Merger Monday Strikes Again

We saw about $15 billion in cash deals announced over this weekend, with El Paso and Brigham Exploration being the largest. Many have been scratching their heads over the recent strength in the markets. Hedge funds have been de-risking, investment advisers  have gone into defensive mode and individuals have been redeeming mutual funds. All that selling has been offset by corporations repurchasing their own shares and buying other companies for cash at a torrid pace.

 

2 comments:

Brent Barber said...

I don't have official stats, but this big Merger Monday is becoming a regular trend.

Just goes to show how cheap the businesses represented by the stocks actually are and the value available on Wall Street even after the recent run.

Tsachy Mishal said...

If you believe the $100 S&P 500 profit target for 2012 than the S&P 500 currently trades at twelve times 2012 earnings.