December 3, 2010
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of electronic payments technologist Hypercom (NYSE: HYC ) jumped 10.6% this morning on above-average trading volume, setting fresh four-year highs in the process.
So what: The company is in the process of being acquired by larger e-payment specialist Verifone (NYSE: PAY ) , and the parent-to-be reported a stellar fourth quarter last night. Verifone is also setting multi-year price records today, and this is an all-stock acquisition.
Now what: The Verifone transaction isn't expected to close for another couple of quarters -- but don't expect any more pops like this one. The large discrepancy between Verifone's offer price and Hypercom's share price was based on misgivings about a lowball bid, complete with shareholder lawsuits. Those issues seem to be behind the companies now, and the acquisition is a near-lock after this sudden jump.
Interested in more info on Hypercom? Add it to your watchlist.