Stock Consideration Change Report
Whirlpool moves into Undervalued territory earning a Buy Watch status. O’Reilly Automotive moves to Sell consideration.
Model Changes – USA Portfolio
Macy’s goes Overvalued and Kindred Healthcare is taken private by TPG. Applied Materials added.
Stock Fair Value Changes
WW Granger and SL Green Realty earn increases in fair value.
Merger: AXA acquires XL Group [XL]
AXA has agreed to buy XL Group [XL] for $57.60/share. This is a price represents a 28% premium over fair value. This is a reasonable offer.
Buyout: Vintage Capital buys Rent-A-Center [RCII]
Why should the shareholders take an offer that only represents 88% of fair value? We have Rent-A-Center rated as an A- in probability of being involved in a merger, acquisition or buyout (MAB). Vintage Capital Management has offered to acquire Rent-A-Center [RCII] for $15/share. This is a price that is only 88% of fair value ($17/share).