Market Shadows Beat Murphy’s Law
We sold Heidrick & Struggles (NASDAQ: HSII) out of our Virtual Value Portfolio on July 5, 2013, for the right reason - to avoid the risk of a non-deal. Our exit price was $17.37 per share.
I suspected a deal might not be forthcoming even though at least two private equity firms were interested in buying the company.
http://marketshadows.com/2013/07/05/locking-in-a-nice-gain/
Tuesday’s trading proved that instinct to be right. HSII closed today at $14.66 or (-17.92%) for the day. Here’s the news.
From The Motley Fool…
“For weeks, rumors have swirled that Heidrick was on the block for possible sale to a new owner. Those rumors were squashed Monday, however, when the executive-search firm simultaneously announced that (a) it has decided to pursue a "stand-alone strategy," and (b) that Chief Executive Officer L. Kevin Kelly is leaving the company. (The company also had some good news -- revenues for the fiscal second quarter look to be close to the high point of its previously announced $110 million-to-$120 million range.)”
It feels good to have made the right call.
See details on all open and closed-out virtual model portfolio actions here.
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