Why American Greetings Shares Soared

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

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 American Greetings (UNKNOWN: AM.DL2  ) , the well-known maker of greeting cards and other social expression products, jumped as much as 13% this morning after announcing an agreement to go private in an all-cash deal.

So what: American Greetings delivered the ultimate "thank you" card to investors by agreeing to be purchased for $18.20 per share by the Weiss family, which includes company Chairman Morry Weiss, CEO Zev Weiss, and President and COO Jeffrey Weiss, among other parties. Shareholders will also receive one final dividend payment of $0.15 per share before the deal closes, effectively netting them $18.35 per share, if the board of directors approves it.

Now what: I'm sure there are plenty of longtime investors in American Greetings who are gritting their teeth after this deal, but it really is a smart move for the company to remove itself from the public pedestal. Greeting-card sales have struggled with the proliferation of electronic and social forms of expression. While American Greetings has been making this transition to mobile forms of expression, its legacy business continues to suffer. With shareholders getting a moderate premium over the Thursday close, hopefully, once privately owned, American Greetings will finally "get well soon."

Craving more input? Start by adding American Greetings to your free and personalized Watchlist so you can keep up on the latest news with the company.

One company that needs no "get well" cards
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in the brand-new free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.

Read/Post Comments (2) | 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.

  • Report this Comment On April 01, 2013, at 10:28 PM, akinnyc wrote:

    Thanks for the update! Do I need to do anything with the stock that I hold or have all my shares automatically been purchased and my brokerage will record the transaction?

  • Report this Comment On April 02, 2013, at 1:08 AM, TMFUltraLong wrote:


    When the transaction closes in July, you will receive $18.20 per share (and possibly a $0.15/share dividend before then). You won't have to do anything (unless you choose to sell now) as the cash will show up in your brokerage account upon settlement.


Add your comment.

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: 2340083, ~/Articles/ArticleHandler.aspx, 9/25/2016 12:14:54 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...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

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

8/9/2013 10:16 AM
AM.DL2 $0.00 Down +0.00 +0.00%
American Greetings CAPS Rating: **