On Monday morning (1/30), Pep Boys (ticker: PBY) announced that it has agreed to be acquired by private equity firm Gores Group in a deal that values the auto repair company at roughly $803.9 million — or $15/share. We recommended PBY shares as one of our top-10 DRiPS for 2012 in the January edition of The DRiP Report – our monthly newsletter for First Share PRO members. At the time, we also tripled the weighting of PBY shares in our model portfolio for growth investors.
PBY shares are now up 35% since we selected them as one of our top picks for 2012. If you don’t own the shares now, it is too late as they are currently trading near the purchase price of $15/share and will most likely discontinue their DRiP plan upon completion of the company’s sale. There are still nine DRiPs remaining from our top-10 list, however. So, if you’re not a First Share PRO member and are interested in learning more about our top picks for 2012 click here to upgrade or register as a new member.
We will most likely sell the PBY shares that we hold in our model portfolio. We’ll let our members know what we did with the cash in the February edition of The DRiP Report.
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