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 A. Schulman dropped as much as 10% today after dropping its bid for Ferro . Ironically, Ferro dropped the same amount so there were no winners in the lost deal.
So what: A. Schulman approached Ferro's board late last year and made a $563 million offer for the company earlier this year. Both times the company rejected A. Schulman's offers and the company finally gave up today.
Now what: I don't think the loss is bad for A. Schulman, who can now focus on other acquisitions and improving its existing business. Ferro will need to prove that there's more value than these offers showed and the company's meager financial performance over the past year isn't helping its cause. Even though A. Schulman looks like the loser here I think it will save money by not acquiring a company barely breaking even right now.
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The article Why A. Schulman and Ferro Both Dropped Today originally appeared on Fool.com.
Fool contributor Travis Hoium has no position in any stocks mentioned. 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 may not 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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