Karen Finerman Likes Airgas, Inc. (ARG)
Karen Finerman said on CNBC's Fast Money that she likes Airgas, Inc. (NYSE: ARG). She explained that Airgas (ARG) is a high risk, high reward, risk-arb play, and it is being pursued by Air Products & Chemicals, Inc. (NYSE: APD).
Air Products & Chemicals, Inc. (APD) is trying to get three seats in the board of directors of Airgas (ARG), and change next year's annual meeting to January. Karen Finerman added that basically APD is trying to force Airgas (ARG) to put themselves up for sale.
Karen Finerman believes that you have to play this with options, and she likes the October 65 calls at $2.60. If APD succeeds in its intentions ARG will move to the high $60 range, but if APD fails you will lose the money that you invested in options.
Airgas, Inc. (NYSE: ARG) gained 0.37% today, and closed at $64.83.
