99 Cents Only Stores Shares Popped: What You Need to Know
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 99 Cents Only Stores (NYS: NDN) climbed 10% on Friday after The New York Post reported that Apollo Management was ready to make an offer on the discounter.
So what: The newspaper had suggested last month that an Apollo bid was possible, but this latest report has investors believing that a deal is now probable. If the paper's unnamed source is to be believed, Apollo's looming offer of $22-$24 per share -- topping an earlier bid made by Leonard Green & Partners and the company's controlling Schiffer-Gold family -- represents about a 23% premium to yesterday's close.
Now what: Expect the bidding war to continue. The New York Post also reported that Leonard Green is thinking about a final bid that would be substantially higher than the current offer. So while long-term Fools know never to buy solely on takeover talk, speculative types might just have a short-term opportunity on their hands.
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At the time this article was published Fool contributorBrian Pacamparaowns no position in any of the companies mentioned. Try any of our Foolish newsletter servicesfree for 30 days.We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool'sdisclosure policyalways gets a perfect score.
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