Hi Mike,
As part of your dislike for FRE and FANM valuations, is the possible loss of their franchise of low cost capital from changes Phil Grahm may take?
As we all know, a big factor in the rise of valuations is the stock for stock deals over the past few years. Now we are seeing more of this in Europe;
Officials at Telecom Italia formally accepted a proposal
Wednesday to merge with Deutsche Telekom, after receiving reassurances the new company would not fall under the control of the German government.
The deal, worth about $79 billion, could be the biggest merger in history, creating Europe's largest telecommunications company to compete with overseas giants like AT&T (NYSE:T - news) of the
United States.
Under the deal, each share of Deutsche Telekom will be exchanged for three ordinary voting shares of Telecom Italia stock, valuing each share in the Italian company at $12.28.
In addition, Telecom Italia's savings shares will be exchanged at a rate of 5.61 for each share of Deutsche Telekom.
Recently saw a chart of the stock for stock bank mergers happening in europe, had one of those parabolic curves like a lot of charts do lately. As this spreads to other sectors the valuations will rise without any new money comming in.
What's giving you the signal to buy DOW puts at this time?
I don't post as much, but usually catch this thread, thanks,
later, art |
