Hurrah! Our little dynamite OMTR has exploded, the ignition being caused by Adobe! Later today, it was announced that Adobe and Omniture have entered into a definitive agreement for Adobe to acquire Omniture in a transaction valued at approximately $1.8 billion on a fully diluted equity-value basis. Under the terms of the agreement, Adobe will commence a tender offer to acquire all of the outstanding common stock of Omniture for $21.50 per share in cash. The share soared and the stock is expected to trade over $21 tomorrow taking our net returns to over 100% in less than 4 months! Awesome! Congratulations to all OMTR shareholders! This is a great moment for our entire "Stock Buzz Now" community as it reaffirms the strength of our research and how picking quality stocks can bear fruits!
Needless to say, I am happy with the news as much for our catch at the right time as for the huge gain! But, to be frank, I think Adobe is getting OMTR at a bargain! OMTR was a potent growth stock with plenty of room to cover! I would have expected OMTR to get sold at a minimum of $25 per share.
Sell it, lock the gains and open a bottle of wine! simple enough?
Continue to HOLD the stock. Why one may ask?? Well, though the chances may be bleak, but what if some other company (say Microsoft or Ebay) place a higher bid for OMTR!! I would like to wait a bit more just in case this has to happen!
As of now, my recommendation is Option 2 and will wait to ring the final bell with a formal Sell recommendation. However, you will not be making a mistake if you go with Option 1 and sell your shares over $21 to lock a substantial profit!