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7 Hot Buyout Rumors

Most traders know that a buyout is one of the easiest ways for a stock to shoot up 20% or more overnight. When a public company gets acquired, the buyer often pays a significant premium over the market price, leading to instant gains for shareholders.

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Sears Shares Up 12% On Craftsman Short Squeeze

Sears Holdings Corp SHLD 2.91% was briefly halted Tuesday morning after the stock surged more than 14 percent and triggered its volatility circuit breaker. The large move was driven by a report fromBloomberg that the company is accepting bids for its Craftsman business through the end of October.