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Dana Blankenhorn
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Dana Blankenhorn http://www.danablankenhorn.com has been a business journalist since 1978, and a futurist all his life.He warned about the coming Houston oil collapse in 1979. He began making a living on the Internet in 1985. He launched the first e-commerce daily for CMP in 1994, warned of the... More
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Dana Blankenhorn and the War Against Oil
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Moore's Lore: Better and Better, Faster and Faster
  • New Deals Confirm A Return To Normalcy 0 comments
    Jul 9, 2012 3:43 PM | about stocks: WLP, CPA, FX, TRI, WLP

    Deal flow is starting to increase, putting a bottom into stock values.

    This weekend alone saw three deals announced.

    • WellPoint (NYSE:WLP) taking out AmeriGroup (AGP) for $4.9 billion, a 43% premium. This could be the first of many deals linking insurers to providers.
    • Campbell Soup (CPB) buying privately-held Bolthouse Farms for $1.55 billion from Madison Dearborn. It's a long-rumored deal that's primarily defensive for Campbell, which needs to find new markets for fruits-and-vegetables.
    • Thomson Reuters (NYSE:TRI) paying $22/share for FX Alliance (NYSE:FX), resulting in a 40% pop in shares. The agreement values the company at just under $625 million and is part of a longer term trend of consolidation in financial information.

    None of these deals is entirely unexpected or, in some ways, unusual. But like the recently-announced IPO of Kayak they represent a return to financial normalcy, a look across the chasm of present crises to fairly normal and benign business conditions.

    As such, they're bullish for the whole market, and the economy in general.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Themes: long-ideas Stocks: WLP, CPA, FX, TRI, WLP
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