Topic: How To Invest

Stock Pickers Digest Hotline – Friday, November 18, 2016

Article Excerpt

MENTOR GRAPHICS CORP., $36.49, symbol MENT on Nasdaq, makes systems that improve the design of electronic products and speed up their development. Its clients operate in a range of industries. The stock is the latest of our buys to attract a highly profitable acquisition bid. We’ve had many of those over the last few years. Mentor is now the subject of a $37.25-a-share takeover bid from Siemens AG of Germany. It’s an all-cash offer. The company has been under pressure since activist investor Elliott Management took an 8.1% stake in the company in September 2016. Mentor reportedly then hired Bank of America to look at a possible sale. The company’s board of directors—and Elliott Management—has now accepted the Siemens offer. The stock’s share price has risen more than 19% on the takeover bid, but it still trades below the takeover price. That indicates a higher bid, or a competing bid, is unlikely. Investors often ask how we have managed to recommend so many stocks that…

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