Shares of Bid.com (Nasdaq: BIDS), a Canadian auction service, gained more than 27 percent on Wednesday, climbing 1-9/32 to 6 as rumors began to circulate on online message boards about the possibility of the company being acquired. Bid.com would be a relatively inexpensive takeover target for a company like eBay. Even after Wednesday’s gain, the company is worth only about $296 million, and the stock is well off its 52-week high of 22-5/8.
Despite this fact, investors should be cautious about buying a stock on this kind of speculation. Shares of Beyond.com recently got a boost as rumors floated about the company being bought by Amazon.com. That deal has not happened, of course, and shares of Beyond.com are well off the range they traded in when the rumor was spreading.
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