Buying a stock I've previously owned is usually a lot of fun. I save time on research since I know the company already, and I get a psychological kick from knowing that I made a good decision to sell, since the price has come back down. Such was the case with STT Enviro, a repeat stock I talked about on this site about 1.5 years ago.
Yesterday, STT announced that it was being bought out at a solid premium to its previous price. This is bittersweet for me, because while I love the quick gain, I hate to see such a volatile stock for a (usually) cash-rich and profitable company disappear from the opportunity set. This is a stock that would routinely lose/gain half its price in a given year. Barely a month ago, it traded for less than 1/3 of the takeout price!
This is not a perfect company by any stretch, which may be why its price is so volatile. It's cyclical, for one thing. And for another, there have been some management shenanigans: private placements at discounts to market while cash balances were high, shareholder loans to executives, and stock option expiry extensions, just off the top of my head. But at the right price I'm willing to overlook such behaviour, while I suspect some investors aren't.
The challenge now is finding a replacement in my portfolio. Any suggestions?
Disclosure: No position