Only 62 days ago our call was to buy ALIOY on a potential buyout.  Average price is $45.57.  This is the 121st buyout of our portfolio companies. Over the years, the long-time subscribers to The Arora Report have generated substantial wealth from so many of our portfolio companies getting bought out producing handsome profits.

The buyout by JNJ is for $70 cash plus the holders will get shares in a new company that will contain R&D efforts of Europe’s largest biotech.

The 289.76% annualized return  is calculated on $68 per share where the stock is trading as of this writing and not on $70 per share.  Of course you will get $70 cash when you tender the shares.  Your actual return is higher because you will also get shares in the new R&D company in which your cost basis will be zero and what ever price it trades at will be pure profit.  We expect the transaction to close in June.

What To Do Now

Those in the stock may continue to hold and tender their shares.

Those not in the stock may not enter this position but wait for new posts or go back to posts during the last 60 days  for additional ideas as well as look at the Model Portfolio.

Trades posted on The Arora Report Market Blog have produced unrivalled performance since 2007.  Please click here and scroll down to see the table of all trades.  These trades have been scrutinized in real-time by thousands of subscribers across the globe.  This provides easy verification of performance for newcomers to this site.  Only those trades are included in the performance where the entry post was made available to subscribers to The Arora Report Market Blog.  When the entry post is made available only to the paying subscribers and not posted in real-time on The Arora Report Market Blog, the resulting performance of the trade is not credited in the performance table.  There are very nice gains on this trade but since the entry trade was not posted here in real-time, handsome profits on this trade will not be added to the performance of The Arora Report Market Blog shown on the table.