If you’re looking for low-risk money in the stock market, one of the best places is with tender offers. As I explain in the tender offer section of this site, “The upside is low risk; the downside is low total return, though the annualized return on tenders is usually quite high. Sometimes you may be able to earn as much as 10% on your money in a month. Still, you can easily pocket $100-150 (sometimes more) for just clicking the mouse a few times.” And we have yet another company that’s announced the best kind of tender offer.
(Note: Tender offers are great, low-risk money, but they are pretty rare, usually just 2-3 per year are actionable. Fortunately right now, (until early December) we have an excellent “take private” in process that can earn you several hundred dollars (nearly $750, as of November 1). Sign up for our special free report in the lower right pop-up box or at the top of the screen. I’ll send you a special free report with all the details.)
MAM Software (MAMS) just announced a tender offer to buy 2 million shares at a price of $7.50 per share. The offer expires December 1, 2015 unless extended further. And it looks like the company should have no problem funding it, with $6.8 million in the bank and a $12 million secured credit facility that it expects to open in the near future. Plus, it’s the best kind of tender offer for small shareholders – with an odd lot priority. In this case, the odd lot refers to people who own fewer than 100 shares.
What’s the payoff? At the moment not a whole lot, with the stock trading at $7.26 per share. That’s a total payoff of just $24, hardly enough to be worth your effort. These situations, however, have a tendency to increase in value a couple weeks after they’ve been announced, as investors settle down. And with the stock trading just last week for a little over $6 per share, it’s well possible that the spread could open to $100 or more, making it easily worth your time. You can read more in the official SEC filing.
If you want a much more lucrative and similarly low-risk special situation, sign up for our special free report in the lower right pop-up box or shoot me an email in the contact box above.