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Turnaround Letter
Out-of-Favor Stocks with Real Value

December 6, 2021

This morning, GCP Applied Technologies (GCP) announced a definitive agreement to be acquired by French construction materials company St. Gobain for $32/share in cash. This price is 14% above our $28 price target.

This morning, GCP Applied Technologies (GCP) announced a definitive agreement to be acquired by French construction materials company St. Gobain for $32/share in cash. This price is 14% above our $28 price target.

We are waiting briefly to move this stock to a Sell. As the deal is a definitive agreement with unanimous approval from both company boards of directors, is all-cash, and readily financed by St. Gobain, we see little risk in the share price. However, as there may have been other bidders, there is an outside chance that a higher counter-bid emerges. We will wait perhaps a week or so to see if this is the case.