George Soros made around $700,000 trading shares of the company that owns those new TSA scanners that everyone hates.
Here’s how he did it.
The maker of the TSA scanners, Rapiscan, got a $165 million contract for the new body image scanners four days after the underwear-bomber incident this past Christmas, according to the Examiner’s Tim Carney.
Shortly after, Soros made a profit off the jump in share price.
Soros had bought shares in OSI Systems, which owns Rapiscan, worth ~$316,000 around Christmas. He owned 8,700 shares as of December 31st, according to his 13F. OSI was a new investment for Soros. He owned none as of September 30, 2010.
Currently (as of March 31, 2011, the most recent day Soros Fund had to report long holdings), he owns 7,600 shares of OSI Systems, the company that owns the maker of the scanners, according to his Soros Fund’s latest 13F holdings report.
We did some quick maths and estimated that his earnings could be around $700,000 if he bought on the dip (December 2, 2010) and sold 1,100 shares at the peak (February 15, 2010). Or, on the lower end of the standard deviation, if he bought at the peak higher and sold on March 4th, he would have made around $160,000.
Not a bad profit off of a company that’s gotten terrible press.
(Hat tip Washington Examiner)
OSI Systems stock over the past year: