Why SeaCube Container Leasing's Shares Jumped


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 SeaCube Container Leasing jumped 13.5% today after the company announced a buyout.

So what: The Ontario Teachers' Pension Plan is buying SeaCube for $467 million, and shareholders will receive $23 per share. The deal has been approved by SeaCube's board and is expected to close early this year.

Now what: Shares are now trading above the $23 buyout price, indicating investors are expecting a higher bid. That's a risky bet, and the stock is well over its 52-week high, so cashing in here is what I would be doing. If you can get more than the buyout offer without risking that the deal will fall through orthat another buyer doesn't come through, it's the right financial move.

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The article Why SeaCube Container Leasing's Shares Jumped originally appeared on Fool.com.

Fool contributor Travis Hoium has no position in any stocks mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDraw. The Motley Fool has no position in any of the stocks mentioned. 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.

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