One of the stocks I added to the TAM Deep Value Stock Portfolio last month was Global Sources Ltd. (Bermuda) (NASDAQ:GSOL).

Global Sources Ltd. is a business-to-business (B2B) media company that provides information and integrated marketing services, with a particular focus on the Greater China market.

I wrote about the purchase in my Month Six Update when it was trading at $8.25. So, it was a nice surprise when I checked the portfolio overnight to find the following:

Global Sources Ltd jumped 48.96% yesterday and is now up 116.73% since the purchase. The stock is now the highest performing stock in the portfolio followed by Bridgepoint Education Inc (NYSE:BPI), which is up 112% since its purchase.

The reason for yesterday’s gain was that the company announced that it has entered into an Agreement and Plan of Amalgamation (the “Amalgamation Agreement”) with Expo Holdings I Ltd. (“Parent”) and Expo Holdings II Ltd. (“Amalgamation Sub”), a wholly-owned subsidiary of Parent, pursuant to which Amalgamation Sub and the Company will be amalgamated and continue as an exempted company limited by shares registered under the laws of Bermuda (the “Amalgamated Company”), which will become a wholly-owned subsidiary of Parent (the “Amalgamation”).

The Terms of the Agreement

Subject to the terms and conditions set forth in the Amalgamation Agreement, at the effective time of the Amalgamation, each issued and outstanding common share of the Company (each “Share”) will be automatically cancelled and converted into the right to receive an amount equal to US$18.00 (the “Amalgamation Consideration”) in cash, without interest. The Amalgamation Consideration represents a premium of 50.0% over the Company’s closing price of US$12.00 per Share on May 22, 2017, the last trading day prior to the date that the Company entered into the Amalgamation Agreement, and a premium of 72.65% to the volume-weighted average closing prices of the Shares during the 30 trading days prior to May 22, 2017.

The Acquirer’s Multiple Strategy

While these sorts of overnight gains are not typical in our Deep Value Stock Screens, it does highlight what can happen when you follow an evidence based strategy, like the one at The Acquirer’s Multiple, that focuses on finding undervalued stocks using The Acquirer’s Multiple®. The Acquirer’s Multiple®, founded by Tobias Carlisle, is the valuation ratio financial acquirers use to find attractive takeover candidates.

You can read the full press release on the Global Sources Ltd transaction at PR Newswire here.