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 specialty materials producer Ameron International
So what: There's no mystery behind Ameron's gain today. Oilfield equipment maker National Oilwell Varco
Now what: There doesn't seem to be much to do here from the perspective of Ameron's stock. As of this writing, the stock was trading within 1% of the proposed buyout price, so upside arbitrage opportunities are limited. As for betting on the deal falling apart, National Oilwell had slightly more than $3 billion in cash at the end of March, so financing the purchase doesn't look to be a big issue. And while some Ameron investors may have had even higher hopes for the stock, the buyout premium seems pretty generous.
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