Monday, October 09, 2006

Hit #118 (NetRatings)

NetRatings (NTRT), the web analytics firm, got a cash offer from Dutch firm VNU which already owns 60% of the firm. The offer, of $16/share, is a premium of 31% over my average cost of $12.21/share. The shares are trading higher at around $16.9 with shareholders expecting a higher bid.

I had bought the shares, on weakness, just a few weeks ago expecting exactly such an offer from VNU. I do expect a higher offer, as this still undervalues NetRatings given its cash position.

The funds for this investment came completely from the recent takeover of SSA Global (Hit #97), and hence represents a nice compounding.

Another player, NetIQ had gone private (Hit #94) not too long ago. I have also started buying shares of Websidestory (WSSI) whose shares were hit when Google made Google Analytics available for free. The large insider buying indicated a bottoming, and I expect the company to be sold eventually, hopefully at a premium to my cost basis.

Previous hit - CNS (#117)


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