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 AMCOL International Corporation (NYSE: ACO) jumped 12% today after the company agreed to be acquired.
So what: Imerys S.A. is acquiring AMCOL for $41 per share in cash in a transaction that's valued at about $1.6 billion. AMCOL will merge with a subsidiary of Imerys, and AMCOL will actually be the surviving company.
Now what: Shares are now trading higher than the $41 offer price, which indicates that investors think the offer will eventually go up. Usually, buyouts take place at more than a 12% premium, so I could see shareholders demanding more money. With that said, there's a risk that the deal will go off as planned, and cashing out some shares at the higher price would be a good move today.
Get your next high-growth stock pick here
Opportunities to get wealthy from a single investment don't come around often, but they do exist, and our chief technology officer believes he's found one. In this free report, Jeremy Phillips shares the single company that he believes could transform not only your portfolio, but your entire life. To learn the identity of this stock for free and see why Jeremy is putting more than $100,000 of his own money into it, all you have to do is click here now.