Cabelas' Investors Shrug Following More Sale Chatter

Shares of Cabelas Inc CAB have climbed about 4 percent after a New York Post report said the outdoor retailer have opened its financial books to rival Bass Pro Shops and other potential suitors. http://nypost.com/2016/03/24/cabelas-hunts-for-potential-buyer-in-bass-pro-shops/ Sidney, Nebraska-based Cabelas was under pressure from activist investor Paul Singer's Elliott Management since October. The hedge fund, which owns an 11 percent stake in the company, had urged Cabelas management to consider options to boost stock price, including a sale. In December, the company announced that its Board was initiating a process to explore and evaluate a wide range of strategic alternatives to enhance value for the shareholders. According to Post, Bass founder John Morris, who controls the closely held Springfield, Missouri-based company, has long wanted to buy his closest rival. Last month, Cabelas reported fiscal 2015 net income of $204.7 million compared to $207.1 million last year, and adjusted EPS of $2.88, flat with last year. Total revenue rose to about $4 billion from $3.65 billion in 2014. For full-year 2016, the company expects a high-single-digit growth rate in revenue and a high-single-digit or low-double-digit growth rate in EPS. Shares of Cabelas grew 3.34 percent at $47. For the past 52-weeks, the shares are trading in the range of $33.03 - $58.56.