06-30-2016, 10:17 AM
Glad you started this thread, Kerim. I've owned HSY for many years. Great company, solid growth. The HSY Trust owns ~10% of the stock, but >80% of the voting rights. Therefore, nothing happens unless they approve, which brings us to today.
HSY is up 20% because Mondelez (MDLZ) made an offer to buy HSY. This seems to happen every 5-10 years, but the HSY Trust always blocks the sale. In fact, about ten years ago, all but one member of HSY's board was replaced because they were seriously considering selling. Based on that, I doubt HSY will sell to MDLZ, but it sounds like MDLZ is very committed to buying it. So, we'll see.
I was actually thinking of selling today to take advantage of this all time high and was going to ask everyone's opinion. If HSY doesn't sell, the stock price will come back down to $100, and I could buy back more shares than I have now. If they do sell, the premium may not be much more than this 20% increase I just realized today. Thoughts?
HSY is up 20% because Mondelez (MDLZ) made an offer to buy HSY. This seems to happen every 5-10 years, but the HSY Trust always blocks the sale. In fact, about ten years ago, all but one member of HSY's board was replaced because they were seriously considering selling. Based on that, I doubt HSY will sell to MDLZ, but it sounds like MDLZ is very committed to buying it. So, we'll see.
I was actually thinking of selling today to take advantage of this all time high and was going to ask everyone's opinion. If HSY doesn't sell, the stock price will come back down to $100, and I could buy back more shares than I have now. If they do sell, the premium may not be much more than this 20% increase I just realized today. Thoughts?