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Friday 24th of March 2017

Welcome to the SINLetter investment blog, a place where we discuss stock investment ideas as well as post updates related to the model portfolio. For educational purposes only and not meant as personal investment advice.

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Asif

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    Merger Arbitrage Mondays – August 29, 2016

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    August 28, 2016 | Merger Arbitrage | Author Asif

    Merger activity increased last week with six new deals announced and four deals closing.

    You can find all the active deals listed below in our Merger Arbitrage Tool that automatically updates itself during market hours.

    Deal Statistics:

    Total Number of Deals Closed in 2016 141
    Total Number of Deals Not Completed in 2016 11
    Total Number of Pending Deals
    Cash Deals 61
    Stock Deals 19
    Stock & Cash Deals 12
    Special Conditions 8
    Total Number of Pending Deals 100
    Total Deal Size $1012.49 billion

    New Deals:

    1. The acquisition of Medivation (MDVN) by Pfizer (PFE) for $14 billion or $81.50 per share in cash.
    2. The acquisition of CST Brands (CST) by Alimentation Couche-Tard for $4.4 billion or $48.53 per share in cash.
    3. The acquisition of CIFC (CIFC) by F.A.B. Partners for $333 million. Under the terms of the agreement, shareholders of CIFC will receive $11.46 in cash per share  — $11.36 per share as consideration in the merger, plus a $0.10 per share distribution. The CIFC Board has declared a cash distribution of $0.10 per share to be paid on September 12, 2016 to shareholders of record as of the close of business on August 31, 2016.
    4. The acquisition of AEP Industries (AEPI) by Berry Plastics Group (BERY) for $765 million. Under the terms of the agreement, each AEP shareholder will elect to receive either $110 in cash or 2.5011 shares of Berry common stock per AEP share in the transaction, subject to an overall 50/50 proration to ensure that 50% of the total outstanding AEP shares are exchanged for the cash consideration.
    5. The acquisition of Rackspace Hosting (RAX) by affiliates of Apollo Global Management for $4.3 billion or $32.00 per share in cash.
    6. The acquisition of Skullcandy (SKUL) by MRSK Hold and MRSL Merger, entities affiliated with Mill Road Capital Management (collectively, “Mill Road”) for $196.6 million or $6.35 per share in cash.

    Deal Updates:

    1. On August 23, 2016, Cousins Properties Incorporated (CUZ) and Parkway Properties (PKY) announced that at special meetings held on Tuesday, stockholders of both companies approved all proposals related to the previously announced stock-for-stock merger between Cousins and Parkway.
    2. On August 24, 2016, Apollo Commercial Real Estate Finance (ARI) and Apollo Residential Mortgage (AMTG) announced that the common stockholders of AMTG approved the proposed acquisition of AMTG by ARI at a special meeting of AMTG stockholders. The transaction is expected to close on August 31, 2016, subject to customary closing conditions.
    3. On August 24, 2016, Skullcandy (SKUL) announced the termination of the previously announced merger agreement with Incipio, and the entry into a new merger agreement with MRSK Hold and MRSL Merger entities affiliated with Mill Road Capital Management.
    4. On August 25, 2016, OPKO Health (OPK) announced that at a Special Shareholder Meeting, shareholders of Transition Therapeutics (TTHI) holding approximately 93% of the outstanding common shares, voted to approve the previously announced agreement under which OPKO Health will acquire Transition Therapeutics. The Court hearing for the final order is scheduled to take place on August 29, 2016, and the acquisition is expected to close on September 1, 2016.
    5. On August 26, 2016, Alere (ALR) issued a statement saying it’s suing the company it’s hoping to merge with, Abbott Laboratories (ABT). Alere said in a statement that it filed the complaint Thursday in Delaware Chancery Court hoping “to compel Abbott to fulfill its obligations under the terms of the merger agreement to take all actions necessary to promptly obtain all required anti-trust approvals.”

    Closed Deals:

    1. The acquisition of Qlik Technologies (QLIK) by Thoma Bravo on August 22, 2016. It took 81 days for this deal to be completed.
    2. The acquisition of DreamWorks Animation (DWA) by NBCUniversal on August 23, 2016. It took 117 days for this deal to be completed.
    3. The acquisition of Heartware International (HTWR) by Medtronic (MDT) on August 23, 2016. It took 57 days for this deal to be completed.
    4. The acquisition of The First Marblehead Corporation (FMD) by FP Resources USA on August 23, 2016. It took 82 days for this deal to be completed.

    Top 10 deals with largest spreads:

    Symbol Announced

    Date

    Acquiring

    Company

    Closing

    Price

    Last

    Price

    Closing

    Date

    Profit Annualized

    Profit

    HTCH 11/02/2015 TDK Corporation (N/A) $4.00 $1.58 09/30/2016 153.16% 1747.03%
    ALR 02/01/2016 Abbott Laboratories (ABT) $56.00 $39.55 12/31/2016 41.59% 122.43%
    CI 07/24/2015 Anthem, Inc. (ANTM) $167.77 $127.65 03/31/2017 31.43% 53.61%
    HUM 07/03/2015 Aetna Inc. (AET) $223.18 $177.38 12/31/2016 25.82% 76.00%
    RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) $9.00 $7.43 12/31/2016 21.13% 62.20%
    KLAC 10/21/2015 Lam Research Corporation (LRCX) $78.91 $67.52 12/31/2016 16.86% 49.63%
    LXK 04/19/2016 consortium of investors led by Apex Technology Co., Ltd. (Apex) and PAG Asia Capital (PAG) (N/A) $40.50 $35.49 12/31/2016 14.12% 41.55%
    FGL 11/09/2015 Anbang Insurance Group Co., Ltd. (N/A) $26.80 $23.59 06/30/2016 13.61% -82.78%
    APOL 02/08/2016 A consortium of investors including The Vistria Group, LLC, funds affiliated with Apollo Global Management, LLC and and Najafi Companies (N/A) $10.00 $8.83 08/31/2016 13.25% 2418.18%
    IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) $38.90 $34.75 12/31/2016 11.94% 35.15%

    List of all pending deals:

    Symbol Announced

    Date

    Acquiring

    Company

    Deal

    Type

    Closing

    Value

    Closing

    Price

    Last

    Price

    Volume Closing

    Date

    Profit Annu.

