I'm not a big fan of takeover stories. These things always seem to come when you least expect them. For me, waiting for a takeover is like waiting for Godot. I generally trade the stock technically (just like any other stock), which for me, means buy pullbacks to the trendline, sell trend breaks and take profits on any big spike up.

When a takeover candidate is in consolidation mode and trading sideways (like KMK), I treat it as cash. For example, I sold some of my Venture stocks in early January, so I decided to park some of the cash in KMK. I had no good use for the cash, so as long as the stock didn't break down technically, I had the potential upside of a takeout. But a couple of days ago it started to look like the market was close to a bottom, so I sold my KMK in order to buy things that had the potential for a quick move up. If it does get taken out and I miss 50%, so be it. The stuff I play with (like PAL & PLG) do that every 2-3 months anyway. And if the opportunity arises in a month or two, I may again park cash in KMK.