CNNB buyout offer

CNNB just got a buyout today.

I highlighted CNNB on Dec 6, 2020 as being an attractive investment.

I wrote: "It would be about 25 months before this stock could be a legitimate buyout candidate, but what kind of returns would investors be looking at? Factoring in a 4% annual return on equity for the following calculations, I estimate that investors could earn nearly 26% annually if the stock is taken out in two years (at a 120% multiple) or about 18% over a three-year period.

Think that takeout multiple is too aggressive? At a 110% multiple, a two-year takeout would result in more than 20% annual returns, while a three-year would garner investors 15%."

How did it ultimately fare? It was acquired about 2.45 years later (and just 4 months after it was eligible). It resulted in a total return of 41.7% and an annualized return of 15.3%. And there’s some potential upside to the reference buyout price, if you think CNNB moves higher.




Here’s the original bit: