Sunday, April 15, 2007

Hit #158 (ServiceMaster)

ServiceMaster (SVM) is being bought by private equity group Clayton, Dubilier & Rice for $4.8 billion in a cash deal. The per-share offer of $15.63 makes for a gain of 36.27% over my average cost of $11.47. As with any high dividend yielding stock, a good portion of my gains were the result of (reinvested) dividends.

I had detailed my interest in Servicemaster long time ago in this post on service sector players.

There aren't any other players in this sector worth recommending right now. But Harte Hanks (HHS), the company behind those coupons in your mailbox, promoting offers/discounts from Servicemaster as well as other businesses, will be worth watching. I would like to see a significant pullback in the shares before I consider buying them.

Previous hit - Image Entertainment (#157)


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