CNBC is reporting that Boeing (BA) is close to announcing that KLX Inc. (KLXI) is agreeing to be acquired.
KLXI joined the Cabot Undervalued Stocks Advisor Growth Portfolio in June 2017 at a price of 47.28. KLXI is up 6%-10% in the last half hour, near 80.
Shareholders will not be required to make a rapid decision on how to proceed. In general, if it’s an all-cash deal, I will suggesting selling, and if it’s an exchange of KLXI shares for BA shares, I’ll make my sell decision based on the likelihood that BA will (or will not) rise in the very near future. Right now, the BA price chart is relatively bullish, and BA could rise as high as 365 in the coming weeks.
Presuming that a definitive agreement is announced later today or over the weekend, I will report back on Monday with details, and a recommendation on how shareholders should proceed. For now, Hold KLXI, and CONGRATULATIONS!