Hit #39
Gamestop announced today that it is buying rival Electronics Boutique (ELBO) in a cash/stock deal valuing ELBO at $55/share, a 35% premium over its recent price.
This offer price is a 124% premium over my cost/share of $24.51.
Both Gamestop and Elecronics Boutique were takeover candidates for the likes of Blockbuster or Best Buy. I did not expect them to merge, especially with such a huge premium involved. The market has definitely voted for this deal - with even the acquirer's stock moving up considerably.
I do not own Gamestop stock, since it always seemed expensive. But I will be keeping the shares I get as part of this deal, since the game retailing industry has a few more years of growth ahead.
posted by Guru @ 5:48 AM
4 comments
4 Comments:
Just discovered your blog, and am very impressed. Most educational for those of us trying to make our way around the stock market profitably.
Liz, thanks for the encouraging words. Do let me know how I can make this blog more useful/readable. You got a blog of your own ? Any notes on your investing experience that you would share ?
The only thing I can think of asking for is: details about your decision-making. I'm very interested in how you do research to find potential buys. I'm not blogging yet, but I do spend most of my day reading blogs and looking at charts, trying to decide what to do next. (I used to be a magazine editor. As I grew to hate that business, my husband - a computer programmer - suggested that we see if spending my time investing our not-all-that-vast capital was more cost-effective. So I'm a beginner, although one who is working at investing full-time, which I suppose is odd.)
Liz,
I would suggest going over some of my initial posts. I have listed a series of simple thresholds that I need to see before something moves into a buy list.
I would still consider patience and infrequent trading as essential requirements. You may have an advantage there - studies have shown repeatedly that women get better returns just because they trade less often thus not enriching the broker :-)
I will also try to list, in an upcoming post, a set of potential targets that I own and that have not yet been acquired.
Take a look at what Sharebuilder (www.sharebuilder.com) and Folio (www.foliofn.com) have to offer ( I don't have any relationship with them except for owning accounts there).
A request - since you have already admitted that you have time ;-) - I would appreciate any feedback you have starting from my earliest posts. I am sure that the reading will help you in return.
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