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 wound-care products specialist Kinetic Concepts (NYSE: KCI) climbed 12% in early Wednesday trading on news that it is in talks to go private in a leveraged buyout.

So what: Citing people close to the matter, Bloomberg reported that Kinetic is negotiating a sale with a group of private equity firms for a deal possibly valued at more than $5 billion -- or a greater than 16% premium to yesterday's closing price. Kinetic shares are hitting new 52-week highs on the news with extraordinarily high volume, so it's obvious that Mr. Market thinks the odds of a deal going down are pretty good.

Now what: Kinetic may be one takeover target worth taking a chance on. Even with today's double-digit pop and big run-up over the past year, the stock still trades at a cheapish forward P/E of 12. Fools know never to buy a stock based on buyout buzz alone, but Kinetic's strong cash flow generation, global growth prospects, and, most importantly, reasonable valuation might provide enough downside protection to make the bet a safe one.

Interested in more info on Kinetic? Add it to your watchlist.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Kinetic.Try any of our Foolish newsletter services free for 30 days.

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