Today is a great day for the US market as a whole. As China’s market starts to recover, the US market is following with a big rally. In the service sector, we’re seeing green just about across the board. However, there are a few stocks that are far outperforming the rest today. Here they are and why they’re growing; and the scoop is all acquisitions today…
Millennial Media Climbs As Acquisition Rumors Start
Millennial Media, Inc. (NYSE: MM)
TechCrunch recently published an article that sparked a big rumor. The rumor is that AOL, a company that was recently acquired by Verizon, is looking to expand its advertising business by acquiring Millennial Media. The sources at TechCrunch say that the price of the acquisition will range somewhere between $300 million and $350 million if the deal goes through. This is a great premium over the $217 million market capitalization the company has achieved. However, everything is up in the air with this one at the moment as AOL, Verizon and Millennial Media refuse to comment. Nonetheless, this is definitely a situation that’s well worth watching unfold. Currently (1:25), MM is trading at $1.87 per share after a massive gain of 28.97% so far today.
AirMedia Group Stock Is Up On News That The “Go Private” Deal Is Likely To Close
AirMedia Group Inc. (NASDAQ: AMCN)
AirMedia shares are climbing in a big way today after GeoInvesting made a comment that it is confident that the company’s $6/ADS “Go Private” deal will close. In their comment, the firm had the following to say…
“The recent correction in the Chana A share market has caused a price drop for companies that have already received non-binding-go-private offers, including AMCN, which is now trading at $4.00 per ADS, representing 50% potential premium if the go-private offer closes. This big premium could reflect investors’ concerns that the company might not be able to complete its go-private process… However, according to Chinese news on July 7, 2015, AMCN has reportedly received the first installment of RMB 800 million from Longde Wenchuang Fund in its RMB 2.1 billion sale… Coincidentally, on July 6, 2015, AMCN issued another press release to announce that it had retained Duff & Phelps Securities LLC and Kirkland & Ellis as its advisors. Both Duff & Phelps and Kirkland & Ellis have successfully completed several Chinese companies’ go private transactions.”
As a result of the news, AirMedia Group is currently (1:33) trading at $4.67 per share after a gain of 25.54% so far today!
Coast Distribution System Stock Climbs On Acquisition Filing
Coast Distribution System Inc (NYSEMKT: CRV)
Finally, CRV is up in a big way after the release of an acquisition filing. According to the filing, Coast Distribution System will be acquired by KAO Acquisition Sub, Inc., a wholly owned subsidiary of Keystone Automotive Operations. Under the terms of the acquisition, KAO Acquisition Sub will be paying $5.50 cahs per share to acquire all outstanding shares of common stock in CRV. This has sent CRV into massive gains. Currently (1:38), CRV is trading at $5.45 per share after a gain of 50.55% so far today.
Do You Know Of Any Others?
Do you know of any other stocks in the service sector that are seeing massive gains? If so, let us know what they are in the comments below!