CDWC: CDW Buyout For Real

Yesterday, when the CDW buyout talks were still just a rumor, I said “with the stock now trading with a 19x FY2008 P/E multiple and a 12x EV/trailing EBITDA, I wonder how much more a buyer would be willing to pay. I wish I had bought this one earlier, but it’s looking way too late now.”
CDW to be bought by Madison Dearborn for $7.3 bln – Yahoo! News

CDW in a statement late on Tuesday said its board had held an auction for various potential bidders before it approved the Madison Dearborn deal, under which CDW shareholders will get $87.75 in cash for each share of CDW common stock.

I was wrong. The one-day gain should still be about 4-5% from when I made that comment, which makes for an annualized rate I don’t want to figure out. Still, had the deal fallen through the downside was probably greater than the 4-5% so I don’t think I was too wrong.

Truth be told, more than missing the trade opportunity I regret losing such a useful read into channel sales for tech equipment. I don’t have the resources to conduct channel checks, so such proxies are my next-best chance.  Without CDW’s monthly sales reports it will be more difficult to get a handle on tech demand.

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One Comment on “CDWC: CDW Buyout For Real”

  1. [...] Since we likely won’t have this source for much longer, I intend to make the most of it while it is still available. The 15.7% organic growth rate is certainly stronger than we have seen recently from such indicators as GDP. Since the GDP data applies to Q1, the stronger (and accelerating) sales growth from CDW argues in favor of improving GDP numbers in the coming quarters. For more information, see all articles on: Stock Market, CDWC This article is for entertainment purposes only and reflects the author’s opinion. It is not a solicitation or advice to buy or sell any securities mentioned. Always consult a qualified advisor before making investment decisions. [...]

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