|Written by GSCR Staff|
|Monday, 17 December 2012 09:01|
We have been monitoring trading of Caribou Coffee (NASDAQ – CBOU - $16.04). The stock is trading above the $16.00 per share cash offer agreed to by management and the Board. With 80% of the stock held by institutions, and the way the stock is trading, it looks like the offer may have to be raised.
Clearly, that is what the market is telling us. Back of the envelope we would say that if this is the case, this buyer, which bought Peet’s Coffee earlier this year, might up the bid closer to the all-time high of $18.84, achieved in March 2012.
Stay tuned. If it continues to trade above $16, that could portend good things. But be wary. Many investors of Clearwire (NASDAQ - CLWR) got burned today when the Sprint offer for the rest of the stock was below expectations. If you do want to play it, see if it does in fact drop below $16. I would be a little hesitant to buy it above the $16 level, though it might be good for a flyer. A risky one, that is.
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