Hollywood Video buyout comes undone.

Hollywood Video (HLYW) shares fell on Friday after it was revealed that its buyout may be aborted. I see this as a good time to buy, since someelse must be eyeing them now just for their free cash flow.
In fact, a sub-theme within my overall takeover theme has been buying shares of such failed takeover targets. Here is a list :

• Monolithic Systems (MOSY): proposed acquisition by Synopsys was terminated. I bought a few after this announcement.
  
• Secure Computing (SCUR) : Cyberguard made a hostile takeover attempt. I bought a few after Secure Computing rejected the bid.
  
• PeopleSoft (PSFT) : I will spare you the details. But again, i have been adding often.
  
• Dana Corp (DCN) : Auto-parts maker - ArvinMentor (ARM) tried, unsuccessfully, to buy them last year. I have been planning to buy some.
  

A few months ago Barron's also had a piece focusing on such targets that were eyed by suitors but the merger failed for some reason. The article claimed that these were ultimately bought at a higher price by someone else or they appreciated considerably.
The point here for me is that someone else has done the due diligence to evaluate the company saving you some real hard work. Make full use of it!