BRNC - The most unthrilling buyout ever
My buddy ctojeira and I saw this thing coming a year ago. Nice company trading rediculously close to book value. We were just thrown for how it could be so cheap.
One answer came when Wexford Capital was trying to end its position. That kept the stock down for quite sometime - and when Wexford was done, it ran from $15 to $20 in no time. Then it ran from $20 to $14 just as fast and has languished there ever since.
Today, we get the buyout - moving the stock to the upper $15. With cash the total prize is actually $16.33, not great, but acceptable. Am I happy? No. Am I upset? No. I am almost shocked by my non-emotion. The most unthrilling buyout ever. When GSF and RIG merged I left my seat. When AstraZeneca bought MedImunne I stripped naked and ran around the block. When private equity gobled up Sabre I did the cabbage patch. When ALY bought BRNC I shrugged my shoulders.
The next question is whether the new company, ALY is worth holding. So far it looks somewhat promising, but more homework needed.
Now if someone would just pick up IMOS for $20 I'd be all set!