Why Ancestry.com's Shares Soared
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 family-tree tracker Ancestry.com (NAS: ACOM) were getting a boost today from rumors that it may be about to get new parents. Shares rose as much as 18% on the reports.
So what: The fact that a sale may be in the offing isn't breaking news -- news outlets had previously reported that the website was talking to potential buyers. What today's note from The New York Times' DealBook brings to the table is that a deal with a private-equity company may be close and that the deal could be done between $35 and $39 per share.
Now what: While the news comes based on "people with knowledge of the matter," none of this means that a deal is definite, or that the suggested buyout price is on target. Placing bets in a buyout guessing game here might seem like easy money, but as a long-term strategy, money moves like that are more likely to lead to heartbreak than vast riches. If you think today's price is a fair one to own Ancestry.com for the long term, feel free to jump into the fray. But I'd be hard-pressed to say that chasing the potential buyout pop is a Foolish move.
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The article Why Ancestry.com's Shares Soared originally appeared on Fool.com.
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