    Profit

    + HTCH 11/02/2015 TDK Corporation (N/A) Special Conditions $126 million $4.00 $1.58 93,448 09/30/2016 153.16% 1747.03%
    + ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.8 billion $56.00 $39.55 1,442,501 12/31/2016 41.59% 122.43%
    + CI 07/24/2015 Anthem, Inc. (ANTM) Cash Plus Stock $54.2 billion $167.77 $127.65 1,683,923 03/31/2017 31.43% 53.61%
    + HUM 07/03/2015 Aetna Inc. (AET) Cash Plus Stock $37 billion $223.18 $177.38 525,969 12/31/2016 25.82% 76.00%
    + RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) All Cash $17.2 billion $9.00 $7.43 6,025,001 12/31/2016 21.13% 62.20%
    + KLAC 10/21/2015 Lam Research Corporation (LRCX) Cash Plus Stock $10.6 billion $78.91 $67.52 1,392,598 12/31/2016 16.86% 49.63%
    + LXK 04/19/2016 consortium of investors led by Apex Technology Co., Ltd. (Apex) and PAG Asia Capital (PAG) (N/A) All Cash $3.6 billion $40.50 $35.49 351,987 12/31/2016 14.12% 41.55%
    + FGL 11/09/2015 Anbang Insurance Group Co., Ltd. (N/A) All Cash N/A $26.80 $23.59 85,073 06/30/2016 13.61% 0.00%
    + APOL 02/08/2016 A consortium of investors including The Vistria Group, LLC, funds affiliated with Apollo Global Management, LLC and and Najafi Companies (N/A) All Cash $1.1 billion $10.00 $8.83 458,433 08/31/2016 13.25% 2418.18%
    + IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) All Cash $6 billion $38.90 $34.75 515,602 12/31/2016 11.94% 35.15%
    + WR 05/31/2016 Great Plains Energy Incorporated (GXP) Special Conditions $12.2 billion $60.00 $54.50 693,003 03/31/2017 10.09% 17.21%
    + CVT 04/18/2016 affiliates of Vista Equity Partners (N/A) All Cash $1.65 billion $36.00 $32.70 113,815 09/30/2016 10.09% 115.11%
    + AIXG 05/23/2016 Fujian Grand Chip Investment Fund LP (N/A) All Cash $748.36 million $6.66 $6.05 30,651 12/31/2016 10.08% 29.68%
    + TSL 08/01/2016 Investor consortium comprising Mr. Gao and other entities. (N/A) All Cash $2.3 billion $11.60 $10.54 1,044,330 03/31/2017 10.06% 17.15%
    + SCTY 08/01/2016 Tesla Motors (TSLA) All Stock $5.4 billion $24.20 $22.05 1,488,049 04/30/2017 9.75% 14.58%
    + STJ 04/28/2016 Abbott Laboratories (ABT) Cash Plus Stock $25 billion $84.18 $78.01 13,155,593 12/31/2016 7.91% 23.27%
    + VAL 03/20/2016 The Sherwin-Williams Company (SHW) All Cash $11.3 billion $113.00 $105.46 148,041 03/31/2017 7.15% 12.19%
    + IOC 07/21/2016 Exxon Mobil Corporation (XOM) Special Conditions $2.5 billion $52.07 $49.15 196,696 09/30/2016 5.94% 67.76%
    + AMTG 02/26/2016 Apollo Commercial Real Estate Finance, Inc. (ARI) Cash Plus Stock $641 million $14.29 $13.61 179,051 08/31/2016 4.96% 905.66%
    + SEMI 08/17/2016 GlobalWafers Co., Ltd. (N/A) All Cash $683 million $12.00 $11.45 452,021 06/30/2017 4.80% 5.75%
    + CFNL 08/18/2016 United Bankshares, Inc. (UBSI) All Stock $912 million $27.53 $26.31 449,401 06/30/2017 4.65% 5.57%
    + CKEC 03/03/2016 AMC Entertainment Holdings, Inc. (AMC) All Cash $1.1 billion $33.06 $31.71 80,036 12/31/2016 4.26% 12.53%
    + PBCP 06/02/2016 Prudential Bancorp, Inc. (PBIP) Special Conditions $38.1 million $11.28 $10.85 450 12/31/2016 3.96% 11.67%
    + YDKN 07/21/2016 F.N.B. Corporation (FNB) All Stock $1.4 billion $26.63 $25.70 624,569 03/31/2017 3.63% 6.19%
    + JOY 07/21/2016 Komatsu America Corp. (N/A) All Cash $3.7 billion $28.30 $27.33 1,719,124 06/30/2017 3.55% 4.25%
    + LLTC 07/26/2016 Analog Devices, Inc. (ADI) Cash Plus Stock $14.8 billion $60.61 $58.54 1,463,349 06/30/2017 3.54% 4.24%
    + WGBS 05/13/2016 Takara Bio USA Holdings, Inc. (N/A) Special Conditions $18 million $0.95 $0.920 87,331 03/31/2017 3.26% 5.56%
    + STRZA 06/30/2016 Lions Gate Entertainment Corp. (LGF) Cash Plus Stock $4.4 billion $32.33 $31.31 690,821 12/31/2016 3.25% 9.57%
    + CIFC 08/19/2016 F.A.B. Partners (N/A) All Cash $333 million $11.46 $11.15 9,866 12/31/2016 2.78% 8.18%
    + CLBH 06/22/2016 First Bancorp (FBNC) All Stock $97.3 million $20.10 $19.59 1,794 03/31/2017 2.60% 4.44%
    + DANG 05/31/2016 Dangdang Holding Company Limited and Dangdang Merger Company Limited (N/A) All Cash $556 million $6.70 $6.53 504,112 12/31/2016 2.60% 7.66%
    + NHLD 04/28/2016 Fortress Biotech, Inc. (FBIO) All Cash N/A $3.25 $3.18 4,794 08/15/2016 2.20% 0.00%
    + OSHC 07/13/2016 OceanFirst Financial Corp. (OCFC) Cash Plus Stock $145.6 million $23.30 $22.80 44,476 01/31/2017 2.18% 5.14%
    + CST 08/22/2016 Alimentation Couche-Tard Inc. (N/A) All Cash $4.4 billion $48.53 $47.54 2,670,117 03/31/2017 2.08% 3.55%
    + TLN 06/03/2016 affiliates of Riverstone Holdings LLC (N/A) All Cash $5.2 billion $14.00 $13.72 732,300 12/31/2016 2.04% 6.01%
    + SCNB 06/27/2016 People’s United Financial Inc. (PBCT) All Stock $402 million $35.31 $34.66 11,009 12/31/2016 1.88% 5.53%
    + VA 04/04/2016 Alaska Air Group, Inc. (ALK) All Cash $4 billion $57.00 $55.97 232,470 01/01/2017 1.84% 5.37%
    + WWAV 07/07/2016 Danone (N/A) All Cash $12.5 billion $56.25 $55.24 2,834,149 12/31/2016 1.83% 5.38%
    + LNKD 06/13/2016 Microsoft Corporation (MSFT) All Cash $26.2 billion $196.00 $192.50 1,128,277 12/31/2016 1.82% 5.35%
    + EVER 08/08/2016 TIAA (N/A) All Cash $2.5 billion $19.50 $19.17 1,285,879 06/30/2017 1.72% 2.06%
    + EVHC 06/15/2016 AmSurg Corp. (AMSG) All Stock $7.66 billion $21.24 $20.90 1,477,290 12/31/2016 1.64% 4.82%
    + ITC 02/09/2016 Fortis Inc. (FTS.TO) Cash Plus Stock $11.3 billion $46.96 $46.20 446,407 12/31/2016 1.64% 4.82%
    + RAX 08/26/2016 affiliates of Apollo Global Management, LLC (N/A) All Cash $4.3 billion $32.00 $31.50 38,577,673 12/31/2016 1.59% 4.67%
    + CBNK 04/04/2016 Westfield Financial Inc. (WFD) All Stock $110 million $18.53 $18.24 712 12/31/2016 1.57% 4.63%
    + DSKY 12/31/2015 Dream Investment Holdings Limited (N/A) All Cash N/A $14.00 $13.79 45,157 06/30/2016 1.52% 0.00%
    + RSTI 03/16/2016 Coherent Inc. (COHR) All Cash $942 million $32.50 $32.04 57,689 12/31/2016 1.44% 4.23%
    + MDVN 08/22/2016 Pfizer Inc. (PFE) All Cash $14 billion $81.50 $80.35 7,492,352 12/31/2016 1.43% 4.21%
    + PWX 08/15/2016 Genesee & Wyoming Inc. (GWR) All Cash $126 million $25.00 $24.65 3,468 12/31/2016 1.42% 4.18%
    + AF 10/29/2015 New York Community Bancorp Inc. (NYCB) Cash Plus Stock $2 billion $15.09 $14.88 687,954 12/31/2016 1.41% 4.15%
    + HOT 11/16/2015 Marriott International, Inc. (MAR) Special Conditions $13.6 billion $79.53 $78.43 966,394 07/31/2016 1.40% 0.00%
    + ARMH 07/18/2016 SoftBank Group (SFBTY) All Cash $32 billion $67.32 $66.42 864,084 12/31/2016 1.36% 3.99%
    + SGI 08/12/2016 Hewlett Packard Enterprise Company (HPE) All Cash $275 million $7.75 $7.66 1,146,517 01/31/2017 1.17% 2.77%
    + SMT 05/26/2016 Foxconn Technology Group (N/A) All Cash N/A $4.50 $4.45 5,587 07/31/2016 1.12% 0.00%
    + YCB 05/03/2016 WesBanco Inc. (WSBC) Cash Plus Stock $221 million $38.66 $38.27 5,208 12/31/2016 1.03% 3.03%
    + SAAS 05/18/2016 NICE Systems Ltd. (NICE) All Cash $940 million $14.00 $13.87 218,897 12/31/2016 0.94% 2.76%
    + BBX 07/28/2016 BFC Financial (BFCF) All Cash $293 million $20.00 $19.82 6,629 06/30/2017 0.91% 1.09%
    + RRMS 05/31/2016 SemGroup Corporation (SEMG) All Stock $1.74 billion $25.79 $25.57 40,230 09/30/2016 0.86% 9.86%
    + FEIC 05/27/2016 Thermo Fisher Scientific, Inc. (TMO) All Cash $4.2 billion $107.50 $106.68 332,071 01/31/2017 0.77% 1.81%
    + MRD 05/16/2016 Range Resources Corporation (RRC) All Stock $4.4 billion $14.87 $14.79 1,455,880 12/31/2016 0.53% 1.57%
    + AVG 07/07/2016 Avast Software (N/A) All Cash $1.3 billion $25.00 $24.87 1,554,585 10/15/2016 0.52% 4.06%
    + FCS 11/18/2015 ON Semiconductor Corp. (ON) All Cash $2.4 billion $20.00 $19.90 1,105,824 09/01/2016 0.50% 61.14%
    + GLDC 07/19/2016 Utz Quality Foods, Inc. (N/A) All Cash $135 million $12.00 $11.94 27,863 12/31/2016 0.50% 1.48%
    + SKUL 08/24/2016 Mill Road (N/A) All Cash $196.6 million $6.35 $6.32 77,037 09/30/2016 0.47% 5.41%
    + MHGC 05/09/2016 SBE (N/A) All Cash $794 million $2.25 $2.24 38,859 12/31/2016 0.45% 1.31%
    + SQNM 07/27/2016 Laboratory Corporation of America (LH) All Cash $371 million $2.40 $2.39 850,686 12/31/2016 0.42% 1.23%
    + IMPR 07/13/2016 an affiliate of Thoma Bravo, LLC (N/A) All Cash $544 million $19.25 $19.18 108,473 12/31/2016 0.36% 1.07%
    + EDE 02/09/2016 Algonquin Power & Utilities Corp. (AQN.TO) All Cash $2.4 billion $34.00 $33.88 176,844 03/31/2017 0.35% 0.60%
    + ASEI 06/21/2016 OSI Systems, Inc. (OSIS) All Cash $269 million $37.00 $36.87 35,153 12/31/2016 0.35% 1.04%
    + PGND 08/09/2016 EQT Equity fund EQT VII (N/A) All Cash $2.35 billion $40.50 $40.36 364,427 12/31/2016 0.35% 1.02%
    + PLCM 07/08/2016 Siris Capital Group, LLC (N/A) All Cash $2 billion $12.50 $12.46 1,154,852 09/30/2016 0.32% 3.66%
    + REXI 05/23/2016 C-III Capital Partners (N/A) All Cash $270 million $9.78 $9.75 17,503 11/15/2016 0.31% 1.44%
    + EPIQ 07/27/2016 OMERS Private Equity and Harvest Partners (N/A) All Cash $1 billion $16.50 $16.45 101,423 12/31/2016 0.30% 0.89%
    + OUTR 07/25/2016 affiliates of certain funds managed by affiliates of Apollo Global Management, LLC (N/A) All Cash $1.6 billion $52.00 $51.87 317,580 09/30/2016 0.25% 2.86%
    + DRII 06/29/2016 Apollo Global Management, LLC (APO) All Cash $2.2 billion $30.25 $30.19 590,216 12/31/2016 0.20% 0.59%
    + FLTX 08/01/2016 Verizon (VZ) All Cash $2.4 billion $60.00 $59.90 401,764 12/31/2016 0.17% 0.49%
    + MFRM 08/07/2016 Steinhoff International Holdings NV (N/A) All Cash $3.8 billion $64.00 $63.90 345,927 09/30/2016 0.16% 1.79%
    + RDEN 06/16/2016 Revlon, Inc. (REV) All Cash $870 million $14.00 $13.98 127,424 12/31/2016 0.14% 0.42%
    + GK 08/16/2016 Cintas Corporation (CTAS) All Cash $2.2 billion $97.50 $97.39 335,181 02/28/2017 0.11% 0.23%
    + RLYP 07/21/2016 Galenica Group (N/A) All Cash $1.53 billion $32.00 $31.97 1,072,547 09/30/2016 0.09% 1.07%
    + SGNT 07/11/2016 Nichi-Iko Pharmaceutical Co., Ltd (N/A) All Cash $736 million $21.75 $21.73 1,293,291 03/31/2017 0.09% 0.16%
    + AXLL 06/10/2016 Westlake Chemical Corporation (WLK) All Cash $3.8 billion $33.00 $32.97 594,106 12/31/2016 0.09% 0.27%
    + PNY 10/26/2015 Duke Energy Corporation (DUK) All Cash $6.7 billion $60.00 $59.97 450,981 12/31/2016 0.05% 0.15%
    + STR 02/01/2016 Dominion Resources, Inc. (D) All Cash $4.4 billion $25.00 $24.99 621,017 12/31/2016 0.04% 0.12%
    + NTK 07/06/2016 Melrose Industries PLC (N/A) All Cash $2.8 billion $86.00 $85.99 28,882 08/31/2016 0.01% 2.12%
    + TYC 01/25/2016 Johnson Controls Inc. (JCI) All Stock $16.5 billion $43.67 $43.70 3,758,806 09/02/2016 -0.07% -6.15%
    + NATL 07/25/2016 Great American Insurance Company (N/A) All Cash $660 million $32.50 $32.56 10,776 12/31/2016 -0.18% -0.54%
    + IMS 05/03/2016 Quintiles Transnational Holdings Inc. (Q) All Stock $9 billion $29.06 $29.13 210,195 12/31/2016 -0.22% -0.66%
    + AEPI 08/25/2016 Berry Plastics Group, Inc. (BERY) All Cash $765 million $110.00 $110.33 239,722 12/31/2016 -0.30% -0.88%
    + PKY 04/29/2016 Cousins Properties Incorporated (CUZ) All Stock $1.95 billion $17.33 $17.39 620,726 12/31/2016 -0.36% -1.07%
    + ACAS 05/23/2016 Ares Capital Corporation (ARCC) Cash Plus Stock $3.4 billion $16.59 $16.68 738,060 05/31/2017 -0.55% -0.73%
    + LSBG 05/05/2016 Bar Harbor Bankshares (BHB) All Stock $143 million $17.72 $17.83 8,092 03/31/2017 -0.63% -1.07%
    + MGN 05/24/2016 Hecla Mining Co. (HL) All Stock N/A $1.27 $1.29 182,178 09/30/2016 -1.31% -14.91%
    + TIVO 04/29/2016 Rovi Corporation (ROVI) Special Conditions $1.1 billion $10.70 $10.86 3,146,230 09/30/2016 -1.47% -16.80%
    + COB 11/23/2015 Capital Bank Financial Corp. (CBF) All Stock $350 million $12.96 $13.19 6,451 06/30/2016 -1.77% 10.80%
    + FCLF 04/26/2016 First Mid-Illinois Bancshares, Inc. (FMBH) All Stock $90 million $12.17 $12.42 665 12/31/2016 -2.00% -5.88%
    + MEG 01/27/2016 Nexstar Broadcasting Group, Inc. (NXST) Special Conditions $4.6 billion $17.14 $17.55 268,887 12/15/2016 -2.34% -7.90%
    + TTHI 06/30/2016 Opko Health, Inc. (OPK) All Stock $60 million $1.42 $1.49 20,667 09/01/2016 -4.52% -549.38%
    + MWW 08/09/2016 Randstad Holding (N/A) All Cash $429 million $3.40 $3.68 2,013,999 12/31/2016 -7.61% -22.40%
    + AEGR 06/15/2016 QLT Inc. (QLTI) All Stock $267.27 million $1.46 $1.60 129,205 12/31/2016 -8.98% -26.43%
    + CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $5.00 $12.00 165,264 12/31/2016 -58.33% -171.71%

    Disclaimer: I hold long positions in Apollo Education (APOL), Monster Worldwide (MWW) and Hutchinson Technology (HTCH). Please do your own due diligence before buying or selling any securities mentioned in this article. We do not warrant the completeness or accuracy of the content or data provided in this article.

    Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria or follow me on Twitter@asifsuria

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    Insider Weekends – August 26, 2016

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    August 27, 2016 | Insider Buying | Author Asif

    Welcome to edition 323 of Insider Weekends. Insider buying increased last week with insiders buying $183.37 million of stock compared to $177.89 million in the week prior. Selling decreased with insiders selling $1.66 billion of stock last week compared to $3.01 billion in the week prior.

    Sell/Buy Ratio: The insider Sell/Buy ratio is calculated by dividing the total insider sales in a given week by total insider purchases that week. The adjusted ratio for last week decreased to 9.07. In other words, insiders sold  more than 9 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 16.94. We are calculating an adjusted ratio by removing transactions by funds and companies and trying as best as possible only to retain information about insiders and 10% owners who are not funds or companies.

    Insider Sell Buy Ratio August 26, 2016

    Insider Sell Buy Ratio August 26, 2016

    Note: As mentioned in the first post in this series, certain industries have their preferred metrics such as same store sales for retailers, funds from operations (FFO) for REITs and revenue per available room (RevPAR) for hotels that provide a better basis for comparison than simple valuation metrics. However metrics like Price/Earnings, Price/Sales and Enterprise Value/EBITDA included below should provide a good starting point for analyzing the majority of stocks.

    Notable Insider Buys:

    1. Herbalife Ltd. (HLF): $60.5

    10% Owner Carl C. Icahn acquired 2,304,683 shares of this nutrition company, paying $59.31 per share for a total amount of $136.69 million. These shares were purchased indirectly through a fund.

    We don’t often comment on purchases by 10% owners but this one was much too interesting to ignore and was another volley in the long-standing battle between Bill Ackman on the short side and Carl Icahn on the long side. Herbalife’s stock opened weak on Friday and at one point during the day was down almost 7.8% on news that Carl Icahn was considering selling his large stake in the company and that Bill Ackman had been approached to buy a large block of stock. As the day progressed, the stock recovered some of those losses. After the market closed, Mr. Icahn filed a form 4 indicating he had actually purchased an additional 2.3 million shares and released this statement.

    It has been over two years since we wrote the following about the company after a trio of insider purchases at Herbalife.

    “Herbalife is currently caught in the cross-fire between longs and passionate short-sellers like Bill Ackman who claim the stock is headed to zero and believe the company is a criminal enterprise. Following Ackman’s latest three hour presentation on the company,  the stock shot up more than 25% only to give back all of those gains and then some after the company reported weak second quarter results last week.”

    A series of tweets between an investor who is well know for his wit and an Australian hedge fund manager who is long Herbalife provides some additional color (warning: a lot of profanity in this tweet exchange).

    You can view the list of recent insider transactions for Herbalife Ltd. here.

    P/E: 20.73 Forward P/E: 11.04 Industry P/E: 31.27
    P/S: 1.27 Price/Book: 162.12 EV/EBITDA: 11.1
    Market Cap: $5.62B Avg. Daily Volume: 2,096,510 52 Week Range: $42.26 – $72.22

    2. Penske Automotive Group, Inc. (PAG): $44.35

    Chairman & CEO Roger S. Penske acquired 300,000 shares of this auto dealer, paying $42.55 per share for a total amount of $12.77 million. These shares were purchased indirectly by Penske Automotive Holdings Corp.

    Mr. Penske is showing a lot of consistency in his purchases of Penske as this is the fourth week in a row his purchases have made our list.

    You can view the list of recent insider transactions for Penske Automotive Group, Inc. here.

    P/E: 11.85 Forward P/E: 10.51 Industry P/E: 11.75
    P/S: 0.19 Price/Book: 2.22 EV/EBITDA: 12.58
    Market Cap: $3.78B Avg. Daily Volume: 845,670 52 Week Range: $29.29 – $53.28

    3. WisdomTree Investments, Inc. (WETF): $9.91

    Chief Executive Officer Jonathan L. Steinberg acquired 250,000 shares of this asset management company, paying $10.16 per share for a total amount of $2.54 million. Mr. Steinberg increased his stake by 3.50% to 7,384,001 shares with this purchase.

    This purchase caught my eye as I used to follow WisdomTree several years ago when it was still an OTC Bulletin Board stock. The stock eventually listed on Nasdaq and went on to increase its assets under management (AUM) to nearly $60 billion. The stock appreciated and peaked over $26 last August.

    The company is considered an ETF pure play because it has over 100 ETFs and is not bogged down by a large portfolio of mutual funds that has put a damper on traditional asset management companies like Janus Capital (JNS) and Franklin Resources (BEN). This has led many investors to believe that the company would be eventually acquired and hence it often tends to trade at a premium to other asset management companies.

    One of the reasons WisdomTree saw its assets under management climb to $60 billion was the popularity of its currency hedged ETFs that gave investors exposure to Europe and Japan. As the popularity of these ETFs has waned over the last year, WisdomTree has seen its AUM decline and the company now has $38.34 billion in AUM. The stock decline reflects this large drop in AUM.

    You can view the list of recent insider transactions for WisdomTree Investments, Inc. here.

    P/E: 22.99 Forward P/E: 34.17 Industry P/E: 17.16
    P/S: 4.83 Price/Book: 6.37 EV/EBITDA: 9.78
    Market Cap: $1.33B Avg. Daily Volume: 2,613,670 52 Week Range: $8.7 – $22.33

    4. Western Refining, Inc. (WNR): $24.03

    Chief Executive Officer Jeff A. Stevens acquired 100,000 shares of this oil and gas pipelines company, paying $23.25 per share for a total amount of $2.32 million. Mr. Stevens increased his stake by 2.89% to 3,556,456 shares with this purchase.

    You can view the list of recent insider transactions for Western Refining, Inc. here.

    P/E: 8.54 Forward P/E: 14.14 Industry P/E: 12.03
    P/S: 0.31 Price/Book: 1.51 EV/EBITDA: 5.52
    Market Cap: $2.61B Avg. Daily Volume: 3,479,130 52 Week Range: $18.14 – $47.55

    5. Chesapeake Energy Corporation (CHK): $6.4

    Director Archie W. Dunham acquired 350,000 shares of this oil and natural gas producer, paying $6.07 per share for a total amount of $2.13 million. Mr. Dunham increased his stake by 12.60% to 3,127,951 shares with this purchase.

    You can view the list of recent insider transactions for Chesapeake Energy Corporation here.

    P/E: N/A Forward P/E: 7.71 Industry P/E: 15.83
    P/S: 0.5 Price/Book: N/A EV/EBITDA: 19.15
    Market Cap: $4.91B Avg. Daily Volume: 41,028,200 52 Week Range: $1.5 – $9.55

    You can view the full list of purchases from this Insider Buying page.

    Notable Insider Sales:

    1. Facebook, Inc. (FB): $124.96

    Shares of Facebook were sold by 2 insiders:

    • Director Jan Koum sold 1,160,914 shares for $124.34, generating $144.35 million from the sale. These shares were sold indirectly through a trust.
    • VP and General Counsel Colin Stretch sold 10,350 shares for $125.00, generating $1.29 million from the sale.

    You can view the list of recent insider transactions for Facebook, Inc. here.

    P/E: 59.73 Forward P/E: 24.79 Industry P/E: 28.79
    P/S: 16.05 Price/Book: 7.04 EV/EBITDA: 30.3
    Market Cap: $358.84B Avg. Daily Volume: 19,932,700 52 Week Range: $85.72 – $128.33

    2. Viacom, Inc. (VIA): $45.92

    Director Philippe P. Dauman sold 680,098 shares of this media and entertainment company for $41.76, generating $28.39 million from the sale.

    You can view the list of recent insider transactions for Viacom, Inc. here.

    P/E: 8.84 Forward P/E: N/A Industry P/E: N/A
    P/S: 1.41 Price/Book: 4.49 EV/EBITDA: 8.76
    Market Cap: $18.21B Avg. Daily Volume: 69,241 52 Week Range: $33.88 – $54.69

    3. Juniper Networks, Inc. (JNPR): $23.28

    Director Scott Kriens sold 750,000 shares of this network infrastructure company for $23.46, generating $17.59 million from the sale. These shares were sold indirectly through a trust.

    You can view the list of recent insider transactions for Juniper Networks, Inc. here.

    P/E: 14.47 Forward P/E: 10.78 Industry P/E: 19.85
    P/S: 1.83 Price/Book: 1.92 EV/EBITDA: 8.16
    Market Cap: $8.92B Avg. Daily Volume: 3,130,630 52 Week Range: $21.18 – $32.39

    4. Nevro Corp. (NVRO): $96.4

    Shares of this medical device company were sold by 3 insiders:

    • Director Wilfred E. Jaeger sold 154,840 shares for $97.79, generating $15.14 million from the sale. These shares were sold indirectly by Three Arch Partners IV, L.P.
    • Director Michael F. Demane sold 13,334 shares for $99.00, generating $1.32 million from the sale. 6,668 of these shares were sold indirectly through various trusts.
    • VP, Quality Doug Alleavitch sold 3,000 shares for $100.00, generating $300,000 from the sale. 2,000 of these shares were sold indirectly by Mr. Doug’s spouse.

    You can view the list of recent insider transactions for Nevro Corp. here.

    P/E: N/A Forward P/E: N/A Industry P/E: N/A
    P/S: 18.48 Price/Book: 10.91 EV/EBITDA: -58.19
    Market Cap: $2.75B Avg. Daily Volume: 556,072 52 Week Range: $36.51 – $100.33

    5. Evercore Partners Inc. (EVR): $51.61

    Shares of this investment banking and asset management company were sold by 2 insiders:

    • President and CEO Ralph Schlosstein sold 195,212 shares for $51.19, generating $9.99 million from the sale.
    • CEO EVR Partners International Andrew Sibbald sold 125,000 shares for $51.21, generating $6.4 million from the sale.

