Editor's note: The Value Stock-Picking Training Program is a series of four weekly assignments. (To start with Week 1, click here.) Each assignment is based on one of James Altucher's strategies in his book Trade Like Warren Buffett. To get a copy of the book, click here.
This assignment was written by Stockpickr member Ira Krakow.
Mergers and Acquisitions: One of the greatest feelings you can have as a value 
stock-picker is to wake up one morning, turn on CNBC or log on to TheStreet.com and discover that a stock that you bought has received an offer to be acquired or taken private . Why? Because immediately on the news, the stock usually rockets up.
The market, however, does not typically price a stock at the deal price. Why? There are risks involved between the time the offer is made and (if indeed it occurs) the time the deal closes.
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| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 10,501.05 | 1,114.11 | 2,212.10 | 35.99 |
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