Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev | Next
Author: Hochizen Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 113  
Subject: Takeover hints Date: 3/31/2004 11:42 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
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!
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev | Next


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
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.