Nothing like a buy out offer to fatten up your share price.
Three weeks ago Gerdau Ameristeel, which has been producing steel in Knoxville for a long time, announced that Brazilian steelmaker Gerdau wanted to buy all of the shares of Gerdau Ameristeel that it didn’t already own. Since then GNA shares have zoomed — rising nearly 40 percent, making it one of the market’s best performing steel companies of the last few months.
On one day alone the company’s stock price soared more than 54 percent.
Don’t you wich all your stocks had days like that. Not surprisingly, that high-rising day was June 2, the day Gerdau announced it’s offer to buy the 33.7 percent of GNA shares it didn’t own for $11. Shares had traded below $8 most of the year prior to the buy out offer.
Since then, investors have kept the price close to $11 and Gerdau Ameristeel has attracted plenty of attention from various market watchers.
Here’s what some of them have said recently.
Motley Fool: 3 Stocks Shaking the Market
Jim Cramer: Cramer Loves Steel
Knoxville Business Journal photo by Michael Patrick