Friday, November 08, 2013

Sold the Jones Group and Biogen Idec

I took a loss in the Jones Group, Inc. (Ticker: JNY) today by selling at $13.88 generating a net loss of 11.45%. It has been reported that G-III has dropped out of the bid for the entire company leaving just Sycamore Partners as the only potential bidder for the entire company. This was a ~ 6% position so it was a small hit. I’ve cut my losses and moved on…

I also decided to wind down my risk a bit by selling my holding (~ 8% position) in Biogen Idec, Inc. (Ticker: BIIB) today at $236.03 generating a net gain of 2.32%. I’m just building my cash position a bit.


At November 25, 2013, Anonymous Anonymous said...

Hi MT,

What is your opinion on Fridays news on JNY - "Sycamore in talks to buy Jones Group for less than $16/shr-sources"?
Do you think it will happen? Soon? At what price?

At November 25, 2013, Blogger Money Turtle said...

I do believe this will happen, but Sycamore Partners are very shrewd acquirers and they do not over pay. I would say that JNY will be lucky to get a bid in the mid 15's from Sycamore Partners.

At December 26, 2013, Anonymous Anonymous said...

Hi MT,
Is there any opportunities still with JNY? It's trading at about $14.9, and going to be taken over at $15. Do you have an estimate on when the takeover will be completed? Would you say it 100%. The market seems to be pricing it at near certain. Is there any chance that they may pay more than $15?

At December 26, 2013, Blogger Money Turtle said...

I don't see an opportunity in JNY at this price. You're looking at less than a 1% return for ~ 3 month period (annualized return of less than 4%). Not a good risk return from my point of view. I don't see a higher bid and no deal is 100%. A MAE can happen, but very unlikely.


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