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If one thing's clear from this year's ridiculous market whipsaws, changing North Korean narrative, and plunging crypto prices, it's that a lot can happen in just the first five months of a new year.
Nowhere is that more apparent than in The Walt Disney Co.'s (NYSE: DIS) potential $52 billion acquisition of most of Twenty-First Century Fox Inc.'s (Nasdaq: FOX.A) assets, a deal that seemed like a foregone conclusion when I first wrote about it in December.
But then Comcast Corp. (Nasdaq: CMCSA) jumped in with a counteroffer that Fox rejected in lieu of a deal with Disney. That didn't hurt Comcast's confidence, however, and the firm is now expected in June to propose a $60 billion counter-counteroffer.
On top of all this is the already full-fledged bidding war for British media giant Sky Plc. (LON: SKY), which has received offers from Disney, Fox (which already owns roughly one-third of the company), and Comcast. The British Panel on Takeovers and Mergers has ruled that if the Disney-Fox deal goes through, Disney must buy the 66% of Sky that Fox does not already own within 28 days.
All of these plot threads are quickly becoming more complicated than the Marvel Cinematic Universe on steroids.
Now, I typically don't give much attention to these deals, since I'm all about unreasonably good bargains - and these mega-deals often leave us with overpriced assets that aren't even worth a passing glance.
But the messiness of this Disney versus Comcast battle, as well as its ensuing governmental "oversight," opens up a unique profit opportunity I'm finding irresistible this time around...
About the Author
Tim Melvin is an unlikely investment expert by any measure. Raised in the "projects" of Baltimore by a single mother, he never attended college and started out as a door-to-door vacuum salesman. But he knew the real money was in the stock market, so he set sights on investing - and by sheer force of determination, he eventually became a financial advisor to millionaires. Today, after 30 years of managing money for some of the wealthiest people in the world, he draws on his experience to help investors find "unreasonably good" bargain stocks, multiply profits, and build their nest eggs. Tim tirelessly works to find overlooked "hidden gems" in the stock market, drawing on the research of legendary investors like Benjamin Graham, Walter Schloss, and Marty Whitman. He has written and lectured extensively on the markets, with work appearing on Benzinga, Real Money, Daily Speculations, and more. He has published several books in the "Little Book of" Investment Series and a "Junior Chamber Course" geared towards young adults that teaches Graham's principles and techniques to a new generation of investors. Today, he serves as the Special Situations Strategist at Money Morning and the editor of Peak Yield Investor.
So far you are dead wrong about the $30 Oct. puts on FOX, they are dead as well !