From Marketwatch: Publicly traded companies are often
acquired at a large premium to their market price pre-announcement, and so
rumored takeovers—whether or not they turn out to be true—can cause speculators
to pile into the stock. These stocks aren't necessarily good buys, but
certainly investors considering buying (or shorting) them should be aware of
the potential for a takeover. Here are five stocks which have been the subject
of recent takeover rumors:
Billionaire activist Carl Icahn has taken a large stake in
Netflix NFLX +0.05% and there has been
some speculation that he might push to sell the company. He owned 5.5 million
shares as of the beginning of this year (find Icahn's favorite stocks). Other
analysts have claimed that Netflix could be a target purchase for a large
technology company such as Microsoft to help win the "living room
wars" between different consumer devices. Netflix's stock price has been
very volatile over the past few years, and is quite expensive at present with a
forward earnings multiple of 69.
There is a good deal of resistance to the idea, but analysts
continue to suggest that CBS CBS +0.84%
might merge with Time Warner TWX +1.27%
…..
Wait…wait…there’s more at http://www.marketwatch.com/story/5-takeover-rumors-hedge-funds-are-betting-on-2013-05-02?link=MW_latest_news
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