- Top M&A lawyers have publicly stated in the press that they have been really busy and there is a robust pipeline. Whether agreements get reached is a separate issue but the potential is there.
- It has never been easier and cheaper to borrow for large companies
- Many companies are sitting on a lot of cash, especially in tech and healthcare.
- A number of mega cap companies have publicly stated that they are on the hunt. Nestle, Sanofi and BHP come to mind immediately.
Why I Would Not Hold Short Over The Weekend
There is a good chance we see a Merger Monday as :
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2 comments:
I will remain short through the weekend, and will add to shorts on Monday. I feel there are too many people saying 'don't be short headed into the weekend.' I also beleive that M&A happens when sellers are willing to sell, which is usually not at rock-bottom prices.
Nice call on closing on the high. I increased my short position by about 10% on the close. I too am hearing everyone talk about "don't be short over the weekend". I also saw a lot of people talking about how oversold we were and "due for a bounce". So I expect there to be good supply if we open up higher on Monday.
We'll see what kind of follow through we get from here. I would be impressed if we were able to go more than another 1-2% higher.
I expect the 900s in a matter of weeks and the 800s in a matter of months on the S&P. I expect GDP projections to start getting hacked over the next few weeks, and the earnings estimates will come in after that.
JD
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