Thursday, April 28, 2016

DreamWorks, Medivation and Sparton

Wow, just when I thought M&A activity would diminish this year, we have a nice uptick just this week.

First we have Comcast Corp. (Ticker: CMCSA) acquiring DreamWorks Animation (Ticker: DWA) for $41.00 in cash. I initiated ~ 3% position at $31.57 yesterday based on the chatter over the weekend. I definitely didn’t expect a deal to materialize this quickly, but I’ll take it…

Next we have Medivation (Ticker: MDVN), which is being stalked by Sanofi. It definitely looks like Sanofi (Ticker: SNY) is prepping to go hostile on Medivation. I currently have a ~ 5% position at $49.82. I do believe that Sanofi will ultimately get Medivation, which will fit nicely with Sanofi’s Genzyme division.

Finally, I initiated a small position (~2%) in Sparton (Ticker: SPA) at $21.70. This small cap defense company is evaluating strategic alternatives of its biz and has decided to put itself up for sale. If a bid materializes, I can see this company gets taken out in the 30’s. If no bid, the company valuation is cheap with limited downside and should do fine over time.

EDIT: I took my profits in Medivation today at $56.36 generating a net gain of 13.10% over a 15 day period.

Wait, I changed my mind... I'm back in at $56.28...

Friday, April 08, 2016

Some Cleco

Here we go again with more Cleco (Ticker: CNL) drama. The stock took a little dive today when The Alliance for Affordable Energy requested a rehearing for April 28th regarding the Cleco merger. I highly doubt this will reverse the Commission’s decision on the merger. It’s just a last ditch attempt to for this group to drum up some noise. I believe there is a very very high probability that this deal closes in April. I initiated a ~ 5.5% position in Cleco today at $54.88 (buy out price = $55.37).