Share This Article

Facebook LinkedIn
Twitter Reddit
Print Email
Pinterest Gmail
Yahoo
Money Morning
×
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
  • Retire
    • Income Investing Guide
    • Retirement Articles
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
Login My Member Benefits Archives Research Your Team About Us FAQ
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
    ×
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
    ×
  • Retire
    • Income Investing Guide
    • Retirement Articles
    ×
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    ×
  • Subscribe
Enter stock ticker or keyword
×
5 Ways to Beat the Fed (and Crush Inflation)
Twitter
Tags: Hot Stocks

Find the Best Stocks to Buy Now as M&A Activity Heats Up

By Diane Alter, Contributing Writer, Money Morning • February 7, 2013

Start the conversation

Comment on This Story Click here to cancel reply.

Or to contact Money Morning Customer Service, click here.

Your email address will not be published. Required fields are marked *

Some HTML is OK

The return of major deal making in 2013 could deliver huge profits to investors who know the right stocks to buy now.

After the financial crisis, deal making - once quite common a decade ago - came to a near halt. But corporate mergers, takeovers and LBOs started heating up at the end of last year.

The last three months of 2012 saw the highest three-month deal totals and highest deal spending in the past two years, with the year ending on a high note.

According to FactSet Research Systems Inc., "U.S. M&A activity went up in December, increasing by 20.2% with 918 announcements compared to 764 in November, the second largest increase in 2012."

The trend is expected to accelerate further this year.

Standard & Poor's predicts a whopping $1 trillion in mergers will be announced in 2013. That would be an 11% increase over last year and would mark the first time mergers would hit the $1 trillion mark since the Great Recession.

LBO volume is also expected to trend higher this year. LBO volume dipped in 2012 to $98 billion, down from $111 billion in 2011.

In fact, Dell Inc.'s (Nasdaq: DELL) announcement Tuesday that it agreed to a leveraged buyout (LBO) with Silver Lake Partners stoked plenty of talk about the best stocks to buy ahead of increased M&A activity in 2013.

Dell's $24.4 billion LBO wasn't the only activity fueling 2013 deal talks.

Sign up for SMS so you never miss special events, exclusive offers, and weekly bonus trades.

Also announced was a $16 billion deal between John Malone's Liberty Global (Nasdaq: LBYTA) and U.K. television and Internet provider Virgin Media (Nasdaq: VMED). In addition, rumors swirled Tuesday that Hewlett-Packard Co. (NYSE: HPQ) is considering breaking up the company.

What's Fueling the Deal Making?

Several factors are behind the robust wheeling and dealing expected in the months ahead.

"It's not just money coming into the market and money idling at deal hungry investment shops that's going to stimulate mergers, acquisitions, spin-offs and public offerings," said Money Morning Capital Wave Strategist Shah Gilani. "There are trillions of dollars of cash just sitting on the sidelines looking for a deal. That means deal action-of all kinds-is about to get white hot."

Thanks to strong broad-based gains in equity markets, sellers have more bargaining room to negotiate for a higher bid as their share prices have risen.

Every industry will be looking to make deals this year, according to Gilani, adding that all the deal making will propel markets to new highs.

"With the power of deals to lift equity markets, it's not a matter of when we break above the old 2007 market highs, but how high they will go," he added.

You Can Find the Best Stocks to Buy Ahead of These Monster Deals

So how do investors spot the best stocks to buy so they can profit from this frenzy of deals?

The real money makers, the ones that will give investors gains that will far outpace average market returns, are usually only privy to a select group on Wall Street.

As Gilani explains in a new report, the best way to find the most profitable stocks to buy in this environment means to think like the Wall Street dealmakers themselves.

If you do, you can get a bigger chunk of the profits - which in previous deals have outgained the market nearly 40 to 1.

Gilani describes the ins and outs of the profitable world of Wall Street dealmaking and delivers six more opportunities that are "white hot" right now in this new free report.

Check it out here, before you miss the next megadeal.









Related Articles and News:

  • Money Morning:
    Deal Making Is About to Get White Hot
  • Money Morning:
    Why Dell Had No Choice But To Go Private
  • S&P:
    Lookout Report: Stay Tuned: U.S. Economy Poised To Deliver On Expectations For Record Corporate Earnings in 2013

Join the conversation. Click here to jump to comments…

Login
guest
guest
0 Comments
Inline Feedbacks
View all comments


Latest News

June 2, 2023 • By Nick Black

Market Roundup: Digital Assets to Watch for the Weekend of June 2

June 2, 2023 • By Shah Gilani

earnings
How to Profit on a "Bankruptcy Wave" Hitting Markets Hard

June 2, 2023 • By Garrett Baldwin

Postcards: Take Gains Ahead of OPEC
Trending Stories
ABOUT MONEY MORNING

Money Morning gives you access to a team of market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

QUICK LINKS
About Us COVID-19 Announcements How Money Morning Works FAQs Contact Us Search Article Archive Forgot Username/Password Archives Profit Academy Research Your Team Videos Text Messaging Terms of Use
FREE NEWSLETTERS
Total Wealth Research Power Profit Trades Profit Takeover Penny Hawk Trading Today Midday Momentum Pump Up the Close
PREMIUM SERVICES
Money Map Press Home Money Map Report Fast Fortune Club Weekly Cash Clock Night Trader Microcurrency Trader Hyperdrive Portfolio Rocket Wealth Initiative Extreme Profit Hunters Profit Revolution Quantum Data Profits Live Trading Alliance Trade The Close Inside Money Trader Expiration Trader Flashpoint Trader Darknet Hyper Momentum Trader Alpha Accelerators Weekly Profit Cycles Brutus Alerts Resource Traders Alliance

© 2023 Money Morning All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning.

Address: 1125 N Charles St. | Baltimore, MD, 21201 | USA | Phone: 888.384.8339 | Disclaimer | Sitemap | Privacy Policy | Whitelist Us | Do Not Sell or Share My Personal Information

wpDiscuz