    You can view the list of recent insider transactions for Evercore Partners Inc. here.

    P/E: 40.26 Forward P/E: 12.9 Industry P/E: 17.16
    P/S: 1.5 Price/Book: 4.88 EV/EBITDA: N/A
    Market Cap: $2.00B Avg. Daily Volume: 432,327 52 Week Range: $40.35 – $60.63

    You can view the full list of sales from this Insider Sales page.

    Disclaimer: I do not have any positions in any of the stocks mentioned in this article. Please do your own due diligence before buying or selling any securities mentioned in this article. We do not warrant the completeness or accuracy of the content or data provided in this article.

    Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria or follow me on Twitter @asifsuria

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    Merger Arbitrage Mondays – August 22, 2016

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    August 22, 2016 | Merger Arbitrage | Author Asif

    Merger activity remained the same with four new deals announced and four deals closing.

    You can find all the active deals listed below in our Merger Arbitrage Tool that automatically updates itself during market hours.

    Deal Statistics:

    Total Number of Deals Closed in 2016 137
    Total Number of Deals Not Completed in 2016 10
    Total Number of Pending Deals
    Cash Deals 60
    Stock Deals 19
    Stock & Cash Deals 12
    Special Conditions 8
    Total Number of Pending Deals 99
    Total Deal Size $988.67 billion

    New Deals:

    1. The acquisition of Providence and Worcester Railroad Company (PWX) by Genesee & Wyoming (GWR) for $126 million or $25.00 per share in cash.
    2. The acquisition of G&K Services (GK) by Cintas Corporation (CTAS) for $2.2 billion or $97.50 per share in cash.
    3. The acquisition of Cardinal Financial (CFNL) by United Bankshares (UBSI) for $912 million in an all stock deal. Under the terms of the agreement, shareholders of Cardinal Financial will receive 0.71 of United’s shares for each share of Cardinal.
    4. The acquisition of SunEdison Semiconductor Limited (SEMI) by GlobalWafers for $683 million or $12.00 per share in cash.

    Deal Updates:

    1. On August 17, 2016, Johnson Controls (JCI) shareholders voted to approve the previously announced merger with Tyco (TYC). Tyco shareholders have also approved the transaction.The merger with Tyco is expected to be completed on September 2, 2016.
    2. On August 17, 2016, Shareholders of Qlik Technologies (QLIK) approved the sale of the company to private equity firm Thoma Bravo. All approvals required to complete the transaction have now been received and the transaction is expected to close on August 22.
    3. On August 18, 2016, Skullcandy’s (SKUL) Board of Directors , after consultation with its outside legal counsel and financial advisors, determined that the August 17 Mill Road Proposal constitutes a “Superior Proposal” as defined in Skullcandy’s previously announced definitive merger agreement, as amended, with Incipio. Also on August 17, 2016, pursuant to the terms of the Incipio Agreement, Skullcandy delivered notice to Incipio of the Skullcandy Board’s determination and intention, at or after 12:00 a.m., Eastern Time, on August 23, 2016, to terminate the Incipio Agreement and change its recommendation to Skullcandy’s stockholders to recommend the August 17 Mill Road Proposal, subject to Incipio’s rights pursuant to the Incipio Agreement to negotiate with and make revised proposals to Skullcandy during that period.
    4. On August 11, 2016, Analysts said that Samsung, Hitachi and Tokyo Electron will likely mount a regulatory attack on Lam Research’s (LRCX) $10.6 billion bid to acquire KLA-Tencor (KLAC), but that’s only if U.S. regulators don’t kill the deal that would unite two of the largest makers of chip-manufacturing equipment.
    5. August 22, 2016: According to Fidelity & Guaranty Life (FGL)’s Quarterly Report filed on August 2, 2016, Anbang continues to work on securing the required regulatory approvals and the parties are committed to securing such approvals, however, the closing of the FGL Merger, and the timing thereof, is subject to the regulatory review and approval process. In the event that the Merger Agreement is terminated, FGL may be required to pay a termination fee to Anbang and its subsidiaries of $51. We have made this deal Active again.

    Closed Deals:

    1. The acquisition of QLogic (QLGC) by Cavium (CAVM) on August 16, 2016. It took 62 days for this deal to be completed.
    2. The acquisition of Marketo (MKTO) by Vista Equity Partners on August 16, 2016. It took 77 days for this deal to be completed.
    3. The acquisition of FirstMerit Corporation (FMER) by Huntington Bancshares Incorporated (HBAN) on August 17, 2016. It took 204 days for this deal to be completed.
    4. The acquisition of Xura (MESG) by Siris Capital Group on August 19, 2016. It took 88 days for this deal to be completed.

    Top 10 deals with largest spreads:

    Symbol Announced

    Date

    Acquiring

    Company

    Closing

    Price

    Last

    Price

    Closing

    Date

    Profit Annualized

    Profit

    HTCH 11/02/2015 TDK Corporation (N/A) $4.00 $1.57 09/30/2016 154.78% 1448.55%
    ALR 02/01/2016 Abbott Laboratories (ABT) $56.00 $40.47 12/31/2016 38.37% 106.92%
    CI 07/24/2015 Anthem, Inc. (ANTM) $170.13 $133.00 03/31/2017 27.92% 46.11%
    HUM 07/03/2015 Aetna Inc. (AET) $225.57 $178.00 12/31/2016 26.72% 74.46%
    RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) $9.00 $7.75 12/31/2016 16.13% 44.94%
    FGL 11/09/2015 Anbang Insurance Group Co., Ltd. (N/A) $26.80 $23.20 06/30/2016 15.52% -106.86%
    LXK 04/19/2016 consortium of investors led by Apex Technology Co., Ltd. (Apex) and PAG Asia Capital (PAG) (N/A) $40.50 $35.14 12/31/2016 15.25% 42.50%
    CVT 04/18/2016 affiliates of Vista Equity Partners (N/A) $36.00 $32.08 09/30/2016 12.22% 114.36%
    IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) $38.90 $34.68 12/31/2016 12.17% 33.90%
    APOL 02/08/2016 A consortium of investors including The Vistria Group, LLC, funds affiliated with Apollo Global Management, LLC and and Najafi Companies (N/A) $10.00 $8.93 08/31/2016 11.98% 485.94%

    List of all pending deals:

    Symbol Announced

    Date

    Acquiring

    Company

    Deal

    Type

    Closing

    Value

    Closing

    Price

    Last

    Price

    Volume Closing

    Date

    Profit Annu.

