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 Pacific (NASDAQ:APFC) jumped 19% today after the chemical company agreed to be bought out by H.I.G Capital.
So what: H.I.G plans to begin a tender offer by Jan. 24 to acquire American Pacific's outstanding shares of common stock for $46.50 per share, close to where the stock is trading today. If the tender is completed successfully the rest of the shares will be acquired through a second-step merger at the same price. The total deal is valued at $392 million.
Now what: With shares already trading at nearly the tender offer, I don't see much reason not to sell today. Some investors may hold on for a higher offer, but the downside risk is that the deal falls through. I'd be a seller today and move on to the next opportunity after a nice gain.
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Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.