One of the hardest things about investing is learning to expect the unexpected.
The truth is that no matter how much we know, or perhaps think we know, the market has a way of surprising us.
Gains can turn to losses, and losses to gains, on a dime.
I was reminded of that this week when unaffiliated third parties intervened not just once but twice on my behalf.
In both cases, stocks in my Wall Street's Proving Ground and Secret Stock Files portfolios were bought out, resulting in a pair of quick double-digit gains.
First, Maxar Technologies (NYSE: MAXR) was acquired by private equity firm Advent International for a premium of over 100%.
This was a long time coming for Maxar.
It's always been a good company, but over the past year it was besieged by a few isolated setbacks and a broader market dive.
You see, I first recommended Maxar in April 2021.
I was really confident in the pick, so naturally, the stock tanked almost immediately.
First came news that a satellite it produced for Sirius XM had faltered.
Then, a few weeks later, the company delayed the launch of its next-generation imagery satellites, WorldView Legion, as a result of COVID issues and supply chain bottlenecks.
I could have sold. And maybe a more disciplined investor would have.
Instead, I went the opposite direction and held on in the hopes that things would turn around.
After all, Maxar is a world leader in satellite technology and satellite imagery/data - which are both strong, dynamic markets.
You've probably even seen some of the company's highly detailed pictures of Ukraine, as it's been monitoring and documenting the war there.
It's really been a good opportunity for Maxar to show off its capabilities and intelligence.
I guess Advant's been impressed with them, too.
The private equity firm is paying $53 per share in cash for Maxar, which was trading at just $23 at the time of the announcement.
That's a 130% premium.
Unfortunately, because I bought in right before the stock stumbled, I was only able to lock in a more modest 35% gain.
Of course, that's better than nothing - especially in this market.
And anyone who had the gumption to buy in after my initial recommendation and stick with it made out even better.
Again, it just goes to show how quickly things can change and what a little faith can get you.
In any case, in the immediate wake of the Maxar development came news of another buyout - this one of a rocket motor manufacturer I've been pitching all year.
That wasn't such a shock.
The company's chief rival was bought out by Northrop Grumman (NYSE: NOC) a few years ago, so it was the last independent player in its industry.
It was also targeted for acquisition by another defense giant back in 2020, but that deal fell through, paving the way for this one.
I actually owned the stock back then too. So I pocketed a 45% gain on that deal. And when it collapsed I bought back in, leading to this week's 41% gain.