School Bus Stock Up Big on Sale News
Volatility continues to be the name of the game: stocks are broadly up today after an early morning retreat. Once again, the gains are right on the heels of a sharp pullback during yesterday’s trading. The gyrations just won’t stop.
It’s an appropriate end to a February that’s been an utter rollercoaster for equity investors. The month began with the market on a huge January upswing, only to witness a dramatic correction. The recovery has been nearly as dramatic, though often marred by sizable selloffs.
Divergent signs are everywhere. Junk bond short-interest is growing, for instance, in a sign that interest rate pressure will begin guiding market behavior. But inflationary pressure seems to be at odds with the narrative driving yesterday’s selloff: record oil production keeping prices low and the energy sector struggling.
Only one thing appears close to certain: volatility will continue, and news-based profits will keep flowing in.Our blog is a great place to start, but only looks at a small sliver of the thousands of profitable news-based stock plays delivered to our users every week. If you’re interested in getting in on the action, we offer totally free weekly training sessions. You’ll get a virtual tour of our platform and some foundational tips for news-based stock trading. Use the button below to sign up:
Student Transportation (STB): School Bus Stock Jumps on Plans to Be Acquired
Today’s Top Performer marks the first appearance of the year for the vaunted School Bus Sector in our blog. Not all outstanding same-day gains come from startups. Indeed, after months dominated by red-hot trends like blockchain, more traditional stocks have been reasserting themselves on our platform in recent months.
Yesterday evening, just after the close of trading, Student Transpiration announced definitive plans to be sold to a buyer group including Ullico, Inc., and CDPQ, a Canadian investment firm. Per the terms of the agreement, shareholders will receive $7.50 per share, a 27% premium over recent trading averages for STB holders.
The news sent the stock shooting up to gains around 25% at the time of this writing—the small margin between trading price and acquisition price presumably reflects the tiny risk that the deal falls through.
Student Transportation is a major school bus operator. The business involves operating a fleet of over 13,500 vehicles, backed by extensive support systems for safety, student transportation management, and logistics/maintenance.
CDPQ is private equity firm, and has long been a major shareholder in STB. Ullico Inc. invests in a variety major infrastructure opportunities.