Cooper-Apollo Is Finito.

2 comments Written on December 30th, 2013 by
Categories: ApolloTyre

The Cooper Apollo Deal is finally over. Cooper has called it off, because it was told that financing for the deal will no longer be available. Fat chance it would, since they couldn’t even give financials of Q3 because the China unit revolted. That and the serious upping of salaries by the US union derailed the deal, which went through two court hearings where Cooper blamed Apollo for dragging its feet. Both judges said Apollo didn’t.

A quick note here to record the end of what has been a profitable story for me, despite the drama. (Apollo’s stock has risen over 60% since the initial announcements, and I made 50% in the investment I made).

Apollo might go up even further, but I’m not participating. My deal was that 96 is where it would reach. Beyond that is a function of momentum and while I would usually stay in, this time was an exception because I had no rationale to remain in the trade.

The Cooper Tire stock is down 3% in pre-market trade, and Apollo will open tomorrow after the news. While I think this deal falling through was already known earlier, the stock could easily see a move in either direction. Will this be a case though of “Buy the Rumour, Sell the News”? Tomorrow will tell.

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About the Author:
http://www.capitalmind.in
The man behind Capital Mind. Deepak is a co-founder at MarketVision, a financial knowledge company. Deepak also provides data research and consulting services, and now lives in Bangalore. Connect with him at deepakshenoy@gmail.com.

2 comments “Cooper-Apollo Is Finito.”

Thank you Deepak.. I also made money .. thanks to you :) .. It made sense to me to invest in Apollo after reading your first commentary on capitalmind.in I am keen reader of your analysis on capitalmind..

Happy New Year !!

Cheers! Stock’s done really well even after I sold ;)


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