We've seen time and again how "takeover targets" provide the opportunity for truly explosive gains. The right company finds the right buyer, and investors gleefully strap in for a virtually instantaneous double- or triple-digit ride.
Deal-making in general has done some "exploding" of its own over the past few years. 2018 broke records, with some $3.3 trillion worth of dried ink in place by September. That figure was bolstered by the advent of so-called "megadeals" worth more than $5 billion.
Companies have finally figured out the mother of all corporate no-brainers: If you can't beat 'em… buy 'em.
They've realized there's no point in throwing millions (or billions) of your – scratch that, your shareholders' – dollars at a thorny R&D, tech, or PR problem when you can just ride out, find some smaller company that's already done the work, and… acquire, acquire, acquire.
So, when we come across a frenzy of M&A activity in an already rapidly growing, high-profit sector like legal cannabis, it pays to stop and take a good hard look at what's happening.
Let's take a look at how powerful a moneymaker marijuana deals could be next year…
About the Author
Greg Miller started working on Wall Street in September, 1987, just a month before the “Black Monday” stock market crash.
During his career there, he became an expert in just about every kind of publicly traded security - from blue-chip and small-cap stocks to municipals, junk bonds, and derivatives. As a portfolio manager, Greg was responsible for over $500 million of assets in mutual funds and insurance company accounts.
After leaving the Street, he designed a successful options trading strategy and made lucrative tech investments for a financial publication. He has also helped develop new products and worked with other editors to hone their strategies. He’s always been dedicated to deep, fundamental research - and he always will be - because he believes buying the very best companies at the right price is the best way to amass wealth in the stock market.