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When M&A Deals Start Flying, You'll Be Glad You're In These Stocks

In a new research report released Monday, Moody's Investors Service predicts a big upsurge in pharma/biotech-related M&A activity.

We totally agree.

In fact, we shared the same prediction with you ... in early January.

In that report, we told you that the five top Big Pharma companies alone had $70 billion in cash on hand - and would be looking to use at least some of it to avoid a plunge over the "patent cliff."

If you've acted on our biotech recommendations, you know this sector has been hot for more than a year.

But it could get even hotter.

This heightened M&A potential is bullish for biotech shares: The mere fact that companies are shopping can push up prices for all companies - and it increases the odds of a massive windfall gain if the company you've invested in becomes a buyout target.

Moody's sees it the same way. In addition to the hefty war chest of cash, Moody's researchers listed five reasons that buyouts would increase. Buyouts will escalate because:

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