Fortress Investment (FIG 8.00) will be acquired by Japan’s SoftBank for $8.08 per share, all cash. SoftBank is preparing to launch the world’s largest private equity fund and will utilize Fortress’ investing expertise to help manage the fund’s assets. The price far exceeds my Min Sell Price of 7.12.
I recommend selling your FIG shares, because my sell target has been reached and the shares are selling very close to the cash offer of $8.08. Fortress was originally recommended in the June 2013 Cabot Benjamin Graham Value Investor at 7.30 and, after many wide swings, has gained 9.04% during the past 44 months compared to an increase of 36.59% for the Standard & Poor’s 500 Index during the same time period. I advise selling your FIG shares now.
Quest Diagnostics (DGX 94.70) reached my Min Sell Price of 94.87 this morning and should now be sold. The diagnostic testing equipment maker now sells at 18.5 times current EPS, which is too high.
Quest was initially recommended in the September 2015 Cabot Benjamin Graham Value Investor at 65.54 and has surged 44.75% during the past 17 months compared to an increase of 11.45% for the Standard & Poor’s 500 Index during the same time period. I advise selling your DGX shares now.