Mitel Networks Corporation (NASDAQ:MITL) is 7% higher on the news that its merger partner, Polycom Inc (NASDAQ:PLCM), might have a second suitor. According to the Wall Street Journal, a private equity firm has made a revised bid for Polycom that might be constituted as superior to Mitel Networks Corporation (NASDAQ:MITL)’s current bid. Polycom and Mitel previously agreed to combine on April 15 in a transaction that received unanimous support of both Boards of Directors. Under the terms of the transaction, Polycom shareholders would own 60% of the combined company. Traders could be buying because of relative valuation, and are likely crossing their fingers in hopes that Mitel doesn’t try to raise its bid to a point that destroys shareholder value.
Is Mitel Networks Corporation (NASDAQ:MITL) worth your attention right now? Investors who are in the know are getting less bullish. The number of bullish hedge fund positions decreased by three lately. MITL was in six hedge funds’ portfolios at the end of March. There were nine hedge funds in our database with MITL holdings at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity, but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Caesars Entertainment Corp (NASDAQ:CZR), iKang Healthcare Group Inc (ADR) (NASDAQ:KANG), and PennyMac Mortgage Investment Trust (NYSE:PMT) to gather more data points.
In the 21st century investor’s toolkit there are a lot of indicators stock traders put to use to grade stocks. Some of the most under-the-radar indicators are hedge fund and insider trading moves. Our researchers have shown that, historically, those who follow the top picks of the elite hedge fund managers can outpace the S&P 500 by a solid margin (see the details here).
With all of this in mind, we’re going to take a gander at the fresh action regarding Mitel Networks Corporation (NASDAQ:MITL).