Thursday, June 30, 2011

Some More Blackboard and L-1 Identity Solutions

I should have held onto my BJ’s Wholesale, Inc. (Ticker: BJ) position just a tad longer, but you just have to evaluate the risk and reward. I wasn’t comfortable with the potential upside of just a few dollars versus a substantial drop in the stock if there was no deal. In any case, you learn and move on…

Today, I added to my Blackboard, Inc. (Ticker: BBBB) position at $43.43. After the close today, Reuters is reporting that Providence Equity Partners is close to acquiring Blackboard and may announce the deal tomorrow morning. Now the big question is what price? I would be surprised if the price was over $50. I guess we’ll see tomorrow morning…

I also added to my position in L-1 Identity Solutions, Inc. (Ticker: ID) at $11.76. I’m looking at this deal to close around July 18th. Safran SA is acquiring the company for $12.00 in cash. The company is currently working on a mitigation agreement with CFIUS, which is holding up the closing of this transaction. There's always a chance that CFIUS blocks this transaction, but I see this as a very low probability.


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