Richard Pearson
Long/short equity, special situations, contrarian, short only

Evaluating The Camelot Buyout

Camelot Information Systems (NYSE:CIS) recently received a buyout offer from a group which is currently comprised of CEO Simon Ma, President Heidi Chou and CFITS subsidiary CEO Yuhui Wang. Mr. Ma and Ms. Chou are husband and wife. In addition, other members of senior management may opt to add their own participation to the transaction. The currently proposed buyout price is $1.85, which is over 10% above the last traded price.

Camelot is an interesting buyout trade because the current discount to the buyout price does not reflect the high level of certainty of a) the deal going through and b) it going through in a very brief period of time.

The deal looks highly likely because the...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
WITH SEEKING ALPHA PRO, INVESTORS CAN ALSO:
  • Access Top Ideas, chosen by Seeking Alpha’s editors
  • Filter long and short ideas by market cap and sector
  • Get Coverage of over 5,000 stocks, many of which have little or no coverage elsewhere
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO." Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else." Patrick Rice, Mainstay Capital Management
100% Satisfaction Guaranteed
Money back guarantee. Seeking Alpha PRO members receive a no-questions-asked refund for membership on months paid and not used. Details