    Profit

    + HTCH 11/02/2015 TDK Corporation (N/A) Special Conditions $126 million $4.00 $1.57 235,508 09/30/2016 154.78% 1448.55%
    + ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.8 billion $56.00 $40.47 677,886 12/31/2016 38.37% 106.92%
    + CI 07/24/2015 Anthem, Inc. (ANTM) Cash Plus Stock $54.2 billion $170.13 $133.00 1,077,774 03/31/2017 27.92% 46.11%
    + HUM 07/03/2015 Aetna Inc. (AET) Cash Plus Stock $37 billion $225.57 $178.00 420,034 12/31/2016 26.72% 74.46%
    + RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) All Cash $17.2 billion $9.00 $7.75 12,362,734 12/31/2016 16.13% 44.94%
    + FGL 11/09/2015 Anbang Insurance Group Co., Ltd. (N/A) All Cash N/A $26.80 $23.20 67,805 06/30/2016 15.52% 0.00%
    + LXK 04/19/2016 consortium of investors led by Apex Technology Co., Ltd. (Apex) and PAG Asia Capital (PAG) (N/A) All Cash $3.6 billion $40.50 $35.14 384,405 12/31/2016 15.25% 42.50%
    + CVT 04/18/2016 affiliates of Vista Equity Partners (N/A) All Cash $1.65 billion $36.00 $32.08 283,422 09/30/2016 12.22% 114.36%
    + IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) All Cash $6 billion $38.90 $34.68 336,754 12/31/2016 12.17% 33.90%
    + APOL 02/08/2016 A consortium of investors including The Vistria Group, LLC, funds affiliated with Apollo Global Management, LLC and and Najafi Companies (N/A) All Cash $1.1 billion $10.00 $8.93 420,527 08/31/2016 11.98% 485.94%
    + WGBS 05/13/2016 Takara Bio USA Holdings, Inc. (N/A) Special Conditions $18 million $0.95 $0.850 356,509 03/31/2017 11.76% 19.43%
    + WR 05/31/2016 Great Plains Energy Incorporated (GXP) Special Conditions $12.2 billion $60.00 $53.89 613,080 03/31/2017 11.34% 18.73%
    + KLAC 10/21/2015 Lam Research Corporation (LRCX) Cash Plus Stock $10.6 billion $78.60 $70.95 1,636,694 12/31/2016 10.78% 30.02%
    + TSL 08/01/2016 Investor consortium comprising Mr. Gao and other entities. (N/A) All Cash $2.3 billion $11.60 $10.58 1,092,286 03/31/2017 9.64% 15.92%
    + AIXG 05/23/2016 Fujian Grand Chip Investment Fund LP (N/A) All Cash $748.36 million $6.66 $6.22 7,427 12/31/2016 7.07% 19.71%
    + VAL 03/20/2016 The Sherwin-Williams Company (SHW) All Cash $11.3 billion $113.00 $106.02 299,493 03/31/2017 6.58% 10.87%
    + IOC 07/21/2016 Exxon Mobil Corporation (XOM) Special Conditions $2.5 billion $52.07 $49.03 288,470 09/30/2016 6.20% 58.03%
    + SCTY 08/01/2016 Tesla Motors (TSLA) All Stock $5.4 billion $24.75 $23.50 1,482,459 04/30/2017 5.32% 7.74%
    + AMTG 02/26/2016 Apollo Commercial Real Estate Finance, Inc. (ARI) Cash Plus Stock $641 million $14.31 $13.60 86,285 08/15/2016 5.19% 0.00%
    + MGN 05/24/2016 Hecla Mining Co. (HL) All Stock N/A $1.50 $1.43 205,217 09/30/2016 4.85% 45.40%
    + SEMI 08/17/2016 GlobalWafers Co., Ltd. (N/A) All Cash $683 million $12.00 $11.48 2,478,236 06/30/2017 4.53% 5.30%
    + PBCP 06/02/2016 Prudential Bancorp, Inc. (PBIP) Special Conditions $38.1 million $11.28 $10.80 N/A 12/31/2016 4.44% 12.38%
    + CFNL 08/18/2016 United Bankshares, Inc. (UBSI) All Stock $912 million $27.48 $26.37 946,075 06/30/2017 4.22% 4.94%
    + NHLD 04/28/2016 Fortress Biotech, Inc. (FBIO) All Cash N/A $3.25 $3.12 95,303 08/15/2016 4.17% 0.00%
    + CKEC 03/03/2016 AMC Entertainment Holdings, Inc. (AMC) All Cash $1.1 billion $33.06 $31.77 107,159 12/31/2016 4.06% 11.31%
    + YDKN 07/21/2016 F.N.B. Corporation (FNB) All Stock $1.4 billion $26.61 $25.70 506,050 03/31/2017 3.55% 5.86%
    + STRZA 06/30/2016 Lions Gate Entertainment Corp. (LGF) Cash Plus Stock $4.4 billion $32.54 $31.48 689,309 12/31/2016 3.36% 9.37%
    + LLTC 07/26/2016 Analog Devices, Inc. (ADI) Cash Plus Stock $14.8 billion $60.89 $58.91 1,322,648 06/30/2017 3.36% 3.93%
    + DSKY 12/31/2015 Dream Investment Holdings Limited (N/A) All Cash N/A $14.00 $13.60 46,791 06/30/2016 2.94% 0.00%
    + STJ 04/28/2016 Abbott Laboratories (ABT) Cash Plus Stock $25 billion $85.27 $82.98 2,880,370 12/31/2016 2.76% 7.70%
    + JOY 07/21/2016 Komatsu America Corp. (N/A) All Cash $3.7 billion $28.30 $27.57 1,179,790 06/30/2017 2.65% 3.10%
    + DANG 05/31/2016 Dangdang Holding Company Limited and Dangdang Merger Company Limited (N/A) All Cash $556 million $6.70 $6.53 333,088 12/31/2016 2.60% 7.25%
    + SQNM 07/27/2016 Laboratory Corporation of America (LH) All Cash $371 million $2.40 $2.34 3,031,246 12/31/2016 2.56% 7.14%
    + OSHC 07/13/2016 OceanFirst Financial Corp. (OCFC) Cash Plus Stock $145.6 million $22.82 $22.28 44,735 01/31/2017 2.44% 5.50%
    + LNKD 06/13/2016 Microsoft Corporation (MSFT) All Cash $26.2 billion $196.00 $191.50 888,992 12/31/2016 2.35% 6.55%
    + SCNB 06/27/2016 People’s United Financial Inc. (PBCT) All Stock $402 million $34.73 $33.97 108,290 12/31/2016 2.24% 6.25%
    + WWAV 07/07/2016 Danone (N/A) All Cash $12.5 billion $56.25 $55.15 2,792,203 12/31/2016 1.99% 5.56%
    + VA 04/04/2016 Alaska Air Group, Inc. (ALK) All Cash $4 billion $57.00 $55.97 196,694 01/01/2017 1.84% 5.09%
    + TLN 06/03/2016 affiliates of Riverstone Holdings LLC (N/A) All Cash $5.2 billion $14.00 $13.76 805,797 12/31/2016 1.74% 4.86%
    + EVER 08/08/2016 TIAA (N/A) All Cash $2.5 billion $19.50 $19.19 1,474,172 06/30/2017 1.62% 1.89%
    + ARMH 07/18/2016 SoftBank Group (SFBTY) All Cash $32 billion $67.32 $66.27 801,186 12/31/2016 1.58% 4.41%
    + RSTI 03/16/2016 Coherent Inc. (COHR) All Cash $942 million $32.50 $32.03 54,887 12/31/2016 1.47% 4.09%
    + ITC 02/09/2016 Fortis Inc. (FTS.TO) Cash Plus Stock $11.3 billion $47.59 $46.90 416,729 12/31/2016 1.46% 4.07%
    + EVHC 06/15/2016 AmSurg Corp. (AMSG) All Stock $7.66 billion $21.59 $21.28 1,615,291 12/31/2016 1.44% 4.01%
    + PWX 08/15/2016 Genesee & Wyoming Inc. (GWR) All Cash $126 million $25.00 $24.66 41,235 12/31/2016 1.38% 3.84%
    + SMT 05/26/2016 Foxconn Technology Group (N/A) All Cash N/A $4.50 $4.44 636 07/31/2016 1.35% 0.00%
    + SAAS 05/18/2016 NICE Systems Ltd. (NICE) All Cash $940 million $14.00 $13.82 266,794 12/31/2016 1.30% 3.63%
    + YCB 05/03/2016 WesBanco Inc. (WSBC) Cash Plus Stock $221 million $38.15 $37.67 5,065 12/31/2016 1.28% 3.57%
    + FLTX 08/01/2016 Verizon (VZ) All Cash $2.4 billion $60.00 $59.32 629,122 12/31/2016 1.15% 3.19%
    + CBNK 04/04/2016 Westfield Financial Inc. (WFD) All Stock $110 million $18.48 $18.27 864 12/31/2016 1.14% 3.18%
    + RRMS 05/31/2016 SemGroup Corporation (SEMG) All Stock $1.74 billion $26.17 $25.88 37,315 09/30/2016 1.13% 10.61%
    + CLBH 06/22/2016 First Bancorp (FBNC) All Stock $97.3 million $18.96 $18.75 2,098 03/31/2017 1.11% 1.83%
    + BBX 07/28/2016 BFC Financial (BFCF) All Cash $293 million $20.00 $19.81 3,554 06/30/2017 0.96% 1.12%
    + AF 10/29/2015 New York Community Bancorp Inc. (NYCB) Cash Plus Stock $2 billion $14.91 $14.77 326,616 12/31/2016 0.95% 2.64%
    + FEIC 05/27/2016 Thermo Fisher Scientific, Inc. (TMO) All Cash $4.2 billion $107.50 $106.52 164,754 01/31/2017 0.92% 2.07%
    + EPIQ 07/27/2016 OMERS Private Equity and Harvest Partners (N/A) All Cash $1 billion $16.50 $16.35 381,184 12/31/2016 0.92% 2.56%
    + FCS 11/18/2015 ON Semiconductor Corp. (ON) All Cash $2.4 billion $20.00 $19.82 565,800 07/21/2016 0.91% 0.00%
    + SGI 08/12/2016 Hewlett Packard Enterprise Company (HPE) All Cash $275 million $7.75 $7.69 1,311,195 01/31/2017 0.78% 1.76%
    + GLDC 07/19/2016 Utz Quality Foods, Inc. (N/A) All Cash $135 million $12.00 $11.91 12,921 12/31/2016 0.76% 2.11%
    + DRII 06/29/2016 Apollo Global Management, LLC (APO) All Cash $2.2 billion $30.25 $30.06 2,987,818 12/31/2016 0.63% 1.76%
    + AVG 07/07/2016 Avast Software (N/A) All Cash $1.3 billion $25.00 $24.85 588,357 10/15/2016 0.60% 4.08%
    + IMPR 07/13/2016 an affiliate of Thoma Bravo, LLC (N/A) All Cash $544 million $19.25 $19.14 358,425 12/31/2016 0.57% 1.60%
    + MRD 05/16/2016 Range Resources Corporation (RRC) All Stock $4.4 billion $15.15 $15.07 818,189 12/31/2016 0.53% 1.48%
    + FCLF 04/26/2016 First Mid-Illinois Bancshares, Inc. (FMBH) All Stock $90 million $12.36 $12.30 11,840 12/31/2016 0.49% 1.36%
    + PLCM 07/08/2016 Siris Capital Group, LLC (N/A) All Cash $2 billion $12.50 $12.44 2,308,437 09/30/2016 0.48% 4.51%
    + TIVO 04/29/2016 Rovi Corporation (ROVI) Special Conditions $1.1 billion $10.70 $10.65 940,852 09/30/2016 0.47% 4.39%
    + RDEN 06/16/2016 Revlon, Inc. (REV) All Cash $870 million $14.00 $13.94 203,967 12/31/2016 0.43% 1.20%
    + EDE 02/09/2016 Algonquin Power & Utilities Corp. (AQN.TO) All Cash $2.4 billion $34.00 $33.86 155,730 03/31/2017 0.41% 0.68%
    + REXI 05/23/2016 C-III Capital Partners (N/A) All Cash $270 million $9.78 $9.74 13,216 11/15/2016 0.41% 1.76%
    + FMD 06/02/2016 FP Resources USA Inc. (N/A) All Cash $65.5 million $5.05 $5.03 9,080 09/30/2016 0.40% 3.72%
    + GK 08/16/2016 Cintas Corporation (CTAS) All Cash $2.2 billion $97.50 $97.13 326,494 02/28/2017 0.38% 0.73%
    + ASEI 06/21/2016 OSI Systems, Inc. (OSIS) All Cash $269 million $37.00 $36.89 30,299 12/31/2016 0.30% 0.83%
    + OUTR 07/25/2016 affiliates of certain funds managed by affiliates of Apollo Global Management, LLC (N/A) All Cash $1.6 billion $52.00 $51.85 942,831 09/30/2016 0.29% 2.71%
    + NATL 07/25/2016 Great American Insurance Company (N/A) All Cash $660 million $32.50 $32.42 14,190 12/31/2016 0.25% 0.69%
    + PNY 10/26/2015 Duke Energy Corporation (DUK) All Cash $6.7 billion $60.00 $59.88 152,148 12/31/2016 0.20% 0.56%
    + RLYP 07/21/2016 Galenica Group (N/A) All Cash $1.53 billion $32.00 $31.96 1,227,714 09/30/2016 0.13% 1.17%
    + MFRM 08/07/2016 Steinhoff International Holdings NV (N/A) All Cash $3.8 billion $64.00 $63.92 282,801 09/30/2016 0.13% 1.17%
    + DWA 04/28/2016 NBCUniversal (N/A) All Cash $3.8 billion $41.00 $40.96 574,695 12/31/2016 0.10% 0.27%
    + AXLL 06/10/2016 Westlake Chemical Corporation (WLK) All Cash $3.8 billion $33.00 $32.97 659,432 12/31/2016 0.09% 0.25%
    + HOT 11/16/2015 Marriott International, Inc. (MAR) Special Conditions $13.6 billion $79.53 $79.51 1,261,865 07/31/2016 0.03% 0.00%
    + QLIK 06/02/2016 Thoma Bravo, LLC (N/A) All Cash $3 billion $30.50 $30.50 3,271,964 08/22/2016 0.00% 0.00%
    + HTWR 06/27/2016 Medtronic plc (MDT) All Cash $1.1 billion $58.00 $58.00 157,429 10/28/2016 0.00% 0.00%
    + SGNT 07/11/2016 Nichi-Iko Pharmaceutical Co., Ltd (N/A) All Cash $736 million $21.75 $21.75 270,113 03/31/2017 0.00% 0.00%
    + NTK 07/06/2016 Melrose Industries PLC (N/A) All Cash $2.8 billion $86.00 $86.00 57,259 08/31/2016 0.00% 0.00%
    + PKY 04/29/2016 Cousins Properties Incorporated (CUZ) All Stock $1.95 billion $17.10 $17.13 650,849 12/31/2016 -0.18% -0.51%
    + PGND 08/09/2016 EQT Equity fund EQT VII (N/A) All Cash $2.35 billion $40.50 $40.59 252,065 12/31/2016 -0.22% -0.62%
    + STR 02/01/2016 Dominion Resources, Inc. (D) All Cash $4.4 billion $25.00 $25.07 709,288 12/31/2016 -0.28% -0.78%
    + TYC 01/25/2016 Johnson Controls Inc. (JCI) All Stock $16.5 billion $44.80 $44.96 2,884,533 09/02/2016 -0.35% -11.45%
    + IMS 05/03/2016 Quintiles Transnational Holdings Inc. (Q) All Stock $9 billion $28.82 $28.97 466,702 12/31/2016 -0.52% -1.45%
    + ACAS 05/23/2016 Ares Capital Corporation (ARCC) Cash Plus Stock $3.4 billion $16.43 $16.54 912,336 05/31/2017 -0.64% -0.83%
    + MHGC 05/09/2016 SBE (N/A) All Cash $794 million $2.25 $2.27 36,071 12/31/2016 -0.88% -2.45%
    + LSBG 05/05/2016 Bar Harbor Bankshares (BHB) All Stock $143 million $17.45 $17.65 10,830 03/31/2017 -1.11% -1.83%
    + COB 11/23/2015 Capital Bank Financial Corp. (CBF) All Stock $350 million $12.58 $12.96 16,110 06/30/2016 -2.92% 20.10%
    + MEG 01/27/2016 Nexstar Broadcasting Group, Inc. (NXST) Special Conditions $4.6 billion $17.14 $17.79 419,605 12/15/2016 -3.65% -11.60%
    + TTHI 06/30/2016 Opko Health, Inc. (OPK) All Stock $60 million $1.53 $1.60 30,206 12/31/2016 -4.16% -11.58%
    + SKUL 06/24/2016 Incipio LLC (N/A) All Cash $188.6 million $6.10 $6.42 43,504 09/30/2016 -4.98% -46.65%
    + AEGR 06/15/2016 QLT Inc. (QLTI) All Stock $267.27 million $1.45 $1.53 85,707 12/31/2016 -5.48% -15.28%
    + MWW 08/09/2016 Randstad Holding (N/A) All Cash $429 million $3.40 $3.78 5,404,605 12/31/2016 -10.05% -28.01%
    + CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $5.13 $11.80 317,799 12/31/2016 -56.56% -157.59%

    Disclaimer: I hold long positions in Apollo Education (APOL), Monster Worldwide (MWW) and Hutchinson Technology (HTCH). Please do your own due diligence before buying or selling any securities mentioned in this article. We do not warrant the completeness or accuracy of the content or data provided in this article.

    Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria or follow me on Twitter@asifsuria

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    Insider Weekends – August 19, 2016

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    August 21, 2016 | Insider Buying | Author Asif

    Welcome to edition 322 of Insider Weekends. Insider buying increased last week with insiders buying $177.89 million of stock compared to $100.55 million in the week prior. Selling also increased with insiders selling $3.01 billion of stock last week compared to $1.91 billion in the week prior.

    Sell/Buy Ratio: The insider Sell/Buy ratio is calculated by dividing the total insider sales in a given week by total insider purchases that week. The adjusted ratio for last week decreased to 16.94. In other words, insiders sold  17 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 19.04. We are calculating an adjusted ratio by removing transactions by funds and companies and trying as best as possible only to retain information about insiders and 10% owners who are not funds or companies.

    Insider Sell Buy Ratio August 19, 2016

    Insider Sell Buy Ratio August 19, 2016

    Note: As mentioned in the first post in this series, certain industries have their preferred metrics such as same store sales for retailers, funds from operations (FFO) for REITs and revenue per available room (RevPAR) for hotels that provide a better basis for comparison than simple valuation metrics. However metrics like Price/Earnings, Price/Sales and Enterprise Value/EBITDA included below should provide a good starting point for analyzing the majority of stocks.

    Notable Insider Buys:

    1. Medpace Holdings, Inc. (MEDP): $28.53

    Shares of this scientifically-driven outsourced clinical development services provider were acquired by 2 insiders:

    • President & CEO August J. Troendle acquired 879,565 shares, paying $23.06 per share for a total amount of $20.28 million. Mr. Troendle increased his stake by 257.29% to 1,221,416 shares with this purchase. 869,565 of these shares were purchased during the IPO and 10,000 shares were purchased indirectly for Mr. Troendle’s son.
    • Sr. Vice President, Operations Susan E. Burwig acquired 19,211 shares, paying $29.21 per share for a total amount of $561,082.

    Medpace priced at the higher end of its IPO range of $20 to $23 on August 11th and was up over 30% from its IPO price over the next three days before settling down for a gain of 24% through the end of last week. The 10,000 shares purchase Dr. Troendle made for his son was at $27.98/share, well above the IPO price.

    Dr. Troendle founded Medpace in 1992 and it is interesting that the company is going public 24 years later with the founder still at the helm. For a company that is no longer a spring chicken, revenue for the first six months of 2016 grew over 20% when compared to the same period last year. You can read the full S-1 filing here.

    You can view the list of recent insider transactions for Medpace Holdings, Inc. here.

    P/E: N/A Forward P/E: N/A Industry P/E: N/A
    P/S: 2.61 Price/Book: 2.14 EV/EBITDA: 12.9
    Market Cap: $931.28M Avg. Daily Volume: 419,150 52 Week Range: $27.13 – $29.98

    2. Penske Automotive Group, Inc. (PAG): $42.57

    Chairman & CEO Roger S. Penske acquired 50,000 shares of this auto dealer, paying $41.36 per share for a total amount of $2.07 million. These shares were purchased indirectly by Penske Automotive Holdings Corp.

    This is the third week in a row purchases by the CEO have made our list of notable insider purchases.

    You can view the list of recent insider transactions for Penske Automotive Group, Inc. here.

    P/E: 11.37 Forward P/E: 10.09 Industry P/E: 12.8
    P/S: 0.18 Price/Book: 2.16 EV/EBITDA: 12.35
    Market Cap: $3.63B Avg. Daily Volume: 807,055 52 Week Range: $29.29 – $53.28

    3. Cavium, Inc. (CAVM): $55.03

    Shares of this semiconductor company were acquired by 2 insiders:

    • Chief Operating Officer Muhammad Raghib Hussain acquired 20,000 shares, paying $51.85 per share for a total amount of $1.04 million. These shares were purchased indirectly through various trusts.
    • VP Finance & Admin CFO Arthur D. Chadwick acquired 10,000 shares, paying $51.94 per share for a total amount of $519,400. Mr. Chadwick increased his stake by 10.77% to 102,845 shares with this purchase.

    You can view the list of recent insider transactions for Cavium, Inc. here.

    P/E: N/A Forward P/E: 20.77 Industry P/E: 42.03
    P/S: 7.4 Price/Book: 8.13 EV/EBITDA: 80.56
    Market Cap: $3.19B Avg. Daily Volume: 1,520,550 52 Week Range: $35.9 – $73.95

    4. Cheniere Energy, Inc. (LNG): $45

    President and CEO Jack A. Fusco acquired 34,223 shares of this liquefied natural gas company, paying $43.83 per share for a total amount of $1.49 million. Mr. Fusco increased his stake by 11.84% to 323,292 shares with this purchase. 17,111 of these shares were purchased indirectly by Fusco Energy Investments, LLP.

    You can view the list of recent insider transactions for Cheniere Energy, Inc. here.

    P/E: N/A Forward P/E: 121.62 Industry P/E: 25.53
    P/S: 26.58 Price/Book: N/A EV/EBITDA: -125.58
    Market Cap: $10.60B Avg. Daily Volume: 2,430,290 52 Week Range: $22.8 – $64.45

    5. LB Foster Co. (FSTR): $11.31

    Shares of this railroads company were acquired by 3 insiders:

    • Director Bradley Vizi acquired 110,272 shares, paying $10.34 per share for a total amount of $1.14 million. These shares were purchased indirectly by Legion Partners, L.P.
    • Director Robert S. Purgason acquired 10,000 shares, paying $11.24 per share for a total amount of $112,400. Mr. Purgason increased his stake by 55.82% to 27,915 shares with this purchase.
    • President and CEO Robert P. Bauer acquired 3,000 shares, paying $9.56 per share for a total amount of $28,690. Mr. Bauer increased his stake by 4.56% to 68,850 shares with this purchase. 2,000 of these shares were purchased indirectly through a trust.

    You can view the list of recent insider transactions for LB Foster Co. here.

    P/E: N/A Forward P/E: 23.56 Industry P/E: 18.09
    P/S: 0.21 Price/Book: 0.65 EV/EBITDA: 6.21
    Market Cap: $117.44M Avg. Daily Volume: 103,888 52 Week Range: $8.8 – $20.77

    You can view the full list of purchases from this Insider Buying page.

    Notable Insider Sales:

    1. Activision Blizzard, Inc. (ATVI): $39.98

    Shares of this video game software company were sold by 4 insiders:

    • Director Brian G. Kelly sold 8,928,376 shares for $40.51, generating $361.69 million, from the sale. These shares were sold indirectly through various trusts and other entities.
    • President and CEO Robert A. Kotick sold 8,571,624 shares for $40.51, generating $347.24 million from the sale. 3,982,849 of these shares were sold indirectly by ASAC II LLC.
    • Chief Operating Officer Thomas Tippl sold 44,427 shares for $41.83, generating $1.86 million from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
    • Chief Executive Officer, King Riccardo Zacconi sold 19,761 shares for $39.63, generating $783,097 from the sale. These shares were sold as a result of exercising options immediately prior to the sale.

    You can view the list of recent insider transactions for Activision Blizzard, Inc. here.

    P/E: 40.26 Forward P/E: 18.51 Industry P/E: 37.36
    P/S: 5.53 Price/Book: 3.47 EV/EBITDA: 21.33
    Market Cap: $29.64B Avg. Daily Volume: 9,624,320 52 Week Range: $24.04 – $43.05

    2. Wingstop Inc. (WING): $31.01

    Director Neal K. Aronson sold 6,000,000 shares of this restaurant chain for $28.50, generating $171 million from the sale. These shares were sold indirectly by by RC II WS LLC.

    You can view the list of recent insider transactions for Wingstop Inc. here.

    P/E: 59.07 Forward P/E: 50.02 Industry P/E: N/A
    P/S: 10.78 Price/Book: N/A EV/EBITDA: 31.68
    Market Cap: $890.86M Avg. Daily Volume: 359,609 52 Week Range: $20.31 – $33.1

    3. World Wrestling Entertainment Inc. (WWE): $20.93

    Shares of this entertainment company were sold by 3 insiders:

    • Chief Executive Officer Vincent K. McMahon sold 1,547,372 shares for $19.32, generating $29.89 million from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
    • Executive Producer & Chief Glo Kevin Dunn sold 56,000 shares for $20.55, generating $1.15 million from the sale.
    • Chief Revenue & Marketing Off Michelle D. Wilson sold 27,900 shares for $20.88, generating $582,552 from the sale.

    You can view the list of recent insider transactions for World Wrestling Entertainment Inc. here.

    P/E: 67.3 Forward P/E: 32.7 Industry P/E: 20.39
    P/S: 2.27 Price/Book: 7.33 EV/EBITDA: 21.42
    Market Cap: $1.60B Avg. Daily Volume: 425,181 52 Week Range: $14.2 – $21.39

    4. Apple Inc. (AAPL): $109.36

    Shares of Apple were sold by 4 insiders:

    • Senior Vice President Craig Federighi sold 90,153 shares for $109.15, generating $9.84 million from the sale.
    • SVP, Gen’l Counsel, Secretary D. Bruce Sewell sold 24,000 shares for $110.11, generating $2.64 million from the sale.
    • Senior Vice President, CFO Luca Maestri sold 11,021 shares for $108.93, generating $1.2 million from the sale.
    • Senior Vice President Johny Srouji sold 9,827 shares for $108.44, generating $1.07 million from the sale.

    You can view the list of recent insider transactions for Apple Inc. here.

    P/E: 12.75 Forward P/E: 12.27 Industry P/E: 21.2
    P/S: 2.67 Price/Book: 4.65 EV/EBITDA: 8.27
    Market Cap: $589.28B Avg. Daily Volume: 33,911,100 52 Week Range: $89.47 – $123.82

    5. ServiceNow, Inc. (NOW): $73.69

    Shares of this software-as-a-service provider were sold by 2 insiders:

    • Chief Product Officer Frederic B. Luddy sold 154,000 shares for $75.67, generating $11.65 million from the sale. These shares were sold indirectly through a trust.
    • Chief Revenue Officer David Schneider sold 2,803 shares for $75.53, generating $211,711 from the sale.

