Applied Signal Technology for $38.00

Nice to see first thing on the morning headline news: “Raytheon (Ticker: RTN) buying Applied Signal (Ticker: APSG) for $490 million”. So Raytheon has agreed to purchase Applied Signal Technology for $38 per share in cash. This was the top end of the valuation range so no complaints at all… I was looking for $37 and had a hunch that Raytheon would win the bidding contest. My average cost was $35.12 so I’m looking at a ~ 8% return over a 2 week period. I’ll see where Applied Signal Technology opens before deciding to sell or wait a bit. This was a very low risk trade if you listen to what Applied Signal Technology and Raytheon were saying.