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...
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 Riverbed Technology, (NASDAQ: RVBD ) popped 11% today after activist hedge fund Elliott Management Corp. offered to buy the networking gear maker for about $3.1 billion.
So what: The all-cash offer values Riverbed at $19 per share and represents a premium of 6% to yesterday's close price. Elliott -- which already owns a 10.5% stake in the company -- is making the move as it clearly sees Riverbed as undervalued, but with the stock already trading above its $19 offering price, Mr. Market is betting that this is just the first step in the value-boosting process.
Now what: Expect Elliott's offer to prompt higher bids in the near future. "To this point, we believe other strategic and financial buyers could enter the Riverbed bidding process over the coming months as this remains a core strategic asset within the broader technology food chain," FBR Capital analyst Daniel Ives wrote in a note to clients. Of course, unless you'd be perfectly willing to own Riverbed as a long-term investment, it's probably best to watch the process unfold from the sidelines.
More reliable ways to build 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.