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M&A Lessons from 2008: Take the Money and Run

The challenge this year is no one is willing to start the bidding price out of fear. Yet when the merger offers do start, they will fly. At that point many takeover candidates will be low balled and they will probably accept the offer. Shareholders will get a pitance because managements will be itching to show a capital gain in stock at almost any price. The positive of it all is a lot of inventory taken off the market, thereby creating greater demand ( hopefully ) for the quality stocks that remain.

No Media Bailout

It seems that TWX ( I own the stock ) has only about 25 % of the business attached to the economic slowdown. It is more of a content based business and can generate recurring revenue on a long term basis. Not only is it at less risk than it's competitors, but they are trying to unravel the mass amounts of non core assets they have. As a shareholder who is as disgruntled as any other, at least TWX didn't buy the weather.com property at an overinflated price. They spun off the cable property for a nice 10 billion dividend payment, and they have rolled new line cinema into the Warner brothers division. They have walked their walk so far. What remains is to dispose of AOL and possibly restructure or sell the magazine division. ( Frankly, at 10 dollars a share i'm a little surprised they haven't defended the stock by announcing a huge stock repurchase plan. ) In fact, all the media companies should really step up and defend the very businesses they are in by letting the world know that they are buyers of their own stocks.

After Big Market Declines, Value Does Best

I have certain stocks that fall in the deep value area. I think there has to be a catalyst that will ignite an interest in them. My three are Ford, Time Warner, and Micron. I feel that all three are poised for a great 08.
If Ford is taking production off line. Should help the supply and demand side. TWX is reporting with a new CEO in Feb. Has 5 units ready to explode. Micron is so leveraged to any tech growth at all. The slightest hint that global growth will continue should propel that up quickly. Any thoughts?

Rep. Kaptur Gets Very Confused on Bernanke

grandstanding. sorry for spelling error. :)

Rep. Kaptur Gets Very Confused on Bernanke

The best part of it was when Ben told her that Fannie Mae was the company that did the majority of securitization and actually started it.
She wanted to villify the brokerage firms and politcize it. She wasn't ready to hear the Democrat's baby played any part in the problem. This just shows how politicians on both sides of the aisle don't really know or even care about the actual facts. They spend to much time grandstanting against each other for points with their own party.