HERO and Todco (THE)

[wgalfsky]

I have a few hundred shares in Todco (THE) and I'm seeing their about to be bought off by Hercules (HERO). Will this cause Todco to go up or down?

[Lumberg]

I have a few hundred shares in Todco (THE) and I'm seeing their about to be bought off by Hercules (HERO). Will this cause Todco to go up or down?

Up. But the buyout per share bid should already be digested in your share prices.

Hold it until after the buyout, and see how it behaves. That's what I would do. It's a good sector that is in a good trend right now.

[spanky]

Lumber's right - the article about the merger hit yesterday, and it popped ~18% on the news. Today gave you a little bit more.

Depending on how long it takes for the merger/buyout to get finalized, you may see the price drop some until the deal is completed.

If you want to be long on the stock, you may consider selling on this news and wait for the price to settle back a bit when the news gets old, the will give you another chance to get a pop on the pps.