Right. That's what I was thinking. Which leads to the next concern, what should an investor do now? Reminds me of Bristol Myers Squibb, after they bought Squibb. When the stock was down, lots of mention in the press about the difficulty in merging two distinct cultures. Even now, years later, with the stock near new highs, still see references to the differences. (Aside: this stock- BMY - might have gone down for a number of reasons - not necessarily because of, or just because of, the culture clash).
Ultimately, I guess, with good product and okay management, these drug companies survive and prosper and this is reflected by higher stock prices. And I suppose the merged HOE could be in that category. But that's ultimately. It would not surprise me to see the stock price of the new HOE merged co. remain flat for several years or maybe more likely, lag the rising share price of its competitors. Or perhaps dropping faster than competitors if the stock market tanks.
So what's a poor HOE investor to do ?? -g- (For me, I'm waiting to see what more the pundits and institutional analysts say.) Paul Senior |
