Why Perform Group Ltd Shares Soared Today

Although we don’t believe in timing the market or panicking over every stock fluctuation, understanding how a business is performing, competing and changing is vital to sensible investment.

What: Shares of Perform Group (LSE: PER) rose by 25% to 257p in early trade, after the US investment group Access Industries declared its intention to acquire all the shares in the FTSE 250 company it did not already own. The 260p per share offer — representing a premium of 18% over Perform’s Friday closing price — is final and therefore will not be increased.

Perform (800x533)So what: Perform Group is a media company that owns the digital rights to more than 200 sports leagues, tournaments and events. The company’s business activities include content distribution, on-demand video subscriptions and advertising. The bid, made by AI PG LLC, part of Access Industries Group, values Perform at around £702m.

PTV, which is also owned by Access Industries, presently owns 43% of Perform. “Access Industries has been a supporter of Perform from the start and we continue to have confidence in Perform’s management and in the company’s future potential,” said Access Industries CEO, Lincoln Benet.

Now what: Perform shareholders will be entitled to receive the full 260p per share bid price in cash. The shares lost more than half their value in December following a profit warning. Investors who bought at the bottom may decide to exit to realise significant gains.

That’s the secret, of course: to buy low and sell high. All too regularly investors follow the opposite track. The decision to ‘buy’, then, after today’s price movement, is solely down to you.

Another little known secret, however, is that there are always buying opportunities, if you search long and hard enough.  That’s the opinion of the Motley Fool’s top small cap analyst,  Maynard Paton, who has uncovered a hidden gem we’ve dubbed "The Fool's Top Growth Stock For 2014".

You don’t want to miss out on this idea, especially as our complimentary investor report can be yours for FREE. There’s no obligation -- simply click here for your free copy.

Mark Stones has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.