CUB - Why Cubic Corporation Stock Jumped Nearly 10% at the Open Today
Shares of Cubic Corporation (NYSE: CUB) , a defense contractor , rose roughly 10% in early trading on March 22. The interesting thing is that stock had a similar price advance in early February and both moves are tightly related to each other.
In February Cubic announced that it had agreed to be bought out in a $2.8 billion deal, including debt, by private equity shops Veritas Capital and Evergreen Coast Capital Corporation. The key figure to remember here is that the buyout price was $70 per share. Investors were pleased with the all-cash offer and pushed the stock price higher , as you would expect. So far so good.
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Why Cubic Corporation Stock Jumped Nearly 10% at the Open Today