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QuickPost: My Latest Stock Purchase

This post is not meant to be construed as investment advice, you are solely responsible for your own investment decisions and any risk associated with investment decisions that you make.  Please consult your requisite investment and/or tax advisors.

Recently, I’ve been accumulating a small position in GNW.

Quite simply, the company’s shares are trading around $4 yet the company has an outstanding offer from a Chinese company to be bought out at $5.43 which was just approved by GNW shareholders.

There are still regulatory hurdles to overcome, so the $5.43 per share deal isn’t guaranteed, although the expected closing date is mid-year.

Even if the deal falls through, my initial impression is that the company’s intrinsic value is worth more than $4 share, and the company has marketable securities it can liquidate to meet any debt or operational obligations in the near future.

For perspective, GNW comprises approximately 5% of my current portfolio.  I may add more to my portfolio in the future.

 

2 thoughts on “QuickPost: My Latest Stock Purchase

    1. Good question! GNW is a financial holding company that focuses on insurance products in the US and internationally.

      The acquisition offer makes sense because 1) the company is undervalued and has stabilized its operations; 2) the acquirer is hoping to leverage GNW’s expertise to grow its China business and the Chinese insurance market.

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