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Non-Tech : Kirk's Market Thoughts
COHR 139.28-0.5%Nov 14 9:30 AM EST
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To: Elroy who wrote (25565)8/14/2025 10:58:03 AM
From: robert b furman1 Recommendation

Recommended By
sixty2nds

   of 26514
 
The big acquisitions that thrive and last are when two competitors combine and in effect protect their margins vs compete on price.

LRCX,AMAT, KLAC all did that.

They gained from synergies and started to pay a nice and fast growing dividend.

Ten with excess cash bought back stock and bumped the dividend even more.

When a stock hits new highs it is a great way to buy bolt on industries that fit the global footprint of the industry.

When a successful CEO nears his future retirement, often selling to a company that has alargte dividend is a great incentive for an all stock transaction.

Those kinds of transaction are like a gift to large steakholders in the company, all the way down to the janitor.

They all get a bump in income that has a low tax rate to boot.

In cyclical industries high debt industries can be ruinous in trough periods of the industry.

Bob
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