The sharks seem to be circling a number of companies that have fallen from grace in recent weeks. News reports that BlackBerry Ltd. (TSX:BB)(NYSE:BB) could be an acquisition target of Fairfax financial (TSX:FFH)(NYSE:FFH) due to a 9% stake taken by the Canadian conglomerate has stoked investor interest in BlackBerry and other similarly heavily discounted companies that previously were growth gems.
All investors ought to be wary of such announcements, as speculating about what may or may not take place could turn out to be very costly at the end of the day if one guesses incorrectly.
That said, taking note of companies rumored to be acquisition targets can be beneficial from a value perspective - if another company sees extreme value, it does beg the question of whether tons of value does exist in said company.
As always, please remember to consult with a certified financial advisor into your own homework before making investing decisions. Insider buying and selling activity is not necessarily indicative of the future performance of a given company’s stock price, and insiders regularly buy or sell positions in companies they own or manage for reasons other than expectations of future stock price performance.
Analyzing insider transactions in a given stock is one tool of many to glean pertinent information to assist in investment decision making.
Invest wisely, my friends.
