News broke this morning that portfolio holding XETA Technologies is being purchased -- for cash -- by PAETEC Holding Corp. PAETEC is paying $5.50 for each XETA share, or $61 million in all.
I reported establishing my position in XETA last May, at an average cost of $3.83 a share. If the deal goes through (it's expected to close within three months), this investment will score a gain of 43.6%. Not bad for a stock bought less than nine months ago. If I could keep this up, the pain I inflicted on myself by purchasing Japanese consumer lenders, GM and other losers will lessen dramatically. Oh how I wish.
XETA was a small company, a micro-cap really. It was acquiring other firms itself, yet was certainly a potential takeover target.
Especially in this market -- where M&A deals are announced seemingly every day.
King Pharmaceuticals got bought by Pfizer. Now XETA. Hopefully others will be taken out -- and for cash.