Vince Martin
Long/short equity, value, gambling

Apollo Education: That Spread Is A Bit Too Big

I wrote last month that Apollo Education Group (NASDAQ:APOL) looked like a good trade, after the company announced it was considering strategic alternatives following its fiscal Q1 earnings report, piggybacking off a Wall Street Journal report citing Apollo Global Management (NYSE:APO) as a potential suitor, with a deal estimated in the range of $1 billion. I even executed the trade myself, quite a reversal given my exceedingly bearish view of the company and management in the quarters heading into the report.

And indeed, AGM, in partnership with two other investors, announced Monday morning it would buy APOL for $9.50 per share, a 37% premium to Friday's close of $6.95. Shares had gained strongly...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
PRO Top long ideas returned 21.7% in 2016**
"As a PRO member, we get uniquely valuable perspective that go beyond our quantiative analysis... We rely on PRO to get beyond the numbers quickly and add much needed perspective. It keeps me ahead of the next big thing. - Mark Choate, Malaga Cove Capital"
Mark Choate, Malaga Cove Capital
"Contributors (writers and commentators), often have a long history in the secuirities they opine on and some are clearly well positioned industry participants with detailed industry views that can help provide color on where the skeletons are buried in a particular secuirity and/or industry."
Jim Roumell, Roumell Asset Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details