GA Bid At 11.75

GA, a stock in my February 2013 and recent November MFI tranches got a bid from their chairman to be acquired at 11.75. They have spiked about 11% today to 11.38. Whenever you see these things, you wonder if anyone knew in advance had traded on it. Looking back, trading volumes on Wednesday, Thursday and Friday last week were three to four times higher than average. And over those three days, the stock moved from 9.06 to 10.13, on no major news. I would suggest it is likely someone knew something was baking in the oven.  I promise I did not know anything, pretty clear as I bought on the 15th, which looks like a pretty ordinary day.

So my February buy of GA is now up 94% and my November 15th buy is already up 25%.  I think there is a reasonable likelihood that a higher bid emerges. The board has to be very careful to avoid the perception of favoritism to the chairman. So I suspect they will hire an external adviser and allow other parties to look under the kimono as they say.  I will certainly not be selling my shares and may even consider adding to my position.