Sometimes you just need that right catalyst to get the share price where it should be. That is the excitement of buying stocks on a value basis. Just because you recognize a stock is under valued does not mean the street will figure it out any time soon.
But today, the street recognized the value in Belo (BLC). This is a TV station/newspaper affiliate, mainly known for Dallas holdings. GCI announced today that they were acquiring BLC and the stock is up 27% on the news. BLC is a stock that has been in the MFI lists over at least the past quarter. The interesting thing about the deal is that GCI is also up 25% on the deal. That is the ultimate vote of confidence. It tells me that GCI is getting a lot of synergy/leverage with the deal and getting a good price. If it is such a great price, why was BLC trading so much cheaper before the announcement? Obviously, we want to identify the BLC's out there in advance.
The second stock that is slip streaming to some extent on this deal is TVL, another MFI stock. They are a company very similar to BLC and they are up 21% today to $14. Last summer you could have bought TVL for under $4.00!
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