Tuesday, May 18, 2010

People Think Paulson is Too Smart to Own MGM Mirage (MGM) Outright

The action in MGM Mirage (MGM) today is pretty funny.

Normally, if someone like Paulson suddenly disclosed a massive stake in a company the stock would get jammed higher.

That's not happening - the consensus seems to be that Paulson is doing this as part of a capital structure arb on MGM. In other words, no one believes that he's actually dumb enough to own the stock outright.

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