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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.

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