Papa Murphy’s Merger

As I’ve written before, anyone following the Magic Formula strategy has the responsibility to keep an eye on the portfolio. Today this revealed that, on May 28th of this year, there was a merger of Magic Portfolio company Papa Murphy (FRSH) with MTY Food Group, which I’ve never heard of. Come to think of it, I’ve never heard of Papa Murphy’s either. I replaced this with Magic Formula Stock AbbVie (ABBV). My Magic Portfolio is still performing abysmally, but the good news is that I made money on this corporate action. My cost basis on Papa Murphy was $1,790.21, and the merger bought them from me just over 4 months later for $2,431.65. I bought less than $1,600 of ABBV, leaving some cash on the table for balancing purposes.