Sunday, January 13, 2008

Hit #185 (CheckFree)

Online payment services provider CheckFree (CKFR) was acquired by FiServ (FISV) for $4.4 billion in cash. The $48/share offer translates to a gain of 42.4% over my average cost of $33.7.

I had mentioned CheckFree as a target when it bought Corillian (Hit #144) earlier. In the same post I had mentioned S1 (SONE) as a potential target. While it still remains a target and fairly priced, recent heavy selling by insiders does not invoke confidence.

For long-term buy and holders FiServ would be a good buy, though I would recommend waiting for a better entry point.

Previous hit - Printronix (#184)

Hit #184 (Printronix)

Enterprise printing solutions company, Printronix (PTNX), was acquired by Vector Capital for $108 million. The cash offer of $16/share is a tiny premium of 6% over my average cost of $15.81. Without the dividends along the way, the absolute gain would have been closer to zero.

Beaten down Presstek (PRST) would be another bet in this year, though a risky one with the ongoing SEC inquiry. Xerox (XRX) and Lexmark (LXK) are good turnaround stories, with the former being very attractive now.

Outsourced printing solutions provider VistaPrint (VPRT) is a growth/momentum play. Like Kinko's earlier, it would be acquired by a larger office solutions company.

Veering further away, into 3D printers, both Stratasys (SSYS) and 3D Systems (TDSC) are avenues to bet on a new and growing market. The former has seen some strong insider buying lately.

Previous hit - Pharmion (#183)