Cash Offer Made for ArmorGroup

ArmorGroup International (ARG/LN or AMGPF/OTC) received an all-cash bid from G4S yesterday (Thursday). G4S is offering to pay 80 pence per share, a bid which has been endorsed by ArmorGroup's Board of Directors.

I bought ArmorGroup in September 2006 at the equivalent of $1.03. At current exchange rates, the 80 pence offer equates to approximately $1.58.

Considering that the company almost doubled in price (in USD terms) some months after I purchased it, my prospective exit price may not seem all that exciting. But considering the shares eventually collapsed and I thought I'd be fortunate to get my original capital back, I'm content. Especially in this market.

Comments

[George]

Remember one of the main goals of value investing is to avoid the permanent loss of capital. Given that goal, it looks to me like you did fine with ArmorGroup.

By the way, are you going to get hit with any fees when the buyout takes place? I'm still trying to learn a bit more about international stock purchases and am curious as to how these types of buyout transactions get processed by brokers.

[Philip the Magnificent]

good work.

[John]

George: Oh yeah, don't think I'm beating myself up or anything -- I'd be happy if everything I bought did as well (despite the roller coaster ride!) There shouldn't be a fee, but I don't recall any foreign stocks bought on international I've owned getting bought before. If there is, I'll try to remember to post it. You might just ask your broker, because different brokers may have different policies.

Philip: Thanks, now let's keep our fingers crossed for the Japanese consumer lenders! ;-)

[David Hunkar]

John
I am new to your blog.Neat site with lots of useful info.

Just wondering.Do you buy foreign stocks directly in foreign exchanges because they don't trade here as ADRs?

Cheers !!!

[John]

David: Yes is the answer to your question. Thanks for stopping by the blog and I hope you'll continue finding it worthy of your time.