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? on stock price for large corporation positioning itself for sale.
Posted on 2/5/15 at 9:10 am
Posted on 2/5/15 at 9:10 am
If you own stock in a company that is positioning itself to be bought, when should you unload stock? Just before sale goes public? When information on sale becomes public? After?
I don't know if a sale is even in the works. I just know it's getting a lot leaner. Many have suggested this company wants to be bought...so it's no secret.
This is for a fortune 500 company employing approximately 50,000 U.S. employees and another 100,000 world wide. It's a high tech/defense company.
Thanks.
I don't know if a sale is even in the works. I just know it's getting a lot leaner. Many have suggested this company wants to be bought...so it's no secret.
This is for a fortune 500 company employing approximately 50,000 U.S. employees and another 100,000 world wide. It's a high tech/defense company.
Thanks.
2
Posted on 2/5/15 at 9:15 am to a want
Typical a company gets bought at a price higher than the current market value. Once the sale gets announced, the stock price will reflect the acquisition price that was announced. I would wait until the sale goes public and then sell to capitalize on the uptick. JMHO
Posted on 2/5/15 at 9:36 am to iAmBatman
Also, if itform. Often the sale will take some time to get approval and actually occur, so if your goal is to get out, it is usually ideal to do so after the sale is announced, but before it is approved.
In my experience, if it is a large public company, typically many shareholders have stock in certificate form. They will not be able to liquidate their shares quickly and effectively, and some don't even know they own the stock until they get a letter from the transfer company, often Computershare. I find that their is often selling pressure on a stock after all of the mom and pops are able to get out. You also have employee stock options and 401ks that often cannot or do not liquidate until after the sale is finalized.
Just some food for thought.
In my experience, if it is a large public company, typically many shareholders have stock in certificate form. They will not be able to liquidate their shares quickly and effectively, and some don't even know they own the stock until they get a letter from the transfer company, often Computershare. I find that their is often selling pressure on a stock after all of the mom and pops are able to get out. You also have employee stock options and 401ks that often cannot or do not liquidate until after the sale is finalized.
Just some food for thought.
Posted on 2/5/15 at 2:52 pm to a want
I don't think you should assume anything.
Read the filings of the company at the SEC and see what the management has said about their leaner strategy.
If you take the time to read a company's annual report and their quarterly earnings statement you will be better informed than 90% of individual investors.
You can find them here. You want to look at the 10q and 10k reports first.
LINK
Read the filings of the company at the SEC and see what the management has said about their leaner strategy.
If you take the time to read a company's annual report and their quarterly earnings statement you will be better informed than 90% of individual investors.
You can find them here. You want to look at the 10q and 10k reports first.
LINK
This post was edited on 2/5/15 at 3:10 pm
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