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Today I want to show you a company that has just made one of the smartest acquisitions of the year, as its share price climbs to reflect this deal's potential.
The company is among the best in an industry that's often overlooked, but offers incredible profit opportunities for those who know how to invest.
I'm talking about fleet and fuel management.
You see, most 18-wheelers have a fuel capacity of 200 to 300 gallons, and with gas and diesel costing $3.40/gallon and up, long-haul truck drivers are regularly shelling out $1,000 and more to fill up.
And the fleets of business and government vans, box trucks, and cars that clog our streets are spending millions of dollars on gas every day, too.
Tracking and controlling all this is unimaginably complex for the owners of these fleets. Further, the temptation for drivers (or gas station cashiers) to siphon off some of these billions for themselves must be enormous.
Therefore, the profit potential for firms that can help fleet owners cut costs and deter theft is also vast.
One of the best companies in this business is FleetCor Technologies Inc. (NYSE: FLT) – and it just got substantially better thanks to a very strategic acquisition. Investors loved the deal, and FLT stock skyrocketed 9.2% in one day on news of the acquisition – and has revved up another 5% since then.
If you followed my advice when I first recommended FleetCor back in May 2013, then you were there first – and you're sitting on gains of 90%+.
I'm always telling you folks that mergers and acquisitions are some of the best ways to spark a company's growth and its share price… and here's proof.
FleetCor Technologies (NYSE: FLT) Is Making All the Right Moves
When I reintroduced you to FleetCorback in March, I told you that this digital-payments company was "making all the right moves."
And that was well before this latest deal. On Aug. 12, FleetCor announced that it had picked up corporate card company Comdata in a $3.45 billion deal. The acquisition puts FleetCor in several new and growing business lines, including healthcare payments and virtual cards.
The Comdata deal dramatically raises FleetCor's heft. It brings in 20,000 customers who make about $54 billion in payments annually with Comdata's products.
However, those virtual cards are the most intriguing part of this deal, and here's why.
About the Author
Michael A. Robinson is a 36-year Silicon Valley veteran and one of the top tech and biotech financial analysts working today. That's because, as a consultant, senior adviser, and board member for Silicon Valley venture capital firms, Michael enjoys privileged access to pioneering CEOs, scientists, and high-profile players. And he brings this entire world of Silicon Valley "insiders" right to you...
- He was one of five people involved in early meetings for the $160 billion "cloud" computing phenomenon.
- He was there as Lee Iacocca and Roger Smith, the CEOs of Chrysler and GM, led the robotics revolution that saved the U.S. automotive industry.
- As cyber-security was becoming a focus of national security, Michael was with Dave DeWalt, the CEO of McAfee, right before Intel acquired his company for $7.8 billion.
This all means the entire world is constantly seeking Michael's insight.
In addition to being a regular guest and panelist on CNBC and Fox Business, he is also a Pulitzer Prize-nominated writer and reporter. His first book Overdrawn: The Bailout of American Savings warned people about the coming financial collapse - years before the word "bailout" became a household word.
Silicon Valley defense publications vie for his analysis. He's worked for Defense Media Network and Signal Magazine, as well as The New York Times, American Enterprise, and The Wall Street Journal.
And even with decades of experience, Michael believes there has never been a moment in time quite like this.
Right now, medical breakthroughs that once took years to develop are moving at a record speed. And that means we are going to see highly lucrative biotech investment opportunities come in fast and furious.
To help you navigate the historic opportunity in biotech, Michael launched the Bio-Tech Profit Alliance.
His other publications include: Strategic Tech Investor, The Nova-X Report, Bio-Technology Profit Alliance and Nexus-9 Network.