Markets broke out of their Monday doldrums today, advancing broadly at the time of this writing. Strong earnings reports fueled the solid gains.
All kinds of events can create a profitable NewsQuantified news event: everything from clinical trials to Digital Currency offerings can create explosive gains (or losses).
Mergers and acquisitions are one of the most common sources of truly dramatic gains for savvy NewsQuantified traders. Our users can play these events two different ways.
First, and most directly, users who act quickly on our News Alerts are often in a position to beat the market on nice clean arbitrage between current stock price and the announced acquisition price.
Second, major acquisitions can be a great source of industry knowledge. It can be almost impossible for small investors to evaluate smaller technology or pharmaceutical stocks, for instance. The valuation of these firms can be tied up in incredibly technical issues. Yet, if a seasoned industry player is considering an acquisition, that provides strong evidence that the smaller company in question has something of great value (and more than its price suggests).
Which brings us to today’s Top Performer…
First Colebrook Bancop is a bank holding company which owns Granite Bank. This morning, they announced that Granite Bank would be merged with Bangor Savings Bank, held by Bangor Bancorp.
Colebrook Bancorp shareholders will receive $45 for each share of stock. Even after 90%+ gains, FCNH’s stock is sitting just above $43.
Bangor is making the move in a bid to further expand its retail banking presence in the New England Region. They are headquartered in Bangor, Maine.
They paid a substantial premium to secure this merger, paying FCNH shareholders an 180% premium on the tangible book value of Granite Bank.
The deal is still pending regulatory approval, and is expected to be transacted in May 2018.
Diverse Plays, Great Profits: All in a single news day.
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We analyze news events ranging from clinical trials in the pharmaceutical industry to routine earnings releases to major geopolitical shakeups.
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A powerful news analytics platform like NewsQuantified not only makes it easy to track the news, but to quickly compare news events with key financial information. We make it simple to find strong, diverse plays in any market environment.