Out Fox The $treet

Anybody following the general market and especially this blog already knows about the CEO placing this company up for sale. See previous article on this blog with a link to an article I wrote for Seeking Alpha for more details. Today the stock for Monster Worldwide (MWW) is up another 4% mainly with the general market. Possibly though the technicians are jumping on board as the stock has finally broken a couple of downtrends the last few days. For numerous valuation reasons, it's very logical for the stock to continue pressing above $10 prior to any deal announcements. The biggest risk to price is the next earnings report in April when the attractive balance sheet and brand meets the weak earnings situation. Until then, I'd expect the stock to remain in an uptrend. The biggest question could possibly be whether to cash out if the stock hits in the $12-13 range prior to a deal or wait it out for a possible $15+ as a few analysts suggest might be possible in a deal. For n...

As we wrote back on Monday, the official announcement of Monster Worldwide (MWW) hiring an advisor was a promising sign. The CEO had mentioned on the 1st that the stock was too cheap and that the company would seek a strategic deal to enhance shareholder value. Then on the 2nd, Oppenheimer questioned the true seriousness of a deal causing the stock to sell off. Not too surprising to see some doubters as Monster is always rumored as a buyout candidate. A rumor that so far has not come true. This time though appears different. Monster has actually acknowledged the interest and followed through with the hiring of an advisor. Possibly suggesting that some of the rumors in the past came from executives unhappy with the stock price and contemplating a deal. Read the full article at Seeking Alpha. Disclosure: Long MWW. Read the disclaimer page for more details. 

A day after Oppenheimer questioned whether Monster Worldwide (MWW) was serious about selling the business, news leaked after the close that it had indeed hired investment bankers. Clearly this doesn't mean a deal will be done, but it shows the intent does exist. To step back a little, Monster's CEO had made an announcement at a conference earlier last week suggesting the company was looking for strategic alternatives to boost the stock price. The stock sprang up nearly 20% that day, but quickly settled back down as reality set in helped by Oppenheimer. Trading should be interesting tomorrow and the rest of the week. The stock remains very cheap and any real intent to sell the company could likely fetch numbers back towards the July level of $13-15. SunTrust analyst Tobey Sommer suggests an acquirer could ring out $100M in costs savings from reducing redundant management, marketing, and general administrative expenses. It has long been suggested that Monster has a bloated...