Or at least it is according to Citi:

Exhibit 1, Citi 'flash' summary of this am:

So it seems, with Merrill trading at $17.76 as I type (and this includes a "Citi Flash" bounce earlier today to $19.20), that this is one whopper of an opportunity. Citi itemise $40 of value and toss in another $5 for (in car mechanic speak) sundries. Or maybe they simply like numbers divisible by 9.

On the small matter of risks to this cajones-heavy call Citi summarise:

I must be misreading it but I can't seem to find the timing on this expected 165% return. Maybe it's one of those feared 'long-term' investments (ie short-term gone awry). Or perhaps some liberty-taking by Citi with the efficient markets hypothesis.

Sarcasm aside, they may be entirely correct but not - for understandable reasons - want to lay out the timing.

And timing is of course the secret to Great Comedy.

NB: Writer short MER
NB1: Thanks for the concern, short closed Friday prior to BoA's $29/share takeover of MER.

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  1. Online Trading // 9/12/2008 07:30:00 PM

    I agree, this would take some large man conkers to see this trade short term.

    Long term it probably is a great trade, but I bet there were similar with Bear and Lehman...

  2. RJH Adams // 9/12/2008 10:08:00 PM

    Lehamn isn't a great long-term trade? Hell, they got 5 bids for the asset management ops tonight...

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