Stock of Recommended WMS
Industries (WMS) Jumps 51% On Buyout News
02/01/2013
Shares of WMS Industries Inc. (WMS) jumped
from $16.37 per share to $24.75 per share, an increase of
51.19% on news that Scientific Games (SGMS) has agreed to
purchase all outstanding shares of WMS for $25 per share,
cash. Both boards unanimously approved the transaction, but
WMS shareholders need to also approve the deal. The acquisition
is expected to close by year's end.
WMS was added to our Bear
Market Portfolio on December 27. We are changing its rating
from "strong buy" to "hold." Some analysts
now believe that this deal shows that International Game Technology
(IGT), another member of our Bear Market Portfolio, is undervalued
and could also be a takeover candidate.
Through yesterday, our Bear
Market Portfolio has produced a total return of 88.1%
versus 28.9% for the S&P 500 since inception in 2005.
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