COMSCORE, Inc. (NASDAQ:SCOR) said that it will buy Rentrak Corporation (NASDAQ:RENT) in an all-stock deal, creating a firm that provides analytics and data services for the web, mobile, media, television and marketing industries which may rise to rival dominant player Nielsen Holdings PLC (NYSE:NLSN). Shares of COMSCORE and Rentrak each gained over 8% and nearly 13% in after-hours trading after the announcement. However, Insider Monkey data show that hedge funds either did not foresee this development, or considered that a potential deal will not bring a lot of value, which is not surprising taking into account that both stocks have declined significantly since the beginning of 2015.
General opinion is that hedge funds underperform the S&P500 based on net returns. But we are missing something very important here. Hedge funds generally pull in strong returns from their small-cap picks and invest a lot of their resources into analyzing these stocks. They simply don’t take large enough positions in them relative to their portfolios to generate strong overall returns because their large-cap picks lagged the market. We share the top 15 small-cap stocks favored by the best hedge fund managers every quarter and this strategy has managed to outperform the S&P 500 ETF (SPY) every year since it was launched in August 2012, returning 118% and beating the market by over 60 percentage points (read more details). Because of this, we know that collective hedge fund sentiment is extremely telling and valuable.
COMSCORE, Inc. (NASDAQ:SCOR) said that the acquisition of Rentrak Corporation (NASDAQ:RENT) in which each Rentrak share will be converted to the right to receive 1.5 shares of COMSCORE, is expected to close in early 2016. COMSORE shareholders are expected to own about 66.5% of the combined firm while Rentrak shareholders will own the other 33.5% on a fully diluted basis. The deal will be mildly dilutive to non-GAAP EPS in 2016, the firm noted, and will be accretive the following year. The deal has been approved by both of the companies’ Board of Directors.
COMSCORE, Inc. (NASDAQ:SCOR) said that it will buy Rentrak Corporation (NASDAQ:RENT) in an all-stock deal, creating a firm that provides analytics and data services for the web, mobile, media, television and marketing industries which may rise to rival dominant player Nielsen Holdings PLC (NYSE:NLSN). Shares of COMSCORE and Rentrak each gained over 8% and nearly 13% in after-hours trading after the announcement. However, Insider Monkey data show that hedge funds either did not foresee this development, or considered that a potential deal will not bring a lot of value, which is not surprising taking into account that both stocks have declined significantly since the beginning of 2015.
General opinion is that hedge funds underperform the S&P500 based on net returns. But we are missing something very important here. Hedge funds generally pull in strong returns from their small-cap picks and invest a lot of their resources into analyzing these stocks. They simply don’t take large enough positions in them relative to their portfolios to generate strong overall returns because their large-cap picks lagged the market. We share the top 15 small-cap stocks favored by the best hedge fund managers every quarter and this strategy has managed to outperform the S&P 500 ETF (SPY) every year since it was launched in August 2012, returning 118% and beating the market by over 60 percentage points (read more details). Because of this, we know that collective hedge fund sentiment is extremely telling and valuable.
COMSCORE, Inc. (NASDAQ:SCOR) said that the acquisition of Rentrak Corporation (NASDAQ:RENT) in which each Rentrak share will be converted to the right to receive 1.5 shares of COMSCORE, is expected to close in early 2016. COMSORE shareholders are expected to own about 66.5% of the combined firm while Rentrak shareholders will own the other 33.5% on a fully diluted basis. The deal will be mildly dilutive to non-GAAP EPS in 2016, the firm noted, and will be accretive the following year. The deal has been approved by both of the companies’ Board of Directors.
DALLAS--(BUSINESS WIRE)--
Kendall Law Group, led by former federal judge Joe Kendall, is investigating potential claims against the Board of Directors of Rentrak (NASDAQ: RENT) in connection with the proposed acquisition of Rentrak by comScore, Inc. According to the terms of the agreement, Rentrak shareholders will receive 1.15 shares of comScore for each Rentrak share held at the close of the transaction. At least one Wall Street analyst has placed a price target of Rentrak at $100 per share, and the median target of analysts is over $73 per share, significantly more than the comScore offer price. Rentrak has traded for more than $87/share this past year.
The national securities firm’s investigation seeks to determine whether Rentrak and its Board breached their fiduciary duties by engaging in self-dealing, failing to maximize the value of the Company, failing to disclose all material benefits and costs, and failing to obtain the best possible consideration for the shareholders. The Kendall Law Group is investigating whether Rentrak shareholders have the option to file a lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information.
If you currently own shares of Rentrak and want to know more about your rights, you are encouraged to contact Jamie McKey at the Kendall Law Group at 877-744-3728 or by email atjmckey@kendalllawgroup.com to learn more about your rights as a shareholder. There is no cost or obligation to you. Kendall Law Group was founded by a former federal judge, includes a former United States Attorney, prosecutors and securities lawyers who are experienced in nationwide complex securities litigation. The firm has been counsel in numerous merger and acquisition cases nationwide, including some of the largest transactions in the United States.
We are going to take the gamble that this is going to fall apart. At the very least this stock is going to lose some steam and we will make some money off of it. I went out to January in order to prevent erosion.
Our in:
Check back later today for any action I undertake with the QQQ or SPY
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