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Profiting from More Retail Store Closings

Deals do need examining for sure. But its a way to pick up companies on the cheap...much like Bank of America did with Countrywide and Merrill Lynch.

These companies were between a rock and a hard place.

However, the main point is that if a company feels strong enough that they can take on a company and help it recover, then it feels its balance sheet can support it while it recovers.

It's just one way for the "non-balance sheet savvy" to get an idea of how strong a company feels that they are. If they feel they can handle the extra load, then they are likely a good bet (as far as their own survival).

Once this all blows over, Bank of America will be in a better position having scooped up the other two companies at "distressed" levels.

Thanks for reading and commenting on the post. I appreciate it.