    You can view the list of recent insider transactions for ServiceNow, Inc. here.

    P/E: N/A Forward P/E: 71.54 Industry P/E: 21
    P/S: 10.07 Price/Book: 37.07 EV/EBITDA: -129.06
    Market Cap: $12.12B Avg. Daily Volume: 1,472,820 52 Week Range: $46 – $91.28

    You can view the full list of sales from this Insider Sales page.

    Disclaimer: I do not have any positions in any of the stocks mentioned in this article. Please do your own due diligence before buying or selling any securities mentioned in this article. We do not warrant the completeness or accuracy of the content or data provided in this article.

    Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria or follow me on Twitter @asifsuria

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    Merger Arbitrage Mondays – August 15, 2016

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    August 15, 2016 | Merger Arbitrage | Author Asif

    Merger activity remained the same with four new deals announced and three deals closing.

    You can find all the active deals listed below in our Merger Arbitrage Tool that automatically updates itself during market hours.

    Deal Statistics:

    Total Number of Deals Closed in 2016 133
    Total Number of Deals Not Completed in 2016 11
    Total Number of Pending Deals
    Cash Deals 59
    Stock Deals 17
    Stock & Cash Deals 14
    Special Conditions 8
    Total Number of Pending Deals 98
    Total Deal Size $984.75 billion

    New Deals:

    1. The acquisition of EverBank Financial (EVER) by TIAA for $2.5 billion or $19.50 per share in cash.
    2. The acquisition of Monster Worldwide (MWW) by Randstad Holding for $429 million or $3.40 per share in cash.
    3. The acquisition of Press Ganey Holdings (PGND) by the private equity firm EQT for $2.35 billion or $40.50 per share in cash.
    4. The acquisition of Silicon Graphics International (SGI) by Hewlett Packard Enterprise Company (HPE) for $275 million or $7.75 per share in cash.

    Deal Updates:

    1. On August 10, 2016, Lam Research Corporation (LRCX) and KLA-Tencor Corporation (KLAC) today provided an update on their planned business combination. It has become more likely that obtaining regulatory clearances in one or more of the remaining jurisdictions may extend beyond October 20, 2016, the outside date set forth in the merger agreement. We are changing the closing date for the deal to December 31, 2016.
    2. On August 13, 2016, The judge overseeing the U.S. Justice Department’s bid to stop health insurer Anthem (ANTM) from merging with competitor Cigna (CI) said on Friday her goal was to have a ruling by the end of January, later than the Dec. 30 date sought by Anthem. We are changing the closing date for the deal to March 31, 2017.

    Closed Deals:

    1. The acquisition of China Nepstar Chain Drugstore (NPD) by China Neptunus Drugstore Holding and Neptunus Global Limited on August 3, 2016. It took 140 days for this deal to be completed.
    2. The acquisition of ReachLocal (RLOC) by Gannett (GCI) on August 9, 2016. It took 43 days for this deal to be completed.
    3. The acquisition of Electro Rent Corporation (ELRC) by Platinum Equity on August 10,2016.  It took 71 days for this deal to be completed.

    Top 10 deals with largest spreads:

    Symbol Announced

    Date

    Acquiring

    Company

    Closing

    Price

    Last

    Price

    Closing

    Date

    Profit Annualized

    Profit

    HTCH 11/02/2015 TDK Corporation (N/A) $4.00 $1.58 09/30/2016 153.16% 1215.33%
    ALR 02/01/2016 Abbott Laboratories (ABT) $56.00 $40.45 12/31/2016 38.44% 101.68%
    CI 07/24/2015 Anthem, Inc. (ANTM) $170.47 $133.31 03/31/2017 27.88% 44.63%
    HUM 07/03/2015 Aetna Inc. (AET) $225.15 $180.86 12/31/2016 24.49% 64.77%
    RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) $9.00 $7.55 12/31/2016 19.21% 50.80%
    LXK 04/19/2016 consortium of investors led by Apex Technology Co., Ltd. (Apex) and PAG Asia Capital (PAG) (N/A) $40.50 $35.02 12/31/2016 15.65% 41.39%
    WR 05/31/2016 Great Plains Energy Incorporated (GXP) $60.00 $53.45 03/31/2017 12.25% 19.62%
    IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) $38.90 $34.66 12/31/2016 12.23% 32.36%
    KLAC 10/21/2015 Lam Research Corporation (LRCX) $76.59 $68.28 12/31/2016 12.17% 32.19%
    CVT 04/18/2016 affiliates of Vista Equity Partners (N/A) $36.00 $32.33 09/30/2016 11.35% 90.07%

    List of all pending deals:

    Symbol Announced

    Date

    Acquiring

    Company

    Deal

    Type

    Closing

    Value

    Closing

    Price

    Last

    Price

    Volume Closing

    Date

    Profit Annu.

