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.
So what: According to a person familiar with the matter, Crocs has had talks with a few private equity firms, including Blackstone Group and KKR, triggering speculation that the shares might be undervalued. The same source, however, also said that the chances of a deal are slim because of differences over the purchase price, suggesting that Crocs' management may instead look into a stake sale or joint venture to unlock shareholder value.
Now what: I'd be cautious about buying into the M&A buzz. The downside is just too big if Crocs' management team -- which already has credibility issues -- ends up doing nothing, while it seems that Wall Street has already baked in much of the upside. So unless you'd be perfectly willing to own Crocs (and its declining sales trend) as a stand-alone investment, it's probably best to watch the process unfold from a distance.
A more reliable way to wealth
Dividend stocks can make you rich. It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.