Central Freight Lines (CENF) is being bought out for $2.25 per share; the current price is $1.75 per share.
The deal is expected in July so in at most a few months a 29% return can be gained.
Details
Jerry Moyes, who already owns 32% of the stock, is looking to buy-out the company. Add his share with other directors who have commited to voting in favor of the buy-out and 36% of the shares are commited to the buy-out.
The deal was announced in April, then postponed until July.
There is also a lawsuit against Moyes for misleading statements in the IPO documents.
Though there is some risk, I believe there is at least a 50% chance of a 29% return in only a month and will continue research.
Resources
SC 13E-3
Preliminary Proxy
Form 8k - Press Release
At the time of posting Mike Price did not own shares of CENF, but this could change at any time. Do your own research before investing in any stock, the author cannot be held liable for lost money.
Wednesday, June 07, 2006
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1 comments:
Thanks for the heads up, Mike.
I spent about an hour reading it up and I think I'm going to participate myself.
I have another question regarding K-Swiss though. If Steven Nichols wanted, could he increase the distributed dividend to his Class B shares without increasing the dividend on the Class A? I like that the business is generating so much more cash than they know what to do with, but I'm not sure Nichols will do the right thing and distribute it to all shareholders equally.
Thanks for the blog, Mike. Keep it up.
-Vivek
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