Picking From the Crab Fest
When I put together my JIMS CRAB FEST portfolio for cheapskates last December, given the valuations on these companies, I knew that one or more might be acquisition targets. While I didn't know which names might be in play, the reality is that a struggling company's issues are reflected in its stock price. Also, a company with a fairly clean balance sheet and a relatively large amount of cash could make it a big target.
This past September things became interesting when Oaktree Capital Management offered to take toy company Jakks Pacific (JAKK) private at $20 a share. At the time, the offer represented a 25% premium to JAKKS stock price. While Jakks has been profitable, its revenues and margins have been slipping over the years, and Oaktree has not been happy with the company's progress....332 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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