“Sell into the strength" - that's the surest way to profit from takeover speculation. Out of...

|By:, SA News Editor

“Sell into the strength" - that's the surest way to profit from takeover speculation. Out of 1,875 reported rumors about potential buyouts during 2005-10, only 14.5% actually materialized. While takeover speculation stocks initially jumped 2.9%, betting on declines yielded average profits of 1.2% in the next month, an annualized gain of 14%.