Why Is This Small Electronics Company Up 30% Today?
Sep 9th 2013 1:03PM
Updated Sep 9th 2013 1:04PM
Shares of Molex are up 30% today on the news that it is selling itself to private conglomerate Koch industries. Koch is acquiring Molex for $7.2 billion, a 42% premium to the company's pre-announcement price. According to Motley Fool Analyst Taylor "Icepick" Muckerman, this is a great buy for Koch industries, as Molex has a lot of potential going forward.
One of Molex's biggest consumers is Apple , to which Molex supplies components used in the iPhone 5. While this has been a profitable relationship for Molex, now that the company is taking itself off the board its shareholders won't get to reap the rewards. This is especially disappointing, according to Taylor, because Molex has a lot of potential to partner with other companies that could use its products, including Tesla and John Deere.
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The article Why Is This Small Electronics Company Up 30% Today? originally appeared on Fool.com.Fool contributor Mark Reeth has no position in any stocks mentioned. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. 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 has a disclosure policy.