Does a public owned company lose or gain value when it sells to a private equity investor?

When I say lose or gain i'm refering to the stock market.There is a stock i have been monitoring and im wondering if i should buy right now before it EXPLODES.

Usually,
The buyer pays a little bit of a premium to shareholders.(no EXPLOSION though).It really depends on the price you paid vs thethe takeover price.Oftentimes, the news is leaked to insiders etc. and the stock moves up a little in anticipation of it.
It is better to buy good companys that have a "beaten" down price.
Then holding for the "rebound".
Subscribe to Morningstar (the free part) and keep "speculation" to a minimum.
Good Luck...

If the transaction is an honest one and there is no fraud in it, then the stock price usually gains when there is an event such as a take-over, because the buyer tries to offer a price that would be attractive. But there may be all sorts of strange situations too :)

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