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Stocks lost to acquisition


CafeB
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In response to MSFT announcement this morning, regret that can no longer invest directly in ATVI for another ten years.

 

Recalls acquisitions of Mentor Graphics by Siemens and Harman by Samsung, both announced in November 2016.

 

Others that you would put on that list of stocks lost to acquisition?

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47 minutes ago, Gregmal said:

This could end up being a long list, no? 

 

Yes, I was not as clear as I might have been. The focus of the topic was to be acquisitions recalled as regrettable when announced--for the loss of the opportunity to continue to invest directly.

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1 hour ago, james22 said:

OAK, but owned BAM at the time (still do) so didn't really matter.

 

Less regrettable than confirmed my BAM position, actually.

 

So disregard.

 

That's a great example. I think considering "losing" a stock can, as you say, go some way to confirming or disconfirming one's long-term interest in the position.

 

As an ATVI shareholder I did not anticipate the regret with which I would respond to yesterday's announcement--and although MSFT is obviously a much larger business with multiple major drivers, I am now more interested in it as the acquirer of those assets.

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Piedmont Natural Gas (PNY) was bought by Duke in 2016.  Sure it was a sleepy utility stock, but I participated in their DRIP program for something like 15 years buying $200/month.  They offered 5% discount on reinvested shares. Sure would have been nice to let that run on auto.

 

 

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15 hours ago, boilermaker75 said:

Clarify (CLFY) being bought by Nortel (NT) for $2.1 billion of NT stock in October 1999. My big mistake was not dumping the NT immediately.

 

NT sold CLFY for $200 million to Amdocs in 2001.

This type of example is much more fun to study. A fun read is Billion Dollar Lessons. Plenty of similar examples.

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On 1/20/2022 at 10:36 AM, spartansaver said:

This type of example is much more fun to study. A fun read is Billion Dollar Lessons. Plenty of similar examples.

 

Thanks for the heads up on the book. The kindle version is only $4.99 so I bought it,

 

https://www.amazon.com/Billion-Dollar-Lessons-Inexcusable-Business-ebook/dp/B001EU9FT2/ref=sr_1_1?crid=3OLQ4AI0ESN2U&keywords=billion+dollar+lessons&qid=1643053834&s=books&sprefix=billion+dollar+lessons%2Cstripbooks%2C249&sr=1-1

 

 

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Coast Wholesale Appliances got taken over (or under, imo) by the majority shareholder. They have a great business model (I've been a long time customer for my rental properties) and had lots of high ROIC growth ahead of them. The valuation didn't reflect the business quality, so even though I made money I was pretty annoyed as I think it was a compounder. 

 

The one that really chapped me was Canadream. They are an RV rental business in Western Canada. Tons of demand, and they were expanding every year (again at high ROIC). Tripled in the time I owned it (under 3 years) but the takeover was still at a low multiple. They had a huge runway, and were improving utilization every year. Plus it was such a capital intensive business and such a small company that they had great reinvestment characteristics, so again a compounder. 

 

In both cases I think I lost a compounder the market hadn't recognized early in the growth phase, so the one time boost was almost certainly outweighed by losing the long term performance. Canadream especially I think would have easily been a 10 bagger. 

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