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Rule Breaker Investing

How to Spot a Potential Buyout, Vol. 2

Rule Breaker Investing

The Motley Fool

Business, Investing, Invest, Rulebreaker, Stocks, Company, Growth, Stockmarket, Fool, Foolish

4.5928 Ratings

🗓️ 20 September 2017

⏱️ 36 minutes

🧾️ Download transcript

Summary

Last week David highlighted 5 great stocks that you've probably never heard of. A few days later, one of those stocks announced a buyout offer from Northrop Grumman, leading to a 20% pop in a day! What can we learn from this good fortune? Join us for some inductive reasoning and a little boardgaming to find out how to spot a likely buyout candidate.

Thanks to Harry’s for supporting Motley Fool. Get your Free Trial Set – go to Harrys.com/fool

Transcript

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0:00.0

Thanks to Harries for supporting The Motley Fool.

0:02.5

Get your free trial set, including a razor handle, five blade cartridge, and shave gel.

0:07.8

Go to Harries.com slash Fool.

0:10.8

It's the Rule Breaker Investing Podcast with Motley Fool co-founder David Gardner.

0:18.0

Welcome back to Rule Breaker Investing.

0:22.0

I'm David Gardner. Thanks for joining in with me on this

0:25.1

eventful week. Well, every week is eventful, really, if you cast your net wide enough. But for us and

0:31.8

for this podcast, it's been particularly eventful because of a funny thing that happened this Monday morning.

0:38.0

So last week I shared with you five great stocks you've never heard of.

0:43.2

Now maybe you've heard of one or two of them,

0:44.8

if you're a rule breakers member

0:46.4

or a stock advisor member, you might have even known all five.

0:49.5

But I submitted to you last week.

0:51.3

Most of the world doesn't know most of these companies

0:54.6

and that was part of the allure. As it turns out one of those companies

0:59.7

apparently somebody took a shine to because on Monday of this week it got bought out or at least it was announced that

1:06.8

orbital ATK which is one of the five great stocks you've never heard of from last week is going to apparently be purchased by

1:13.4

Northrop Grumman the very large US-based aerospace and defense company and that's

1:19.1

funny for a couple of reasons the well actually you know what I want to spend a little bit of time an excerpt

1:25.0

two things that were said from last week's podcast and my talented producer

1:28.0

Rick Engdall is going to make this happen I hope I'm going to try to speak to both of them right now.

1:33.0

He's going to excerpt what I said last week.

...

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