Why ACCO Brands Popped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of office products supplier ACCO Brands (NYS: ACCO) rallied as much as 26% following a news release from the company regarding the early extinguishment of debt.
So what: It's been a doubly exciting day for Acco shareholders as the company completed its merger with MeadWestvaco's (NYS: MWV) office supply division, and the company announced the early redemption of $246.3 million in debt that was due in 2015.
Now what: The early retirement of debt is always a great sign, but I'd prefer to let this newly combined company get a few quarters under its belt before I make a determination of whether it's portfolio-worthy. This looks like a perfect reason to use My Watchlist to track ACCO Brands over the next couple of quarters.
Craving more input? Start by adding ACCO Brands to your free and personalized watchlist so you can keep up on the latest news with the company.
At the time this article was published Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.