How would you like to have to explain to your clients that, acting on buyout news, you went in hard and heavy on the target (ie $millions) and got in ahead of the crowd morons to lock in gains. The price went up over 200% from its overnight close and you nailed down more than half of that ahead of what was rapidly shaping up to be a weekend of wild debauch.
Then, in a sickening moment of realisation reminiscent of the time you locked yourself out of the motel room with only a head full of shampoo for company and a woman (not your wife) passed out drunk in bed on the other side, you recognise that...you bought the wrong freaking stock! Master of the Universe Friday morning you now have the entire weekend to think about it and formulate lines to take for the boss/clients come Monday morning.
This explanation (less embellishments) for unusual movement in the company Allied Motion comes from the not always entirely trustworthy Yahoo message boards. Yet it does have a plausible ring to it and visually looks (allegedly) like this:
Allied Motion trades under the symbol AMOT. The genuine bid target was Advanced Medical Optics whose logo is:
And who refer to themselves in literature as "Advanced Medical Optics (AMO) [NYSE:EYE]". Confused? Me neither. If you got it right the transaction looks thus:
Not Kerviel's league. But still highly amusing.
Ironically, Allied Motion (which I do not own) is itself a very tempting small cap enterprise - free cash flow yield over 20%, low debt, strong Altman Z and Piotroskis, a ridiculous PE and all the signs of being able to weather the storm with something in hand. But nonetheless not about to get bought for a 10 times premium.