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 office supplies retailer OfficeMax
So what: It's no stretch of the imagination to think that a retailer like OfficeMax could be a takeover target. The company has the strong cash flow that private equity buyers like to see, and both P/E players and strategic buyers in the retail sector have been back on the acquisition trail lately. On Monday, Gymboree
Now what: Buyout rumors often prove to be just that -- rumors -- and the excitement of a buyer charging in and paying a big premium ends up fading. So investors who have their eyes on OfficeMax now are well-advised to get interested in the underlying company and the stock's valuation, not just the hope for a buyout. The same holds true for other rumored buyouts including Office Depot
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