I mentioned yesterday that a driver of MFI "success" in 2018 was that a number of companies were acquired. That was then continued yesterday with BMY bidding for CELG.
Guess what? Another strong possibility today (though just rumor at this point). The WSJ had an article saying bids are expected in mid February, although everybody is pretty mum at this time ().
The stock is up 11% in coffee house trading hours. It is funny, because in my view this isn't really news at all. They announced this on September 6th:
Strategic and Financial Alternatives Review
The company also confirmed that it continues to engage with third parties regarding a possible transaction as part of a comprehensive review of strategic and financial alternatives initiated by the company’s board of directors. The ongoing process includes a thorough evaluation of a full range of alternatives to enhance shareholder value.
Dan DeMatteo, executive chairman of GameStop’s board of directors, stated, “As our teams prepare for a busy and exciting holiday period, our board of directors, with the support of our financial and legal advisors, continues to conduct a comprehensive review of strategic and financial alternatives, including, but not limited to, a potential sale of the company.”
The company noted there can be no assurance that the board’s review will result in any transaction. The company does not intend to discuss or disclose further developments related to its review unless and until further disclosure is appropriate. The company and board of directors have been working with Perella Weinberg Partners LP as financial advisor and Sullivan & Cromwell LLP and Pepper Hamilton LLP as legal advisors to assist in the review process.
So while this will help MFI Index and my tracking portfolios, it will not help me that much as I sadly sold about 1/2 my GME from my MFI Formula portfolio on Wednesday :(.
But it illustrates that while I have not been a GME fan, sometimes it is important to check your bias at the door.
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