The rejection of the offer by Covington to purchase all outstanding shares of Advocat (AVCA) represents a missed opportunity for capital gains in this position for the RSY portfolio. Covington, luckily, has kept the offer open and has written a letter to shareholders expressing their position in support of the buyout (reprinted below.). If the offer was dead, then we might expect a drop to pre-offer levels at around the mid $4 range as stated in the letter. Read more about Rock Solid Yields (RSY): Buy CNAF, CMO, Optional Options, Updates