Sell Alert: Scripps Networks (SNI)
Scripps Networks (SNI 87.55) will be acquired by Discovery Communications. SNI shareholders will receive $90.00 per share in the form of $63.00 cash plus $27.00 in Discovery Communications common stock. Shared offerings will include Discovery Channel, Animal Planet, the Oprah Winfrey Network, Food Network, Cooking Channel, Travel Channel and HGTV. Also, the deal will combine five of the top 10 leading life-style reality-based programming networks.
Scripps was first recommended in June 2015 at 67.58. The company was featured in the Cabot Value Model using the Modern Value analysis. SNI has advanced 29.6% in the past 26 months compared to a gain of 18.9 % for the Standard & Poor’s 500 Index during the same time period. Scripps has not quite reached its Min Sell Price of 89.80, but I recommend selling now because SNI shares will likely stay near its current price (89.55) until the merger is finalized.
I recommend selling your SNI shares now.