TOO BAD!!

Almost like my idea was stolen by someone that the young Microsoft like company is gone for now! I’m talking about CommerceHub (CHUBA) that I posted just days ago here. It is announced today that a private company GTCR and Sycamore Partners will buy CHUBA in all cash worth $1.1 billion, i.e. $22.75 per share for CHUBA. Unfortunately it will mean CHUBA will become private as well and won’t be available for investors anymore after the deal is closed! It is great for the company for sure as well as for the investors who have bought the shares (if below this price of course) but too bad for long term investors who want to see much more fruits and far greater profits from it. The 25% jump within 2 days seems great but really means nothing if considering how much more gains, maybe 10 times or more could be seen in the long run! TOO BAD!!

CHUBA’s price is trading around $22.5. No surprise as apparently the company is happy with the deal and Street does not expect any problems for the buyout to close as planned. Since not much additional gain left ($0.25 per share) when the deal is closed, it does not make any sense to still hold the shares for another half a year or so waiting for the closing. Although unlikely it could happen that the deal falls apart due to some unexpected issues arising and if so, its stock price will drop quickly as well. Better to just sell CHUBA for now to take the quick profits to free your money for other good opportunities. You will find more here if you simply follow me☺