Tuesday, December 15, 2009
Last year Carlos Slim, Mexcian magnate and occasionally the richest man in the world, began accumulating an 18% position in Saks Fifth Avenue, which at that point was trading at al all time low (around $2.50/sh). Almost immediately, the Saks board adopted a poison pill. Now that Slim has moved on, the Saks board has filed an 8-K announcing that it has amended its poison pill (rights plan) to allow the rights to expire on Dec 14, 2009 rather than 2018 as the plan had originally envisioned.
If you had invested in Saks two years ago, your investment would have lost approximately 60% in value -- even after the mini-run-up since this past summer. Congratulations.