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Author: texasreceiver Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 266470  
Subject: subsidiary about to be sold Date: 6/7/2008 2:04 PM
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For years I've really liked Marineland products & their tech support (tropical fish supplies & equipment) and always thought I would see about buying their stock when I was ready to start investing beyond my mutual fund IRA.

Now that I've paid off my student loan, I did some poking around and, it turns out, Marineland is a subsidiary of another company United Pet Group, which is owned by Spectrum, who is in the process of selling it to someone else, Salton, a company on the "pink sheets".

Obviously I need to wait until the sale is consummated, expected in August, but the big question is whether it is a good idea at all to buy into a company that has just been purchased by a new owner. There is no certainty that they will continue to produce the same quality product. Is there a rule of thumb for buying stock in a company that has just been sold? Maybe wait a year ?

And this is part of another newbie question... you see a retail brand that you like but when you do the research, it turns out the brand is part of a huge company that is part of another even more huge company that is certainly not the narrow brand you thought might be a decent investment in the first place. Now what?


Thanks!

Mike
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