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 EnergySolutions (ES) jumped as much as 12.8% today, on news of a buyout of the struggling company.
So what: Energy Capital Partners has agreed to buy the company for $3.75 per share, for a total deal of $1.1 billion. Two months ago, the company said it would have to sell assets to cut debt, and this was another way out for the board.
Now what: Usually, buyouts come with a larger premium than 9%, and investors have bid shares past the offer price during trading today. This usually means that they are expecting someone to come in with a better offer. That's a risky bet and, with little upside when the deal goes through, I would cash in my chips today.
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