Sell Alert: Market Leader, Inc. (LEDR)
LEDR was recommended by The 100% Letter (formerlly SmallCapInvestor PRO) at
$7.87 in Investment Digest issue 736, dated February 6, 2013. A follow-up was sent
in the May 14 Daily Alert when Market Leader received a takeover offer.
“On May 10th I wrote that I thought Market Leader, Inc. (LEDR, Nasdaq) sold
itself for too little money when it announced the deal with Trulia (TRLA). The 18%
implied premium at the time just didn’t seem like a great deal.
“We’ve been holding off on selling the stock however in case a better deal came in,
and over that time shares have drifted a few percentage points lower. Let’s not wait
around any longer, after all, a bird in the hand is worth two in the bush.
“If we hold out we might be able to make a little more but there is certainly no
guarantee. And I don’t want to hold the stock through the acquisition and end up
with the 0.1553 shares of Trulia we’ll get—if I think you should own TRLA I’ll just
recommend buying that stock.
“Even though LEDR went for less than I expected, we’re still locking in a 45% gain in
just over four months, and that’s pretty darn good.
“Action to take: Sell Market Leader (LEDR) around $10.58 to lock in a 44% gain.”
Tyler Laundon, The 100% Letter, 100percentletter@wyattresearch.com,
866-447-8625, 5/29/13