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Is there an arbitrage opportunity picking up ICQ shares?

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Is there an arbitrage opportunity picking up ICQ shares?

Hi James & team,

Excellent call to buy FMG b4 market opened on 23/11/21! What would you consider to be a stop loss for gold after the recent rally fizzled?  Is the takeover of ICQ by Carsome a foregone conclusion just waiting for the formality?  If the Scheme is implemented, iCar shareholders will receive $0.53 in cash per share. Is there an arbitrage opportunity picking up ICQ shares at less than the offered price?

Thanks & regards

Sidney H

Answer

Hi Sydney,

A fair bit in here hence the bullet point answers:

  • FMG does look good now, trading at $17.50 while I type this answer, I’m confident we will see a push towards $18.50 in coming weeks when we may consider a switch to another resource stock depending on respective moves.
  • Gold – if I was trading the precious metal it would be under $US1720 but we have a more strategic view here over coming months plus stocks in the sector are exceedingly cheap at present.
  • ICQ – there does appear to be a small opportunity here but don’t forget to take into account transaction costs, cost of carry and opportunity coast, a pretty thin margin for me.
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iCar Asia Ltd (ICQ)
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