Bidding war rumors are circulating about ZAGG stock. Zagg stock shot up 16% right before market close after the NY Post reported that multiple buyers are interested in the company. The rumors that a bidding war could start are coming from the NY Post article here.
Zagg (ZAGG) has signed confidentiality agreements with two potential buyers, two sources told The New York Post’s Josh Kosman, who said that “a bidding war is brewing for the nation’s dominant maker of smartphone screen protectors.” One of the potential bidders is Acco Brands (ACCO) and the other bidder is an undisclosed private equity firm, according to sources.
The rumors sound true to me so this looks like an excellent swing long trade setup on a possible bidding war in Zagg stock.
Looking at the daily chart of Zagg, even after the 16% move higher on August 21, 2019, the stock looks like a good buy on a consolidation zone after the brutal downtrend. Zagg shares have lost about 38.3% since the beginning of the year.
I’m adding Zagg to the GST Portfolio for a play on a possible bidding war. This is a high risk gambit and the rumors may turn out to be false.
Disclosure: We do not hold any position in Zagg stock.