Hang On To ACE For Now

Article Excerpt

ACE CASH EXPRESS INC. $29 (Nasdaq symbol AACE; Aggressive Growth Portfolio, Finance sector; WSSF Rating: Speculative) has accepted a $30.00-a-share cash takeover offer from a private investment group. Insiders control 16% of the company’s stock, so the sale of the company at a minimum $30 is all but certain, assuming it wins needed approval of ACE’s stockholders and financial industry regulators. However, the takeover agreement gives ACE 30 days to solicit a better acquisition proposal. A higher bid is possible but not especially likely. The deal will probably close in the fourth quarter of 2006. We first recommended ACE at $18 in our January 2000 issue. At $30, that works out to a 66.7% gain. ACE investors should hang on to their shares so they can profit if a higher bid comes along. If not, you’ll be able to tender the stock to get the full $30.00 without paying brokerage fees. ACE is now a hold. hold…

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