Mr. Eisner, the CEO of Disney, stated he might be interested in buying GBFE
(Great Books Family Entertianment). The stock has a $2.50 high on the news. And currently trades at a discount to that at $1.71 currently Only 27 million shares Outstanding. A 52 week high of $11.81.....
GBFE brings about $200 million in revs in per year. Let me emphasize... this is something EISNER said about GBFE...this isn't an unconfirmed rumor that he might be interested...he IS interested. And, GBFE is looking for possbily being taken over. From CBS Marketwatch ``Shares of Golden Books Family Entertainment jumped 162.5 percent Thursday after a published report said Walt Disney Co. is considering an acquisition of the children's publisher." and "Golden Books, which has seen its stock tumble from the 10-11 range in the past year, is streamlining itself to focus more intently on its core children's book business."and from Bloomberg: "Disney, the world's No. 2 entertainment company has ``had talks'' with Golden Books and it's possible Disney could purchase the publisher of children's titles such as Pat the Bunny and The Poky Little Puppy, Disney's Eisner told Bloomberg News Tuesday. He didn't elaborate on the talks or the likelihood of an deal. A purchase would allow Disney, which is already the biggest generator of licensing agreement revenue for Golden Books, to acquire the popular brand name while gaining greater control of that revenue, an analyst said. ``It would be pretty easy for Disney to turn that around,'' said Sean Egan, managing director of Egan-Jones Ratings Co."
My own thoughts:
A possible Disney buyout will keep this stock from tanking. Which I believe means a limited downside and A LOT of upside. And remember, Disney's CEO is not in the business of pumping penny stocks for his own benefit. This need is real from Disney..and I believe they can turn this company around to something very profitable. My short term target is $3.