January 22, 2013
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 SeaCube Container Leasing (NYSE: BOX ) jumped 13.5% today after the company announced a buyout.
So what: The Ontario Teachers' Pension Plan is buying SeaCube for $467 million, and shareholders will receive $23 per share. The deal has been approved by SeaCube's board and is expected to close early this year.
Now what: Shares are now trading above the $23 buyout price, indicating investors are expecting a higher bid. That's a risky bet, and the stock is well over its 52-week high, so cashing in here is what I would be doing. If you can get more than the buyout offer without risking that the deal will fall through orthat another buyer doesn't come through, it's the right financial move.
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