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: There was time for one last retail buyout before the holidays when it was announced today that Jo-Ann Stores
So what: The cash deal was for $1.6 billion, or $61.00 per share, a jump of 34% from yesterday's closing price. The board can look for better offers until Feb. 14, but based on the stock price today, the market thinks this bid will stick.
Now what: Jo-Ann follows J. Crew and Gymboree in accepting a buyout this year. The buyers think being private will give Jo-Ann the chance to renovate stores and speed up expansion without the scrutiny of Wall Street. If shareholders want to hang on until the deal closes, they can squeeze a few more cents out of the stock, but most of the heavy lifting has been done, so this Fool would cash out now.
Interested in more info on Jo-Ann Stores? 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 Motley Fool CAPS picks at TMFFlushDraw.
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.