Update On My June 2015 Stock Pick Metalico (MEA) And The Acquisition Offer

Created: Wednesday, 17 June 2015 09:51
Last Updated: Wednesday, 17 June 2015 09:51

Dear Subscriber,

I hope that you bought Metalico (MEA) on Wednesday, 3 June 2015, when I recommended it at or below $0.35 per share. Please find more details about this stock pick in my previous post. Based on MEA's daily chart, the NB subscribers had the opportunity to buy MEA at $0.35 and $0.34 per share.

According to yesterday's news, Metalico (MEA) was acquired for $0.60 per share in an all-cash deal, which translates into 70% quick profit for the NB subscribers.

Based also on the terms of the deal:

"Under the terms of the Merger Agreement, Metalico has agreed not to solicit alternative proposals for an acquisition of the Company. However, Metalico is able to consider unsolicited proposals pursuant to the exercise of its Board of Directors' fiduciary duties with Total Merchant having customary rights to match any proposal. Metalico would be required to pay Total Merchant a termination fee equal to $2,245,930 (corresponding to 3.6% of the value of the fully diluted equity) if Metalico terminates the Merger Agreement to accept a superior proposal. In addition, Total Merchant has agreed to a penalty of $3,119,347 (corresponding to 5.0% of the fully-diluted equity) if it fails to close the transaction assuming all closing conditions have been satisfied."

MEA's stock closed at $0.555 yesterday (Tuesday, 16 June 2015). In my opinion, do not wait for a better offer. Do not also wait for the stock to reach $0.60 per share. In my opinion, sell now at $0.555, lock in your 65% quick profit and accumulate cash for my next stock picks.

And if you missed MEA, stay tuned because you will have the chance with the help of this newsletter to jump aboard the next MEA in a timely manner.