Early Stage Investor Update: AIMT Surges on Big Buyout

AIMT nearly tripled overnight on word Nestle will acquire the remaining shares.

Stock Update Aug 31, 2020 AIMT Surges on Big Buyout Hi Savio, There’s nothing better than waking up to news on a Monday morning that one of your stocks nearly tripled overnight. That’s how we started the week after Nestle announced this morning that it will buy all the shares of Aimmune Therapeutics (AIMT) it does not currently own for $34.50 each. It’s an all-cash deal worth $2.6 billion that values the company at a 174% premium over Friday’s close. You know I’ve been extremely bullish on Aimmune. It has the only FDA-approved treatment for peanut allergies, Palforzia, which should remain the only option for several years. Despite this potential, the stock has been under pressure because the pandemic swept the world shortly after Palforzia received FDA approval on January 31. Because people stopped visiting their allergist amid the shutdowns, the revolutionary drug’s rollout was slower than expected. This led to the stock falling, which in turn created a great buying opportunity. I reiterated our buy on the stock in the Crisis and Opportunity Portfolio in the May Monthly Issue at $17.31. And today, that patience and our long-term outlook for the trend are paying off nicely. At the buyout price of $34.50, AIMT would be up 99.3% from where we added it to the Crisis and Opportunity Portfolio! So, here’s what we want to do in the wake of this great news: Because the offer is all cash, there’s a 99% chance it will go through at that price. That being said, the stock will likely trade slightly below the offer price until the deal closes in the fourth quarter. That’s typical. Let’s hold onto AIMT for a short time – probably a few days – to see if a better offer emerges. If not, we will book our nice profits and use that money for our next buying opportunity. Side note: The odds of a higher offer are not good. However, when you consider that sales from Palforzia could exceed $1 billion in a few years, Nestle is getting a great deal. Congrats! Sincerely, Matt McCall Editor, Early Stage Investor Aug 31, 2020 07:33:32.362 CUSTOMER SERVICE You can reach us via the following e-mail address: Feedback@InvestorPlace.com or by calling us at 1-800-219-8592. Copyright © 2020 InvestorPlace Media LLC 1125 N. Charles St, Baltimore, MD 21201 All rights reserved. No portion of the above message may be republished, retransmitted or forwarded without express written consent from InvestorPlace Media LLC. Violation of this copyright may result in service cancellation and/or collection of full or partial subscription charges from unauthorized users. Use and/or reliance on this service is strictly at the subscriber’s own risk. InvestorPlace Media LLC will not be liable for the acts or omissions of any third party with regards to delay or non-delivery of Inner Circle. InvestorPlace Media LLC shall not be liable for incidental, indirect, special or consequential damages or for lost profits, savings or revenues of any kind. Thank you for subscribing to InvestorPlace.com. Please note that we cannot be liable for any missed bulletins caused by overzealous spam filters. To ensure that you continue to receive this valuable part of your service please take a moment to add (customerservice@exct.investorplace.com) to your address book.