Although we don’t believe in timing the market or panicking over market movements, we do like to keep an eye on big changes — just in case they’re material to our investing thesis.
What: Shares of Caribou Coffee (Nasdaq: CBOU ) jumped 30% today after receiving a buyout offer.
So what: The Benckiser Group agreed to buy the company for $340 million, or $16 per share. The group doesn’t have plans to make wholesale changes, which will continue to be operated as an independent business.
Now what: Analysts and some large investors have already said that the buyout price is a steal. Right now, the $16.05 share price indicates that investors seem to agree. Shares usually trade slightly below the offer price unless investors think the offer will be increased, which is the consensus right now.
Betting on a higher offer is risky, and all we know is what’s on the table right now. Investors may want to cash out some chips to reduce risk that the deal falls through altogether.
Interested in more info on Caribou Coffee? Add it to your watchlist by clicking here.