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What: Shares of Quiksilver
So what: Those rumors started because French holding company PPR, which owns luxury and retail companies, announced the sale of Conforama in a $1.6 billion deal. That means it'll be looking for new purchases. PPR owns 71% of Puma, and JPMorgan analysts think Quiksilver could be its next target.
Now what: Given PPR’s position in Puma, Quiksilver could be a nice complementary addition to the portfolio, so the rumor makes some sense. For now, it sounds like speculation; unless that speculation becomes an actual bid, there's a risk that the stock will fall back to prerumor prices. I’m going to sit out the move today, at the risk of missing out on a bump if a bid comes through.
Interested in more info on Quiksilver? Add it to your watchlist.
Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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