Why West Marine Inc. Stock Surged 33% Today

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What happened

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Boating supplies retailer West Marine Inc. (NASDAQ: WMAR) shares are up an astounding 33% Friday as of 1:10 p.m. EDT.

So what

It's no secret why. Friday morning, West Marine announced it has agreed to sell itself to private equity firm Monomoy Capital Partners for $12.97 per share, cash. West Marine says the buyout price totals $338 million in "total equity value," and points out that this gives its shareholders a 32% premium to the stock's "30-day average performance."

Now what

With West Marine stock now selling for $12.84, it's within pennies of the announced buyout price. With no other potential buyers on the horizon (that we know of), it's unlikely to go up any more.

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That said, if you buy West Marine stock now, and you can expect to make a $0.15 profit, per share bought, by the time the deal closes. Management says it's hoping to close before the end of the third quarter of this year.

That would work out to a maximum of three months' waiting, for a profit worth 1.17% of the current share price -- a potential return of about 4.7% annualized. (If the deal closes sooner -- say, one month from now -- that annualized profit triples to something closer to 14%).

Those look like decent profits to me, and with little chance of antimonopoly concerns derailing this sale, I'd say that, unless you have a better stock idea, which you think will produce larger returns within the next one to three months, shares of West Marine look like a decent place to place some money in the very short term. Even after rising 33% in a day, I actually see a little bit more profit to be made here.

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Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.