Thursday, April 19, 2007

Hit #160 (Mobius)

As forecast repeatedly in this blog, Mobius Management (MOBI) is finally being acquired. The buyer, Allen Systems Group Inc., is paying $10.05/share in a cash deal valuing the company close to $200 million.

This offer represents a premium of 53.2% over my average cost of $6.56/share.

I had picked Mobius as a target repeatedly in the past - when FileNet (Hit #111) was bought, and later when Stellent (Hit #123) was acquired, and then again, when Docucorp (Hit #135) was taken out.

To go with the regular recommendation, I accumulated Mobius shares over time, making it a larger than usual holding in my portfolio. I will be looking to reinvest the proceeds in a different sector.

Interwoven (IWOV), Vignette (VIGN) and to a lesser extent , OpenText (OTEX), remain targets, but they are all expensive at this point. A smaller, but much more speculative, buy would be OmTool (OMTL).

Previous hit - Tribune (#159)


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