Today, guru Mario Gabelli purchased 1,487,823 shares of NaviSite Inc. (NAVI, Financial) at the average purchase price of $5.48 per share on March 25. The transaction numbers reflect a 9803.14% increase to his original holdings in NaviSite. NaviSite Inc. is an Internet application service provider, offering website and Internet hosting and management services. NaviSite Inc. has a market cap of $208.4 million; its shares were traded around $5.49 with a P/S ratio of 1.6. NaviSite is currently undergoing a takeover by Time Warner, who has offered to pay $5.50 per share for the company, or $230 million. Taking over NaviSite, which has 1,200 current customers, will give Time Warner the opportunity to jump into the managed services market and also begin meeting demand for managed services among its small- and medium-sized customers.
NaviSite’s stock, which at one point in 2008 was trading at just 25 cents a share, leaped from $4 on January 31, to $5.46 on Feb. 2, the day after the impending deal was announced. The deal is scheduled to close in the second quarter of 2011 if it obtains shareholder approval.
Mario Gabelli is the founder, chairman and CEO of Gabelli Asset Management Company Investors, a global investment firm that manages $30 billion dollars. Gabelli is known for grabbing chunks of stock in companies at the cusp of major takeovers. He is the only guru who made such a dramatic purchase of NaviSite ahead of the Time Warner deal. Jean-Marie Eveillard owns 1,417,398 shares.
For the latest stock trades by Gurus, go to: Real Time Picks.
NaviSite’s stock, which at one point in 2008 was trading at just 25 cents a share, leaped from $4 on January 31, to $5.46 on Feb. 2, the day after the impending deal was announced. The deal is scheduled to close in the second quarter of 2011 if it obtains shareholder approval.
Mario Gabelli is the founder, chairman and CEO of Gabelli Asset Management Company Investors, a global investment firm that manages $30 billion dollars. Gabelli is known for grabbing chunks of stock in companies at the cusp of major takeovers. He is the only guru who made such a dramatic purchase of NaviSite ahead of the Time Warner deal. Jean-Marie Eveillard owns 1,417,398 shares.
For the latest stock trades by Gurus, go to: Real Time Picks.
