ROH

Back in October 2007 we bought Rohm and Haas due to the fact it was a nice safe and steady stock with room to go up and a nice dividend. Well sometimes those stocks are attractive to the bigger fish in the waters....and on July 10 the big fish of DOW chemical put in an offer to buy ROH for ~$75 a share....~65% higher than where it was on July 9. Nice.

Now, they always say buy the rumor sell the news....so I sold it within a week of the "news". My fear: the deal would collapse and so too would the profits. Like we say...sometimes enough is enough. Since the stock for sure would not go over $75...it was basically dead money (minus the 2.5% dividend) until the deal was closed with only huge downside risk. I guess getting into DOW at a cheap rate could have been a good thing...but since I don't know the conversion details there is nothing to base that on. If I want DOW (with it's 5% dividend by the way) I will just go ahead and buy it directly. Might not be such a bad idea seeing as how it is hovering around a 5 year low and paying 5%....hmmmm