A diary of the thought process behind my investment decisions
No Cash, No Care
A big deal was made last night because Stanley Works is acquiring Black & Decker. The deal is a stock for stock deal and is meaningless in my opinion. Cash deals are bullish because holders of the takeover target receive cash and are likely to put that cash to use in other parts of the market. In a stock for stock transaction holders of the target receive a different stock and the market effect is neutral.