Why Caribou Coffee’s Shares Popped

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 Caribou Coffee (Nasdaq: CBOU  ) jumped 30% today after receiving a buyout offer.

So what: The Benckiser Group agreed to buy the company for $340 million, or $16 per share. The group doesn't have plans to make wholesale changes, which will continue to be operated as an independent business.

Now what: Analysts and some large investors have already said that the buyout price is a steal. Right now, the $16.05 share price indicates that investors seem to agree. Shares usually trade slightly below the offer price unless investors think the offer will be increased, which is the consensus right now.

Betting on a higher offer is risky, and all we know is what's on the table right now. Investors may want to cash out some chips to reduce risk that the deal falls through altogether.

Interested in more info on Caribou Coffee? Add it to your watchlist by clicking here.


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

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.

DocumentId: 2158669, ~/Articles/ArticleHandler.aspx, 7/30/2014 11:14:09 AM

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...


Advertisement