On January 31, 2013, it was announced Scientific Games Corp. (SGMS
) would purchase the company for $26.00 per share in an all-cash bid. We believe this result confirms our process. That is, we estimate an intrinsic value for our holdings, buying when shares trade at a significant discount to that calculation. Thus, even if a transaction occurs below our best estimate, there is still room to profit even when a lower bid is accepted. We sold the stock in response to the bid, in the $24 to $25 range.
From John Rogers
’ first quarter 2013 commentary