Topic: How To Invest

Stock Pickers Digest Hotline – Friday, April 27, 2018

Article Excerpt

MITEL NETWORKS CORP., $14.33, symbol MNW on Toronto, makes technology that integrates landlines and mobile phones. It also offers call centre and videoconferencing products. The company has attracted a friendly $11.15 U.S.-a-share ($14.35 Cdn.) takeover bid from an investor group led by private-equity firm Searchlight Capital Partners. The offer is for an all-cash sale. Mitel’s board of directors has now voted in favour of the $2.6 billion Cdn. deal and will recommend Mitel shareholders approve the arrangement. The terms include a 45-day period when Mitel can look for a higher bid. Investors often ask how we have managed to recommend so many stocks that get taken over at a premium—Mitel shares were trading at $13.40 Cdn. just before the news. One key to our success is that we look for stocks with hidden assets. Because those assets aren’t obvious, they attract less investor attention than they deserve. In Mitel’s case, its high research spending—10% of its sales—represents a hidden asset. While it has…

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