I've been keeping an eye on this stock for a few months as a good "sideways" play on the Internet. Thus far, I like what I've seen, but I'd like to ask the NMR vets here a few questions ...Do you think part or most of NMR's impressive runup is due to takeover rumors? If so, and the rumors prove unfounded, do you think the stock price would plummet? (from what I've seen, that price tends to hold stable regardless of the market's vicissitudes).Would you sell if a takeover were announced, or would it depend on the takeover company?Do you think the stock is too close to its high and ready for a natural pullback once that high is surpassed?The last question isn't so important since I want to buy and hold long term ... still wouldn't mind picking up a bargain, though!(One bonus question: Why isn't this board more active?!)Thanks in advance ... Glantor
Glantor, Do you think part or most of NMR's impressive runup is due to takeover rumors? No, Cognizant spun-off Nielen Media Research last year (July 31st). NMR stock started at 8 dollars as an indepedent company. It climbed to 30 dollars before any talk of buyouts about a month ago. If so, and the rumors prove unfounded, do you think the stock price would plummet? (from what I've seen, that price tends to hold stable regardless of the market's vicissitudes).The price of the stock would have continued to climb due to the nature of NMR's business. Most of the transactions are long-term contracts over five-seven years. But that has become a moot point due to the buy-out announced yesterday. Would you sell if a takeover were announced, or would it depend on the takeover company?It would depend on the takeover company. VNU, the company acquiring NMR, is an international information company. I have started a preliminary financial analysis of VNU but have not reached a sound conclusion. General information can be found at www.vnu.comDo you think the stock is too close to its high and ready for a natural pullback once that high is surpassed?I think NMR would have reached 38-40 before year's end. VNU recognized the potential of the company and paid a premium ($37.75). The name Nielsen probably had something to do with this premium. (One bonus question: Why isn't this board more active?!)Good question. One that I cannot answer. Good questions! Any feedback, from a financial prospective, on VNU would be great. Gary
Glantor,I have to agree with Gary's conclusions. NMR had shown impressive growth over the last year. I do think that they could have made it being independent and that the takeover rumors only added to a already impressive year (growth wise). They were the number one gainer in my portfolio this year (up over 100% on the year after yesterdays annoucment). I was a proud owner of NMR stock until yesterday - sold my entire holding and made a nice profit. It was a 2 bagger for me since I had held it for over a year and had picked it up in the 12-13 range. Wasn't really going to make anymore after the buyout anyway. But hey if the deal falls through for some reason and they stay on their own - I would consider buying again. Later.
Hey, thanks for the great responses ... Guess I was never known for my timing -- talk about yer moot points! Had a chance to buy NMR last year at $15, but opted for CSCO instead ... rotten choice, huh? :) At least CSCO won't be bought out ... I hope!Thanks again and good luck ... Glantor
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