Another potential takeover target is Chinese travel services company Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP), which provides packaged tours as well as hotel and airline reservation services, though the company has denied takeover talks. The stock has popped as a result, and now appears quite speculative with trailing and forward earnings multiples of 57 and 43 respectively. While recent reports show revenue up over 20% from its levels a year earlier, net margins have fallen leading to a decline in profits. Highbridge Capital Management, managed by billionaire Glenn Dubin, reported a position of 4.1 million shares as of the end of March (find Dubin’s favorite stocks).
Spirit AeroSystems Holdings, Inc. (NYSE:SPR), the $3.7 billion market cap aerospace parts company, is another stock experiencing takeover rumors. Specifically, Spirit AeroSystems Holdings, Inc. (NYSE:SPR) produces fuselage sections, propulsion systems, and wing systems. In its most recent quarterly report, revenue and net income grew at double-digit rates compared to the same period in the previous year and with Wall Street analysts expecting growth to continue next year the forward P/E is 10. While this is based on significant improvement from Spirit AeroSystems Holdings, Inc. (NYSE:SPR)’s earnings results on a trailing basis, it suggests the stock would be a value play if it did hit sell-side targets.
A number of potential buyers, including private equity groups Carlyle and Bain Capital, are reportedly interested in $1.6 billion market cap funds transfer company Moneygram International Inc (NASDAQ:MGI). Funds transfer companies with brick-and-mortar retail locations are somewhat out of favor in the market as investors look towards competition from Paypal and directly from banks. However, Moneygram International Inc (NASDAQ:MGI)’s sales and operating income were up nicely in the first half of 2013 versus a year earlier. Analysts expect growth to continue, and the stock trades at 15 times forward earnings estimates- a considerable premium to Western Union but possibly an attractive price if it can continue to grow its business.
Disclosure: I own no shares of any stocks mentioned in this article.