Another Down Day

Wow. I can't remember a day when there was only one up stock on the TSX 300? Anybody care to take a stab at which one? Printer Transcontinental was up 1.7%. I guess they gained on the fact that one of their big competitors Quebecor World is now officially in receivership.

Today during the bloodbath I got thinking about BCE and its buyout. Could it really be at risk. The buyers including Teachers and Ontario Teachers along with some American buyout firms have pretty deep pockets. There was a rumor lately that admist Merrill's problems, that they would want to walk from their miniscule $375 million dollar stake.

The closing price of BCE today was $34.42, so if the takeout proceeded at the negotiated $42.75 a share, that would be a cool 24% upside! The risk is if the credit markets continue to cool and the deal doesn't get done. Now we'd be left owning a large but laggard telecom company with a yield north of 4% and likely a slow grinding recovery.

Any takers if we can get in below $34 tomorrow? The futures are pointing to a downwards open.