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 cable and wire maker Coleman Cable (NASDAQ: CCIX) jumped 10% after rumors circulated that the company is for sale.
So what: Around noon EDT, Reuters reported that the company is exploring a sale for as much as $750 million. If true, that's a big premium to the company's $460 million market cap, even after the pop today.
Now what: These are just reports right now, and it's risky to bet on speculation of buyouts. I don't think there's really any reason to change your investment thesis today, but it may be a reason to hang on if you're thinking about selling. A buyout could generate a big premium and, if you're already in the stock, there's no point in selling unless the investment thesis changes, which it hasn't today.
