Thursday, March 08, 2007

Hit #149 (Cronos)

Cronos (CRNS) is being taken private in a management-led buyout. The $133 million cash offer translates into a per-share price of $16, representing a gain of 34.2% over my average cost of $11.92.

The only other public company in this sector, InterPool (IPX), got its own offer earlier this year. The company is yet to decide on the offer, and is probably just waiting for the bid to be raised before accepting.

While not a direct sector play, Pacer (PACR), a spin-off of APL, makes for a long-term dividend-yielding bet on intermodal service.

Since we are on containers, for the interested I would recommend this recent book The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger. I have read a few pages, but will be waiting for the softcover edition to read further!

Previous hit - Smith & Wollensky(#148)


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