Some Good News?

Merger Stuff

Those that follow me know that some of my more recent purchases in the MFI space have included consideration of mergers & acquisitions.  I would not buy an MFI stock solely for M&A, but I am skewing my picks towards names that are potential candidates.

Right now, that just seems the best way to unlock value.  I showed the chart the other day on how growth has been stomping value of late and how that has translated to subpar MFI (and personal) results.  But value can be purchased by a growth company and give them immediate accretion - so that is worth considering.

I did get a good rumor today, CA is being rumored to be taken private (CA shares up 10.8% on buyout rumors analyst says "make sense").  The price I heard was $40 to $45, so still room to rise from today's $35.80 close.

Another one that is out there based on activist hedge fund is ILG.  (Timeshare merger talk lifts VAC, HGV, ILG)

ILG has risen 15% since the end of April.  The analysis by Activist had price in mid 30s - so again room to run from today's close of $27.72.  I am scheduled to sell ILG at start of July as it hits one year anniversary.  I will likely sell and be happy with a very satisfactory profit.

AKRX is one I bought that is being bought out.  I got in on them in early February and am up about 49%.  Seems unlikely to fall through, but fingers crossed.  These can be a bit dangerous, WSTC ended up being taken under; TIME dated several suitors and said "no thanks" and quickly dropped from $18 to $14 and DEPO was famously rumored during the fall and spiked to $26/$27... they are now like $11.

Others you hear mentioned include TGNA, MSGN, VIAB, WBMD and SPLS.