Message Font: Serif | Sans-Serif
 
No. of Recommendations: 4
By the numbers Disney's stock looks like a good deal (on a risk/reward basis).

What holds me back is the current spate of companies frantically chasing add-on acquisitions, believing in the magic of synergy that will accelerate earnings growth. In other words: win; win.

Yet, many acquisitions turn out to be mistakes, or at best zero sum. Further the acquiring companies happily pile on debt believing they can pay it down comfortably when those extra earnings begin rolling in. Given a "me too" trend in pricey acquisitions, and a rising interest environment, there's probably more risk involved in some companies ambitious deal-making than rosy forecasts suggest.

kelbon
Print the post  

Announcements

When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement