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 Mac-Gray (NYSE: TUC ) were flying today, climbing as much as 42% after it agreed to sell itself to CSC ServiceWorks for $524 million.
So what: Mac-Gray, which operates coin laundry machines and gas-station air machines, agreed to the all-cash deal for $21.25 a share, which represents a 42% premium over its closing price yesterday. Shares jumped to an all-time high on the news. Mac-Gray Chairman Thomas Bullock said the deal "maximizes value for our shareholders, and provides a significant premium." With CSC in the same coin-operated line of businesses, the deal seems like a smart move for CSC as well.
Now what: There's not much more to say about this one. Shares were trading at $21.15 early this afternoon, indicating a high level of confidence in the deal going through as agreed upon. Mac-Gray said it expects it to be completed in the first half of next year.
Looking for more growth picks?
Tired of watching your stocks creep up year after year at a glacial pace? Motley Fool co-founder David Gardner, founder of the No. 1 growth stock newsletter in the world, has developed a unique strategy for uncovering truly wealth-changing stock picks. And he wants to share it, along with a few of his favorite growth stock superstars, WITH YOU! It's a special 100% FREE report called "6 Picks for Ultimate Growth." So stop settling for index-hugging gains... and click HERE for instant access to a whole new game plan of stock picks to help power your portfolio.