Monday, May 08, 2006

Recycling takeover proceeds

I had hoped to make regular posts on how I end up redeploying cash returned from takeovers. If only there were a few more hours to the day ...

I will attempt to post every once in a while on this topic.

Over the last two weeks, I received cash from these takeovers - J. Jill, Net2Phone (update), Sports Authority, Raindance and Pegasus. There were also a couple of one-time dividend payouts that were large enough to be reinvested on their own - from Cablevision and Saks.

I have split the proceeds into CNet (CNET), which became attractive after the recent pullback following earnings, Printronix (PTNX) and Playboy (PLA), which also had its share of earnings-related bad news.

CNet remains a target, as I had mentioned a while ago here when iVillage got acquired.

Playboy (as detailed in this post) and Printronix both look undervalued, with the former being a target for a management-led buyout, and the latter a target for a larger competitor/partner.

I will also be looking to add to my current Taro Pharmaceuticals (TARO) position.


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