John Hughes jhughes@epiphanyresearch.com 212-692-6391
Here we are again. Another Monday and takeover news dominates the headlines. It seems there is still value out there and if the “pros” see value, then maybe why shouldn’t everyone else. This is creating a little euphoria. Of course, the number of takeovers and LBO’s is, in itself speculative activity, and this is typical during late stage advances. For now, the market continues to push higher. The seasonal upward bias should keep stocks moving higher this week and this merger news is as good a catalyst to get the week off to a good start. We wouldn’t get too caught up in all the hype. We favor the large capitalization names as this is where the underlying demand remains strongest and the risk reward is the best at this point in this divergent rally.
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