Today Monotype Imaging ($TYPE stock) announced a dilutive acquisition of $150M. Stock got slammed late in the day -31% at the intraday lows. We starting bottom picking this name in the $19's. Sellers were being very aggressive and eventually slammed the stock down to $17's in 5 minutes. We took this opportunity to load up and rode the stock back up as we believed the extreme weakness was way overdone.
Even an analyst Ladenburg Thalmann only cut their price target on $TYPE by only -$2 to $27 with a BUY rating because of this acquistiion but the stock tanked almost -$8! This reinforced our conviction that the stock was way oversold and we added heavily into weakness. All stock trades are called out live as they happen in the MookTrader chatroom for all our members to follow / watch / learn.
Net Profit: +$6,241