Some food for thought...
I am seeing quite a few mergers, acquisitions and takeovers in the tech sector of late and thought I would add a couple more posts in that direction. It is expected, as with the maturation of the last two years tch sctor growth we xpect to see some consolidation. Companies that started out with a few products/services need to expand to stay competitive and maintain market share. The acquisitions have the added benefit of bolstering quarterly reports in an earnings-sensitive market. Th next two 'columns', if you will, put forth a simple calculation for determining a companies Break Up Value, and the general Signs of Takeover Candidates. These are worth knowing as some enormous profits and losses can be had...depending on whether you buy into the right one, or sell in time if you are holding one. This is part of scenario I am working on that says the Financial/Acuisition/Bond nvironment will change in the first quarter of 98. Basically, the funds move more money to bonds, depressing yeild, then the financials leverage this condition and fuel acquisitions, thus creating some wild price swings. This is independent of the Bull/Bear market issue, and may explain some fund and bond activity I'm noticing. At any rate, I had some time on my hands this afternoon and finally got the stuff ready to post. Its better than talking about the oil sector at any rate...(only kidding, Jenna).
One last note - Jenna's and my posts on how to use news may seem polar positions, but really what they show is that there is a whole spectrum of how to use any information. What one does should fit their trading style and abilities. It should be what works for you. We both will find many of the same stocks using different methodologies, as there is no 'right way' - we play earnings differently as well, and both ways work.
lastshadow |
