Bass Pro Shop Cabela’s Merger: Perfect Storm

Yesterday was a bad day for the investors in the Bass Pro Shop Cabela’s merger; Cabela’s stock was down as much as 7% from its previous day close, over concerns that closing of the deal will drag on.

Investors in the Bass Pro Shop Cabela’s merger┬ámust have been disappointed when they looked at their Cabela’s shares yesterday. Trading at US$58.55/share by the end of the day, the stock is now almost 12% below the price agreed upon in the merger agreement. Continue reading “Bass Pro Shop Cabela’s Merger: Perfect Storm”

Portfolio Update Dec. 17

The last few weeks have been rich in market action. Looking back to some of the trades and updating the portfolio page.

On November 8th, I bought Accuride Corporation (NYSE:ACW) in the depth of the stock market drop that followed the result of the US presidential election. I had noticed that the only milestone missing for the completion of the private equity buyout by Crestview Partners was a shareholder vote on November 15th, which I did not see as an issue. I got in at US$2.42/share, and the deal was completed on November 18th for US$2.58/share, or 10 days after my initial investment. This must be one of my best trades of 2016. I looked to add to my position, but the price went up too fast when markets convinced themselves that a Trump presidency will be good for the economy. Return: 6.6% over 10 days; annualized return: 241%. Continue reading “Portfolio Update Dec. 17”