M&A Moves Are Electric in This Market
When will companies take their cue from these bold acquirers? On Monday we again saw how positively this market reacts to these bold moves: Shares of VF Corp. (VFC), an apparel maker, reaped a huge gain just on the strength of reports that VF might buy Billabong. The latter is an Australia-based surfing-attire company that's been down on its luck, but has great brands for the fast-growing surfer set. VF Corp. stock started higher as word leaked about the possibility of the bid, and then gained strength throughout the day, ultimately closing up almost 5 points. Remember, VF would be bidding -- not getting a bid!
Billabong is a company that has tremendous credibility among die-hard board fanatics, even as its stock has lost 34% in the last year after sliding 78% the year before, all of which transpired after the company missed a multiple quarters. This darned thing has been crushed, and it now trades at 14% of what it was worth just a couple of years ago -- yet the company is still worth about $500 million....398 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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