Quick Win by the Algorithm: Axiall Corporation (AXLL)

Quick Win by the Algorithm

Axiall Corporation (AXLL)

On May 13th, 2016, the I Know First algorithm gave a bullish signal of 14.98 for the ticker AXLL with a predictability indicator of 0.29. In accordance with the algorithm’s prediction, AXLL jumped 41.80% in the following month.

quick win


Axiall Corporation (AXLL) is a global manufacturer and provider of chemicals and building products, working to responsibly harness applied chemistry to solve common problems, both in the United States and internationally.

AXLL stock prices saw significant increases following the announcement the Westlake Chemical (WLK) would be acquiring the company. The two companies said in a joint statement that the result of the merger would be the creation of the “third-largest chlor-alkali producer and the second-largest PVC producer in North America”.

Westlake Chemical agreed to pay $33 per share to AXLL shareholders, coming to a total of approximately $3.8 billion total. The deal includes all debt and liabilities and was agreed to by the board of directors for both companies. While the deal is expected to close by the end of the fourth quarter of this year, there will be an investigation to determine if it is fair for Axiall’s shareholders.

A law firm is investigating the agreement to determine if the board of directors for Axiall Corporation acted in the best interests of the company’s shareholders. The price of $33 that Westlake agreed to pay is about $7 less than Axiall’s 52-week high of $40.10. Plus, the company recently released the earnings report for the first quarter, revealing an increase in net income of close to $5 million year-over-year.