It is incredibly rare for me that a thesis pans out within a year. In the case of iGo, it only took about 3 months.
I initiated a position in iGo at half of tangible book and below 2/3 of net current asset value. My primary motivation was the very large margin of safety being offered by Mr Market for this loss producing business.
It paid off.
On July 11, there was a tender offer announced for 44% of iGo. The premium was 71% above the day's closing price. The stock promptly started to trade high next day and I started selling into it.
Why didn't I wait to tender my units?
The complexity of the deal and other factors compelled me to sell early. The biggest holder of iGo, Adage, has offered their units for tender. This doesn't leave much room for the rest of us. Also, the business has had further impairments and will likely release a horrible Q2 report. This information was buried in their 8-k disclosure.
I sold because I didn't want to be holding a business with significantly small margin of safety.
54% return over 3 months isn't too bad at all either.
Full Disclosure: no position in iGo at the time of this writing
