Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Straight Path Communications Inc (STRP) Surges on Buyout

Straight Path Communications Inc (NYSEMKT:STRP) shareholders are having a very nice Monday after AT&T Inc. (NYSE:T) agreed to buy the company for $95.63 per share in an all stock transaction, good for a total value of around $1.25 billion. The deal, which has been supported by majority shareholder Howard Jonas, is expected to close within a year, subject to FCC review. AT&T is buying Straight Path Communications Inc (NYSEMKT:STRP) in part due to the company’s valuable 28 GHz and 39 GHz millimeter wave spectrum licenses. CEO Davidi Jonas said, ‘The merger of AT&T and Straight Path Communications marks a vital point for us. Importantly, this merger provides Straight Path shareholders with a compelling return since Straight Path’s spin-off to become an independent public company in 2013, with an initial price per share of $6.40 on July 31, 2013’.

What Does The Smart Money Sentiment Say?

At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 39.7% gains over the past 12 months and outperformed the 24.1% gain enjoyed by the S&P 500 ETFs. Our enhanced small-cap hedge fund strategy returned more than 45% over the last 12 months and outperformed SPY by more than 30 percentage points over the last 4.5 years (see details here).

Of the 742 elite funds we track, 8 funds owned $69.36 million of Straight Path Communications Inc (NYSEMKT:STRP) and accounted for 16.40% of the float on December 31, versus 7 funds and $30.79 million respectively on September 30.

The Bottom Line

Straight Path Communications Inc (NYSEMKT:STRP) shares have more than doubled due to an M&A transaction. For more reading, check out ‘Top 6 Best Cheap Acquisitions Made by Google‘.

Follow Straight Path Communications Inc. (NYSEMKT:STRP)
Trade (NYSEMKT:STRP) Now!

Disclosure:None

Wall Street Bull

Wall Street Bull

Loading...