Thursday, September 09, 2004

Hit #22

I have been waiting for close to a year now for this turnaround story to turn into a takeover play, but it paid off handsomely - Intercept (ICPT) was acquired today by Fidelity National Financial for $18.9/share, representing a 8.3% premium over yesterday's price, but a very satisfying 91% premium over my average purchase price of $9.9/share. The deal itself is extra sweet due to the large cash component involved.

Other players in this sector, payment processing, look attractive too. Here is a quick look at the rest -

  • Bisys Group (BSG) : Still attractive at the current price (around $14/share). Definitely a takeover target. I own a few bought at a slightly lower price.
  • Total System Services (TSS): Fairly priced. I don't own any, but will add if i see significant insider buying.
  • Transaction Systems Architects (TSAI): Again fairly priced, and worth buying on a lower price with accompanying insider buying. I don't own any.
  • Fiserv (FISV): Expensive at current price. Will buy only at a big discount.
  • First Data Corp (FDC): Too big to be a takeover target, but looks undervalued. I own a few and still adding.


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