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Finerman: Potential In Rejected Bid for Billabong

Monday, 27 Feb 2012 | 6:53 PM ET

Go long on Billabong, “Fast Money” pro Karen Finerman said Monday.

The popular brand of surf apparel and accessories rejected a takeover offer of $3 AUS ($3.20 USD) per share from TPG Capital, with founder and major shareholder Gordon Merchant calling the price too low.

Billabong Rejects $3/Share Bid
Surfwear retailer Billabong rejects a takeover bid by TPG saying it undervalues the company.

But Finerman of Metropolitan Capital Advisors thought there was more upside potential.

“I don’t think it’s over yet,” she said. “Billabong has a strong name.”

While the company “definitely” made missteps, particularly in recent costly acquisitions, Finerman said that the company still held value.

Last week, Billabong agreed to sell its Nixon brand to competitor Trilantic, and TPG still raised its takeover bid, leading Finerman to believe someone — TPG or someone else — will buy Billabong.

“I think there’s still tremendous upside in this company, even with them restructuring with the sale of Nixon,” she said.

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Trader disclosure: On Feb. 27, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Nathan is long (AAPL) Puts; Nathan is long (BAC) Puts; Nathan is long (DELL) Puts; Nathan is long (LNKD) Puts; Nathan is long (PCLN) Calls & Puts; Nathan is long (XLK) Puts; Nathan is long (VIX) Calls; Finerman is long (JPM); Finerman is long (AAPL); Finerman is short (SPY); Finerman is short (IWM); Finerman is short (MDY); Adami is long ( C); Adami is long (GS); Adami is long (INTC); Adami is long (AGU); Adami is long (NUE); Adami is long (BTU); Adami is long (MSFT)

For Anthony Scaramucci
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Nations is long ( C)

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Raymond James & Associates makes a NASDAQ market in shares of PCLN.

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Oppenheimer analyst who covers (GS) has long position

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