Wednesday, August 21, 2013

A Little Cooper Tire & Rubber Company

I took a small position (making up ~ 3% of my holding) in Cooper Tire & Rubber Company (Ticker: CTB) today at $32.37. This company is being acquired by the Indian company, Apollo Tyres, Ltd. for $35 in cash. There is definitely some risk here with the Indian currency getting hit to the strike at Cooper’s manufacturing facility in China. I’m modeling in a closing by December 31, 2013, which would equate to a net gain of 8.12% (~ 22% annualized return). Also note there is an upcoming dividend payout from Cooper.


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