So Long, Ceradyne! It Was Nice While It Lasted.

This article is part of our real-money portfolios series.

Well, it happened sooner than I expected, but I'll be selling the Messed-Up Expectation portfolio's position (all 52 shares!) of Ceradyne (NAS: CRDN) . This morning, the company announced that it had agreed to be purchased by conglomerate 3M (NYS: MMM) for $35 per share.

The sweet thing is that both positions will end up in the green, both the March 2012 purchase at $32.45 and the June 2012 purchase at $25.41. Overall, the portfolio will make 24% on its investment in a mere six months. Not too bad!


I was expecting Ceradyne to become a bigger player in oil drilling, selling its PetroCeram ceramic screen filter to Petrobras (NYS: PBR) and other big field drillers, as well as branching out further in automotive, health care, and cosmetic uses of its products. 3M obviously saw the same kind of opportunity, felt it had a broader reach (which it probably does), and decided to acquire the company.

So long, Ceradyne! It was nice while it lasted.

Come and discuss this and other investments on my Messed-Up Expectations discussion board, or follow me on Twitter.

Ceradyne turned out to be a great investment for me. Here's a free report that reveals the name of what should be a great investment for you, "The One Energy Stock You Must Own Before 2014."

This article is part of our real-money portfolios series, where we give some of our most promising stock analysts cold, hard cash to manage on the Fool's behalf. We'd like you to track our performance and benefit from these real-money, real-time, free stock picks. See all of our analysts (and their portfolios).

The article So Long, Ceradyne! It Was Nice While It Lasted. originally appeared on Fool.com.

Fool analyst Jim Mueller does not own shares of any company mentioned. He's an analyst for the Motley Fool Stock Advisor newsletter service. The Motley Fool owns shares of Ceradyne. Motley Fool newsletter services have recommended buying shares of 3M and Petrobras and creating a diagonal call position in 3M. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool's disclosure policy is never messed up.

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ayesilev

On October 28, 2011, Ceradyne shares closed at $25.48 and on February 2, 2012, its shares closed at $34.64 per share.

http://www.classactioncentral.com/3m-to-acquire-ceradyne-nasdaq-crdn-for-approximately-860-million/

October 12 2012 at 10:52 AM Report abuse rate up rate down Reply