Focus Articles

Focus Article: Cybex Merger Arbitrage

A complementary strategy that I have used over the last few years is merger arbitrage where investors attempt to capture the small spread that remain after a deal or merger is announced. We covered the strategy in detail while highlighting the 9.5% spread on Pfizer’s deal to acquire Wyeth in 2009. We revisited the strategy in 2010 in the complex deal between Coca-Cola Company (KO) and the bottling company Coca-Cola ...

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Focus Article: Glu Mobile (GLUU)

Insider buying slowed down to a trickle over the last two weeks leaving us with very few candidates for the weekly focus article. Following the big decline in one of our portfolio companies, Glu Mobile (GLUU), I decided to write a weekly focus article providing an update about this mobile gaming company instead of highlighting a new opportunity. Just as I started working on the article, I noticed amongst the ...

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Focus Article: Rovi Corporation (ROVI)

Rovi Corporation (ROVI) $14.51 The Company: For well over a decade now, one of my best sources for information for music was a site called AllMusic.com. Most popular music services including iTunes, Pandora and Spotify also depend on AllMusic.com for information about artists, albums and songs. Rovi acquired AllMusic.com in late 2007 for $72 million. Given that one of Rovi’s key products is providing information about movies, music and other ...

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Focus Article: Cracker Barrel Old Country Store, Inc. (CBRL)

Cracker Barrel Old Country Store, Inc. (CBRL) $67.19 The Company: Cracker Barrel Old Country is ten all-American country themed restaurant that started in 1969 in Lebanon, Tennessee. Cracker Barrel restaurants also have an attached retail shop that sell everything from rocking chairs to jars of fried apples. The company generates about 20% of its sales from the retail shops. In the fiscal year 2011 ended July 2011, the company generated ...

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Focus Article: Hot Topic Inc. (HOTT)

Hot Topic Inc. (HOTT) $9.12 The Company: Hot Topic is a mall-based retailer that specifically targets teens with music, movies and pop culture inspired clothing and accessories. It has also become one of the leading retailers catering to plus size women through its Torrid line of stores. According to NPD, the plus size women’s category is growing with 32% of women considering themselves as plus size. The plus size category ...

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Focus Article: Belden Inc. (BDC)

Belden Inc. (BDC) $38.40 The Company: With a witty and apt slogan of “Sending All The Right Signals”, Belden is a 110 year old company that sells cable, connectivity and networking products. Its cable division includes copper, coaxial and fiber optic cables and accounts for more than 70% of revenue. The other part of the revenue pie is shared almost equally between the connectivity and networking products divisions. With a ...

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Focus Article: Zipcar Inc. (ZIP)

Zipcar Inc. (ZIP) $7.90 The Company: Founded in 2000, Zipcar is a car sharing company that allows customers to rent cars for as little as an hour primarily from densely populated urban areas and over 250 University campuses. The key mantras of the company appear to be fun, accessibility and sustainability. The company has over thirty models of cars and you get to pick cars like the Mini Cooper and ...

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Focus Article: The Cheesecake Factory (CAKE)

The Cheesecake Factory (CAKE) $33.14 The Company: The Cheesecake Factory started out as a small 700 square foot store in Los Angeles when it was founded in 1972 by Oscar and Evelyn Overton. Their son David Overton launched the first Cheesecake Factory restaurant in 1978 and now serves as the CEO of a company with 173 restaurants and $1.76 billion in annual revenue. The company operates in two segments. The ...

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Focus Article: Trading the VIX

While working through the insider purchases from last week, I considered several companies as potential candidates for this week’s weekly focus article but came up short. The $1 million purchase by the Chairman of E*Trade (ETFC) was certainly interesting as was the $820,000 purchase by a director of The Cheesecake Factory (CAKE) but neither company felt like a screaming buy. This lack of a candidate combined with some business related ...

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Focus Article: Nautilus Inc. (NLS)

Nautilus Inc. (NLS) $2.44 The Company: Nautilus Inc. is a marketer, developer and manufacturer of consumer fitness products primarily in the United States and Canada. The company was founded in the year 1986 as Bowflex of America. Most consumers interested in strength training have probably heard of Bowflex thanks to the incessant commercials and informercials promoting their home gym products. In 1999, the company acquired Nautilus Inc. and expanded into ...

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