    Profit

    + HTCH 11/02/2015 TDK Corporation (N/A) Special Conditions $126 million $4.00 $1.58 190,166 09/30/2016 153.16% 1215.33%
    + ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.8 billion $56.00 $40.45 620,680 12/31/2016 38.44% 101.68%
    + CI 07/24/2015 Anthem, Inc. (ANTM) Cash Plus Stock $54.2 billion $170.47 $133.31 3,709,633 03/31/2017 27.88% 44.63%
    + HUM 07/03/2015 Aetna Inc. (AET) Cash Plus Stock $37 billion $225.15 $180.86 1,246,314 12/31/2016 24.49% 64.77%
    + RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) All Cash $17.2 billion $9.00 $7.55 5,270,697 12/31/2016 19.21% 50.80%
    + LXK 04/19/2016 consortium of investors led by Apex Technology Co., Ltd. (Apex) and PAG Asia Capital (PAG) (N/A) All Cash $3.6 billion $40.50 $35.02 241,816 12/31/2016 15.65% 41.39%
    + WR 05/31/2016 Great Plains Energy Incorporated (GXP) Special Conditions $12.2 billion $60.00 $53.45 560,278 03/31/2017 12.25% 19.62%
    + IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) All Cash $6 billion $38.90 $34.66 596,580 12/31/2016 12.23% 32.36%
    + KLAC 10/21/2015 Lam Research Corporation (LRCX) Cash Plus Stock $10.6 billion $76.59 $68.28 2,896,651 12/31/2016 12.17% 32.19%
    + CVT 04/18/2016 affiliates of Vista Equity Partners (N/A) All Cash $1.65 billion $36.00 $32.33 140,681 09/30/2016 11.35% 90.07%
    + APOL 02/08/2016 A consortium of investors including The Vistria Group, LLC, funds affiliated with Apollo Global Management, LLC and and Najafi Companies (N/A) All Cash $1.1 billion $10.00 $9.04 160,127 08/31/2016 10.62% 242.26%
    + TSL 08/01/2016 Investor consortium comprising Mr. Gao and other entities. (N/A) All Cash $2.3 billion $11.60 $10.49 1,491,683 03/31/2017 10.58% 16.94%
    + AIXG 05/23/2016 Fujian Grand Chip Investment Fund LP (N/A) All Cash $748.36 million $6.66 $6.16 12,004 12/31/2016 8.12% 21.47%
    + WGBS 05/13/2016 Takara Bio USA Holdings, Inc. (N/A) Special Conditions $18 million $0.95 $0.882 1,019,684 03/31/2017 7.71% 12.34%
    + YDKN 07/21/2016 F.N.B. Corporation (FNB) All Cash $1.4 billion $27.35 $25.48 133,105 03/31/2017 7.34% 11.75%
    + VAL 03/20/2016 The Sherwin-Williams Company (SHW) All Cash $11.3 billion $113.00 $105.55 153,779 03/31/2017 7.06% 11.30%
    + IOC 07/21/2016 Exxon Mobil Corporation (XOM) Special Conditions $2.5 billion $52.07 $49.02 331,566 09/30/2016 6.22% 49.37%
    + AMTG 02/26/2016 Apollo Commercial Real Estate Finance, Inc. (ARI) Cash Plus Stock $641 million $14.41 $13.69 199,894 08/15/2016 5.23% 0.00%
    + NHLD 04/28/2016 Fortress Biotech, Inc. (FBIO) All Cash N/A $3.25 $3.10 237,685 08/15/2016 4.84% 0.00%
    + SCTY 08/01/2016 Tesla Motors (TSLA) All Stock $5.4 billion $24.82 $23.70 2,087,515 04/30/2017 4.71% 6.67%
    + CKEC 03/03/2016 AMC Entertainment Holdings, Inc. (AMC) All Cash $1.1 billion $33.06 $31.60 162,015 12/31/2016 4.62% 12.22%
    + PBCP 06/02/2016 Prudential Bancorp, Inc. (PBIP) Special Conditions $38.1 million $11.28 $10.80 N/A 12/31/2016 4.44% 11.76%
    + LLTC 07/26/2016 Analog Devices, Inc. (ADI) Cash Plus Stock $14.8 billion $60.91 $58.78 2,077,646 06/30/2017 3.62% 4.15%
    + JOY 07/21/2016 Komatsu America Corp. (N/A) All Cash $3.7 billion $28.30 $27.36 2,921,799 06/30/2017 3.44% 3.93%
    + ARMH 07/18/2016 SoftBank Group (SFBTY) All Cash $32 billion $67.32 $65.23 1,480,154 12/31/2016 3.20% 8.47%
    + STRZA 06/30/2016 Lions Gate Entertainment Corp. (LGF) Cash Plus Stock $4.4 billion $32.46 $31.51 951,936 12/31/2016 3.00% 7.95%
    + DANG 05/31/2016 Dangdang Holding Company Limited and Dangdang Merger Company Limited (N/A) All Cash $556 million $6.70 $6.51 285,321 12/31/2016 2.92% 7.72%
    + DSKY 12/31/2015 Dream Investment Holdings Limited (N/A) All Cash N/A $14.00 $13.62 26,695 06/30/2016 2.79% 0.00%
    + STJ 04/28/2016 Abbott Laboratories (ABT) Cash Plus Stock $25 billion $85.97 $83.64 1,419,222 12/31/2016 2.79% 7.37%
    + ITC 02/09/2016 Fortis Inc. (FTS.TO) Cash Plus Stock $11.3 billion $47.66 $46.50 424,633 12/31/2016 2.50% 6.61%
    + OSHC 07/13/2016 OceanFirst Financial Corp. (OCFC) Cash Plus Stock $145.6 million $22.60 $22.09 21,936 01/31/2017 2.31% 5.00%
    + LNKD 06/13/2016 Microsoft Corporation (MSFT) All Cash $26.2 billion $196.00 $191.61 1,639,571 12/31/2016 2.29% 6.06%
    + EVER 08/08/2016 TIAA (N/A) All Cash $2.5 billion $19.50 $19.07 5,533,333 06/30/2017 2.25% 2.58%
    + HOT 11/16/2015 Marriott International, Inc. (MAR) Special Conditions $13.6 billion $79.53 $77.85 1,105,996 07/31/2016 2.16% 0.00%
    + EVHC 06/15/2016 AmSurg Corp. (AMSG) All Stock $7.66 billion $22.31 $21.84 2,422,943 12/31/2016 2.16% 5.71%
    + TLN 06/03/2016 affiliates of Riverstone Holdings LLC (N/A) All Cash $5.2 billion $14.00 $13.72 774,218 12/31/2016 2.04% 5.40%
    + SCNB 06/27/2016 People’s United Financial Inc. (PBCT) All Stock $402 million $34.24 $33.56 38,209 12/31/2016 2.03% 5.38%
    + WWAV 07/07/2016 Danone (N/A) All Cash $12.5 billion $56.25 $55.15 3,028,840 12/31/2016 1.99% 5.28%
    + VA 04/04/2016 Alaska Air Group, Inc. (ALK) All Cash $4 billion $57.00 $55.95 143,819 01/01/2017 1.88% 4.93%
    + CBNK 04/04/2016 Westfield Financial Inc. (WFD) All Stock $110 million $18.33 $18.00 1,900 12/31/2016 1.85% 4.89%
    + RSTI 03/16/2016 Coherent Inc. (COHR) All Cash $942 million $32.50 $31.93 105,120 12/31/2016 1.79% 4.72%
    + DRII 06/29/2016 Apollo Global Management, LLC (APO) All Cash $2.2 billion $30.25 $29.72 1,715,663 12/31/2016 1.78% 4.72%
    + MKTO 05/31/2016 Vista Equity Partners (N/A) All Cash $1.79 billion $35.25 $34.69 2,978,879 09/30/2016 1.61% 12.81%
    + FMD 06/02/2016 FP Resources USA Inc. (N/A) All Cash $65.5 million $5.05 $4.98 33,221 09/30/2016 1.41% 11.15%
    + RRMS 05/31/2016 SemGroup Corporation (SEMG) All Stock $1.74 billion $24.00 $23.68 120,775 09/30/2016 1.36% 10.76%
    + FCLF 04/26/2016 First Mid-Illinois Bancshares, Inc. (FMBH) All Stock $90 million $12.41 $12.25 2,606 12/31/2016 1.34% 3.55%
    + CLBH 06/22/2016 First Bancorp (FBNC) All Stock $97.3 million $18.75 $18.50 7,500 03/31/2017 1.34% 2.14%
    + SQNM 07/27/2016 Laboratory Corporation of America (LH) All Cash $371 million $2.40 $2.37 2,465,194 12/31/2016 1.27% 3.35%
    + SAAS 05/18/2016 NICE Systems Ltd. (NICE) All Cash $940 million $14.00 $13.84 653,094 12/31/2016 1.16% 3.06%
    + SMT 05/26/2016 Foxconn Technology Group (N/A) All Cash N/A $4.50 $4.45 6,343 07/31/2016 1.12% 0.00%
    + FCS 11/18/2015 ON Semiconductor Corp. (ON) All Cash $2.4 billion $20.00 $19.78 401,139 07/21/2016 1.11% 0.00%
    + EPIQ 07/27/2016 OMERS Private Equity and Harvest Partners (N/A) All Cash $1 billion $16.50 $16.33 415,965 12/31/2016 1.04% 2.75%
    + FLTX 08/01/2016 Verizon (VZ) All Cash $2.4 billion $60.00 $59.39 1,041,530 12/31/2016 1.03% 2.72%
    + AVG 07/07/2016 Avast Software (N/A) All Cash $1.3 billion $25.00 $24.76 623,509 10/15/2016 0.97% 5.80%
    + GLDC 07/19/2016 Utz Quality Foods, Inc. (N/A) All Cash $135 million $12.00 $11.89 3,837 12/31/2016 0.93% 2.45%
    + BBX 07/28/2016 BFC Financial (BFCF) All Cash $293 million $20.00 $19.82 11,263 06/30/2017 0.91% 1.04%
    + TIVO 04/29/2016 Rovi Corporation (ROVI) Special Conditions $1.1 billion $10.70 $10.61 972,830 09/30/2016 0.85% 6.73%
    + AF 10/29/2015 New York Community Bancorp Inc. (NYCB) Cash Plus Stock $2 billion $14.71 $14.59 445,244 12/31/2016 0.82% 2.18%
    + SGI 08/12/2016 Hewlett Packard Enterprise Company (HPE) All Cash $275 million $7.75 $7.69 17,815,903 01/31/2017 0.78% 1.69%
    + FEIC 05/27/2016 Thermo Fisher Scientific, Inc. (TMO) All Cash $4.2 billion $107.50 $106.70 146,282 01/31/2017 0.75% 1.62%
    + PLCM 07/08/2016 Siris Capital Group, LLC (N/A) All Cash $2 billion $12.50 $12.41 2,304,195 09/30/2016 0.73% 5.75%
    + MGN 05/24/2016 Hecla Mining Co. (HL) All Stock N/A $1.55 $1.54 143,433 09/30/2016 0.67% 5.35%
    + RDEN 06/16/2016 Revlon, Inc. (REV) All Cash $870 million $14.00 $13.91 177,415 12/31/2016 0.65% 1.71%
    + IMPR 07/13/2016 an affiliate of Thoma Bravo, LLC (N/A) All Cash $544 million $19.25 $19.14 159,341 12/31/2016 0.57% 1.52%
    + YCB 05/03/2016 WesBanco Inc. (WSBC) Cash Plus Stock $221 million $37.83 $37.62 7,937 12/31/2016 0.57% 1.51%
    + PKY 04/29/2016 Cousins Properties Incorporated (CUZ) All Stock $1.95 billion $17.29 $17.22 433,106 12/31/2016 0.43% 1.14%
    + QLIK 06/02/2016 Thoma Bravo, LLC (N/A) All Cash $3 billion $30.50 $30.37 839,076 09/30/2016 0.43% 3.40%
    + MESG 05/23/2016 Siris Capital Group, LLC (N/A) All Cash $643 million $25.00 $24.90 74,355 09/30/2016 0.40% 3.19%
    + MRD 05/16/2016 Range Resources Corporation (RRC) All Stock $4.4 billion $14.53 $14.48 623,942 12/31/2016 0.35% 0.94%
    + FMER 01/26/2016 Huntington Bancshares Incorporated (HBAN) Cash Plus Stock $3.4 billion $21.31 $21.24 421,634 09/30/2016 0.31% 2.45%
    + REXI 05/23/2016 C-III Capital Partners (N/A) All Cash $270 million $9.78 $9.75 26,240 11/15/2016 0.31% 1.22%
    + MFRM 08/07/2016 Steinhoff International Holdings NV (N/A) All Cash $3.8 billion $64.00 $63.84 437,759 09/30/2016 0.25% 1.99%
    + AXLL 06/10/2016 Westlake Chemical Corporation (WLK) All Cash $3.8 billion $33.00 $32.92 2,194,962 12/31/2016 0.24% 0.64%
    + EDE 02/09/2016 Algonquin Power & Utilities Corp. (AQN.TO) All Cash $2.4 billion $34.00 $33.92 213,680 03/31/2017 0.24% 0.38%
    + QLGC 06/15/2016 Cavium, Inc. (CAVM) Cash Plus Stock $1.36 billion $16.07 $16.04 1,139,193 09/30/2016 0.20% 1.61%
    + PNY 10/26/2015 Duke Energy Corporation (DUK) All Cash $6.7 billion $60.00 $59.90 149,479 12/31/2016 0.17% 0.44%
    + ASEI 06/21/2016 OSI Systems, Inc. (OSIS) All Cash $269 million $37.00 $36.94 21,620 12/31/2016 0.16% 0.43%
    + TYC 01/25/2016 Johnson Controls Inc. (JCI) All Stock $16.5 billion $43.88 $43.81 2,567,276 09/30/2016 0.16% 1.26%
    + RLYP 07/21/2016 Galenica Group (N/A) All Cash $1.53 billion $32.00 $31.95 1,072,317 09/30/2016 0.16% 1.24%
    + NATL 07/25/2016 Great American Insurance Company (N/A) All Cash $660 million $32.50 $32.45 8,980 12/31/2016 0.15% 0.41%
    + DWA 04/28/2016 NBCUniversal (N/A) All Cash $3.8 billion $41.00 $40.94 243,160 12/31/2016 0.15% 0.39%
    + HTWR 06/27/2016 Medtronic plc (MDT) All Cash $1.1 billion $58.00 $57.94 157,048 10/28/2016 0.10% 0.51%
    + SGNT 07/11/2016 Nichi-Iko Pharmaceutical Co., Ltd (N/A) All Cash $736 million $21.75 $21.73 211,692 03/31/2017 0.09% 0.15%
    + NTK 07/06/2016 Melrose Industries PLC (N/A) All Cash $2.8 billion $86.00 $85.95 47,531 08/31/2016 0.06% 1.33%
    + OUTR 07/25/2016 affiliates of certain funds managed by affiliates of Apollo Global Management, LLC (N/A) All Cash $1.6 billion $52.00 $52.17 497,377 09/30/2016 -0.33% -2.59%
    + PGND 08/09/2016 EQT Equity fund EQT VII (N/A) All Cash $2.35 billion $40.50 $40.64 256,649 12/31/2016 -0.34% -0.91%
    + SKUL 06/24/2016 Incipio LLC (N/A) All Cash $188.6 million $6.10 $6.14 645,080 09/30/2016 -0.65% -5.17%
    + IMS 05/03/2016 Quintiles Transnational Holdings Inc. (Q) All Stock $9 billion $29.34 $29.54 586,078 12/31/2016 -0.69% -1.81%
    + STR 02/01/2016 Dominion Resources, Inc. (D) All Cash $4.4 billion $25.00 $25.20 226,950 12/31/2016 -0.79% -2.10%
    + ACAS 05/23/2016 Ares Capital Corporation (ARCC) Cash Plus Stock $3.4 billion $16.33 $16.53 700,139 05/31/2017 -1.23% -1.55%
    + MHGC 05/09/2016 SBE (N/A) All Cash $794 million $2.25 $2.28 72,296 12/31/2016 -1.32% -3.48%
    + LSBG 05/05/2016 Bar Harbor Bankshares (BHB) All Stock $143 million $17.53 $17.88 10,360 03/31/2017 -1.96% -3.14%
    + COB 11/23/2015 Capital Bank Financial Corp. (CBF) All Stock $350 million $12.52 $12.80 1,478 06/30/2016 -2.21% 17.52%
    + TTHI 06/30/2016 Opko Health, Inc. (OPK) All Stock $60 million $1.57 $1.61 9,201 12/31/2016 -2.52% -6.68%
    + MWW 08/09/2016 Randstad Holding (N/A) All Cash $429 million $3.40 $3.51 1,973,478 12/31/2016 -3.13% -8.29%
    + MEG 01/27/2016 Nexstar Broadcasting Group, Inc. (NXST) Special Conditions $4.6 billion $17.14 $17.82 947,279 12/15/2016 -3.82% -11.42%
    + AEGR 06/15/2016 QLT Inc. (QLTI) All Stock $267.27 million $1.45 $1.57 159,879 12/31/2016 -7.89% -20.87%
    + CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $4.93 $11.48 110,205 12/31/2016 -57.03% -150.83%

    Disclaimer: I hold long positions in Apollo Education (APOL), Monster Worldwide (MWW) and Hutchinson Technology (HTCH). Please do your own due diligence before buying or selling any securities mentioned in this article. We do not warrant the completeness or accuracy of the content or data provided in this article.

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