Why Coleman Cable's Shares Popped Midday
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 cable and wire maker Coleman Cable jumped 10% after rumors circulated that the company is for sale.
So what: Around noon EDT, Reuters reported that the company is exploring a sale for as much as $750 million. If true, that's a big premium to the company's $460 million market cap, even after the pop today.
Now what: These are just reports right now, and it's risky to bet on speculation of buyouts. I don't think there's really any reason to change your investment thesis today, but it may be a reason to hang on if you're thinking about selling. A buyout could generate a big premium and, if you're already in the stock, there's no point in selling unless the investment thesis changes, which it hasn't today.
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The article Why Coleman Cable's Shares Popped Midday 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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