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While Washington Stews, You Can Cash In on the Biggest "Tax-Inversion" Deal in History

Back in June 2012, we recommended that you pick up shares of Big Pharma player Abbott Laboratories Inc. (NYSE: ABT). The reason: Abbott was planning to split in two at the end of the year, meaning folks who took our advice would end up with stakes in two companies for the price of one.

There was more than bargain-basement thinking at work here.

You see, these corporate breakups – known as spin-offs – have a habit of turning into market-beating profit plays. And the newly minted spin-off firms often end up as takeover fodder – also at big profits.

Abbott followed part of that blueprint.

  • These Industry Powers Have Never Been More Scared industry powers

    Many investors are holding their breath even as they hold out plenty of hope looking at the recently announced deal between Apple and IBM.

    The upside, many say, is unlimited because it's such a brilliant move.

    Hardly.

    In fact, the deal reeks of desperation and unprecedented weakness.

    We've seen this playbook before... Full Story

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  • This Excellent Apple Stock News Means "Microsoft Had Better Watch Out" apple square

    The latest Apple stock news sent AAPL shares up 1.73% this morning (Wednesday).

    On Tuesday afternoon, Apple announced a "landmark partnership" with International Business Machines Corp. (NYSE: IBM). Together, the two companies aim to gain foothold in segments of the corporate world like healthcare, retail, and transportation. And they intend to use mobile to do it.

    Here are the details of the IBM-Apple deal – and how it will affect AAPL stock in coming months…
  • Dow Jones Today: Merger Mania Continues Dow Jones Today

    Dow Jones today, June 16, 2014: The Dow Jones Industrial Average posted gains on Friday, despite growing macroeconomic concerns. All eyes this week will focus on the Federal Open Market Committee meeting, which kicks off tomorrow.

    The Fed meeting isn't expected to provide any surprises. The central bank will likely maintain low interest rates and will likely continue tapering its bond-purchasing program by another $10 billion to a total of $35 billion each month.

    Here are the top stories that will be moving the Dow Jones today:
  • EPL Oil & Gas (NYSE: EPL) Soars 30% on $2.3 Billion Deal with Energy XXI (Nasdaq: EXXI) Oil Barrel

    EPL Oil & Gas Inc. (NYSE: EPL) agreed to be bought by main rival Energy XXI Ltd (Nasdaq: EXXI) Wednesday in a $2.3 billion deal billed as creating the biggest publicly owned independent oil producer on the U.S. Gulf of Mexico shelf.

    Energy XXI said it expects an enterprise value of about $6 billion after the deal is closed.

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  • Stock Market Today in the Red Ahead of FOMC

    The stock market today is off to a sluggish start as investors brace for a week of important economic indicators.

    Pending homes sales kicked off a week of tell-tale economic data this morning, while earnings season continues with Wynn Resorts Ltd. (Nasdaq: WYNN) reporting disappointing Q2 results.

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  • Cash-Rich Companies Share the Wealth with Trillion-Dollar M&A Activity in 2011 Mergers and acquisitions, or M&A activity, so far in 2011 has been a driving force in the stock market's positive performance.

    In fact, global M&A activity in the first quarter topped $799.8 billion, the most since 2007's pre-crash frenzy, according to a recent report in Forbes magazine.

    MergerInvesting.com, which tracks the M&A market, says 130 deals have either already been closed in 2011 or are currently pending. And, while the total number of global deals is down slightly from the same period in 2010, the actual value of the deals is up more than 55% (with deals involving U.S. companies accounting for 49.6% of that total - a 117% jump from 2010).

    Looking forward, most M&A analysts now predict more than $3 trillion in takeover activity for all of 2011.

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  • How to Profit from Hottest M&A Activity Since 2007 ... Read More...
  • More Mega-Deals to Come as M&A Activity Returns to Pre-Crisis Levels A flurry of early-year deal making has helped drive global mergers and acquisitions (M&A) activity to its highest level since before the financial crisis. And the M&A market still hasn't hit full stride.

    Cash rich companies and greater confidence in the overall economy are two big reasons for the turnaround. But international, cross-border deals have offered another catalyst for the spectacular growth.

    Total M&A deal volume was up 62% to $377 billion as of February 14, according to Thomson Reuters data. That's the highest level since 2007, and it's still on the rise.

    Indeed, global M&A activity in 2011 is expected to total more than $3 trillion this year, compared to $2.8 trillion in 2010.

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  • Deutsche Boerse/NYSE Mega-Merger More About Derivatives Than Stocks The merger yesterday (Tuesday) of Germany's Deutsche Boerse AG and NYSE Euronext Group (NYSE: NYX) will create the world's largest financial exchange. But most observers feel the deal is being driven more by the exploding market in derivatives and other exotic instruments than good old-fashioned stock trading.

    While the $9.53 billion all-stock deal creates the world's largest trader of equities, it's the chance to exp and the combined entity's presence in derivatives markets that held the real appeal, according to most observers.

    Under the terms of the deal, Deutsche Boerse shareholders will control 60% of the new company, with NYSE shareholders owning 40%. One Deutsche Boerse share will be exchanged for one share of the new company's stock, while each share of NYSE Euronext will be swapped for 0.47 share of new company stock, The Wall Street Journal reported.

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