Friday, April 15, 2005

Brookstone bought.

Brookstone, a specialty retailer, got acquired today by a group of investors at a healty premium. I never owned Brookstone as I considered it the most expensive in its group. The buyout today came as a real surprise. The others in this group, Sharper Image (SHRP), Pier 1 Imports (PIR) and Cost Plus (CPWM), provide much more value to potential acquirers.

I own Shaper Image and Pier 1 stock. Both are still very attractive. Cost Plus is also a value play now, though with some more downside left.

Another aspect of today's buyout worth noting is that 2 of the 3 members of the buying consortium are Singapore based, including Temasek, the highly regarded investment fund of the government. Temasek has made some smart bets all over Asia. Does this indicate that a few US retailers have reached a state where they actually provide a safe diversification for foreign funds ?


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