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Investing/Strategies / Takeovers
|Subject: Takeover hints||Date: 3/31/2004 11:42 AM|
|Author: Hochizen||Number: 82 of 110|
Just running through the things to consider when looking at a takeover candidate. Hopefully, others will run across some of them when reviewing stocks, and post the leads here....
1. Insider buying (hopefully from lower level officers who don't have as much cash as the CEO)
2. A stake taken by a third party in the company (not a fund manager....but a potential buyer).
3. Death or retirement of the CEO who founded the company (often the family will want to cash out of the business)
4. Consolidation in the industry.
5. Spinning off or selling non-core assets makes the business a "pure play" for a potential suitor.
6. Membership on the board of directors by an officer/director of a possible suitor.
7. Statements that the company is considering ways to "maximize shareholder value."
8. Buyout of a competitor.....a smaller company may be bought out by another larger one in efforts to boost market share.
9. stock buyback programs (obviously not a sure sign, but if combined with some of the other criteria).
10. Activist shareholders who whine that the business isn't being run well and that "alternatives" should be explored.
The beautiful thing about takeovers is that in many cases businesses are too small for fund managers to buy, and sometimes there isn't ANY analyst coverage.
Let's hope there are some good leads!
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