Small Profit Opportunity
|Written by GSCR Staff|
|Monday, 25 June 2012 09:24|
When you see the NASDAQ drop nearly 2% even miniscule gains look good. J. Alexander’s (NASDAQ – JAX - $11.60) is getting acquired for $12.00 per share in cash by Fidelity National (NYSE – FNF). Interestingly, shareholders have the option of receiving $3 in cash per share and ownership in a new entity that will essentially be a roll-up of recently acquired restaurants.
The deal is slated to close in Q4. Granted if one buys the stock it is a 4% gain, but that doesn’t suck for 4-6 months in the grand scheme of things. There is always the possibility the deal doesn’t close or that JAX seeks a better offer which would prompt the stock to go higher. From where we sit, that is unlikely.
Our M&A announcement picks have been doing well and even though it is a small gain from here, you can’t go broke by making a profit.
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