Advance America Shares Skyrocketed: What You Need to Know

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

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 Advance America (NYSE: AEA  ) surged a whopping 33% on Thursday after Mexican company Grupo Elektra, owned by billionaire television mogul Ricardo Salinas, said it would acquire the payday lender for $656 million.  

So what: The all-cash deal values Advance America at $10.50 per share and represents a 33% premium to its Wednesday closing price. The move also marks Elektra's first investment in the U.S. financial services market, putting Salinas under the eye of U.S. regulators who've recently been focusing on the payday lending space.

Now what: When you make 30%-plus in one morning, taking at least some dough off the table seems like the prudent thing to do. The deal is still subject to regulatory and shareholder approval, after all, so Advance America investors shouldn't wait too long to book some of those juicy gains. While Advance America may now solicit competing bids for a 45-day "go-shop" period, holding out for a dramatically better offer seems a tad risky.  

Interested in more info on Advance America? Add it to your watchlist.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1782357, ~/Articles/ArticleHandler.aspx, 10/28/2016 6:05:58 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,161.19 -8.49 -0.05%
S&P 500 2,126.41 -6.63 -0.31%
NASD 5,190.10 -25.87 -0.50%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
AEA.DL $0.00 Down +0.00 +0.00%
Advance America, C… CAPS Rating: ***