CyrusOne: Rally on Buyout Speculation

NASDAQ:CONE   CyrusOne Inc
I noticed a huge spike in price change for CONE which I've been following as a technology REIT, and it jumped up a whopping 8% on Friday on news of a buyout bid was made. Since no dollar amounts have been disclosed, this 8% premium on pricing is going to be built into any competing offers and CONE could jump much further as well. I've followed buyout news, and they tend to be flat after the inital buy up for investors willing to weather the storms of a merger and take the risk that it falls apart, but this is different since no mathematical value can be determined from the information that is available to the public.

Technicals continue to be strong, and further accumulation on Monday may convince me to further lengthen my position on this security. It moves both like a tech stock and a REIT, but is more highly correlated to the Nasdaq than most REITs. There's a risk to every trade, so always evaluate an idea for risk according to your own system of validation.