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| These Stocks Are All Treat And No Trick
Since 1989, when I entered the investment industry, my perspective of life has revolved around stocks and the stock market. For example, late last week I noticed a press release from The Hershey Co. (NYSE - HSY) that announced its first new line of candy in 30 years (unrelated to acquisitions). It reminded me that Halloween is around the corner and that it might be an opportune time to profile a stock that is well-positioned to benefit from both the Halloween and year-end holiday season. Or, in other words, maybe now is the time to highlight a stock primed for a short-term trade.
Alas, while there is no sub-$5 stock that is a pure play in this sector, I did find a sub-$1 stock whose larger parent is a microcap stock that fits the bill nicely. Plus, considering that its majority-owned subsidiary is also publicly traded, investors get two stocks for the price of one.
Rocky Mountain Chocolate Factory, Inc. (NASDAQ - RMCF - $12.56) is an international franchiser, confectionery manufacturer and retail operator in the United States, Canada and the United Arab Emirates. The company manufactures an extensive line of premium chocolate candies and other confectionery products. Its revenues are derived from three principal sources: sales to franchisees and others of chocolates and other confectionery products it manufactures; the collection of initial franchise fees and royalties from franchisees' sales; and sales at company-owned stores of chocolates and other confectionery products.
To read more click here >> or visit http://www.thestockjunction.com
A Teaching Moment: The Anatomy of Mergers and Acquisitions
Frequent readers of TheStockJunction.com are generally aware that our primary focus is the profile of exciting, underfollowed small caps and microcaps, along with an occasional treatise or primer on the stock market and investing itself. From time to time, interesting market events bear mentioning, especially as an opportunity for a teaching moment.
Such an event occurred Wednesday, with the news that Jos. A. Bank Clothiers Inc. (NASDAQ - JOSB) offered to buy rival The Men's Wearhouse (NYSE - MW) for $2.3 billion, or $48 per share, in cash. The offer represented a 37% premium to the previous day's close of MW's stock.
Needless to say, MW's stock was up sharply pre-market, even though MW's board summarily rejected the bid, citing, among other things, that the upstart's proposal was too low. (MW is more than twice the size of JOSB in terms of market cap and revenue.) The stock closed up 27% from the previous day and was roughly 10% below the buyout price offered on an unsolicited basis by JOSB.
To read more click here >> or visit http://www.thestockjunction.com
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