Gain Over 80% With This Unfairly Punished Stock

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About: Pfizer Inc. (PFE), Includes: APO, AQN, AUPH, AVG, AVST, BLOX, C, CAB, COF, CTAS, EDE, EVER-OLD, GK, GS, LXK, NTR, RAX, RRMS, SEMG, SKUL, SYF
by: Chris DeMuth Jr.

Summary

Aurinia hits endpoints; could draw suitors.

Bidders circle Cabela’s.

Lexmark clears CFIUS.

Welcome to the Beaten Down issue of M&A Daily

Aurinia

Aurinia's (NASDAQ:AUPH) stock was significantly undervalued coming into this month. Thank you, Steven Goldman for sharing your thesis on Aurinia first on Sifting the World. Many members have benefitted from this idea already.

Now that its Lupus drug hit all primary and secondary endpoints, there is likely to be further upside. Ultimately, with success in trials, Aurinia will probably be acquired by a major pharmaceutical company such as Pfizer (NYSE:PFE). What is the right takeout price? Within $3 of $12 by this time next year. For details, please join the conversation at Sifting the World Live Chat.

Cabela's

I am more enthusiastic about Cabela's (NYSE:CAB) as a customer than as an investor, but the company is likely to change hands shortly. Two bidding groups are circling, following pressure from activist Elliott. Bass Pro Shops is working with Goldman (NYSE:GS) on a bid. Capital One (NYSE:COF) wants to buy the Cabela's credit card unit. Another bid is being made by Sycamore and Synchrony (NYSE:SYF).

This takeover target is up over 30% since it was first disclosed in M&A Daily, but it remains modestly attractive at its market price today.

EverBank

The definitive proxy was filed for the Teachers Insurance & Annuity acquisition of EverBank (NYSE:EVER-OLD). EverBank shareholders vote November 9.

G&K

G&K (NASDAQ:GK) received a second request from the FTC on its acquisition by Cintas (NASDAQ:CTAS).

Rackspace

The definitive proxy was filed for the Rackspace (NYSE:RAX) acquisition by Apollo (NYSE:APO). Rackspace shareholders vote November 2.

Potash

Today is the HSR filing deadline for the Potash (POT) merger with Agrium (AGU).

Infoblox

Today is the HSR filing deadline and expiration of the go-shop period for the Vista acquisition of Infoblox (NYSE:BLOX).

Empire

The Arkansas Public Service Commission cleared the Algonquin (AQUNF) acquisition of Empire (NYSE:EDE).

Lexmark

Lexmark (NYSE:LXK) received CFIUS approval for its acquisition by Apex. The deal target has returned over 20% since their talks were first discussed on M&A Daily.

More to come in future editions of M&A Daily

Done deal.

Thank you, Ravi Mulani, for your great research on this opportunity.

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Disclosure: I am/we are long AUPH, CAB, LXK, SKUL.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Chris DeMuth Jr and Andrew Walker are portfolio managers at Rangeley Capital. We invest with a margin of safety by buying securities at discounts to their intrinsic value and unlocking that value through corporate events. To maximize returns for our investors, we reserve the right to make investment decisions regarding any security without notification except where notification is required by law.

We manage diversified portfolios with a multi-year time horizon. Positions disclosed in articles may vary in sizing, hedges, and place within the capital structure. Disclosed ideas are related to a specific price, value, and time. If any of these attributes change, then the position might change (and probably will).

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.