Item two from our original post on Jan 6, 2009 http://street-cents.com/2009/01/06/2009-key-market-items-to-watch/ is getting even more action as of late.
IBM sets it’s sights on Sun Micro Systems this morning in a deal worth and estimated $6.5billion and the mega mergers in Health Care continue.
As a quick review:
2. Company buy outs need to commence. Valuations are low, brave/smart companies need to step up to the plate and begin buying out smaller companies at great prices.
From our Q1 2009 Newsletter:”
Company buyouts will be an excellent sign of progress in the markets as well. There is no doubt that valuations are extremely cheap and many bargains are available for not only investors, but publicly traded companies as well. As company executives gain confidence in the future we feel there will be many buyouts. Interestingly the movements of companies towards buyouts will reveal not only a more positive tone towards the markets, but will also identify possible strengths as well. Companies that are confident enough to make purchases may turn out to be stronger and better investments than their competitors as they add additional revenues through buyouts at this time. Of course it is easy to overpay or make unwise buyouts even give terrific valuations at this time.”
Patience! JK.