Holding my Feet to the Fire…
Forgive me for today’s brevity.
But later today, around 4:30 PM EDT, I’m scheduled to break jaw-dropping news.
I still have one remaining dot to connect, so I’ll be brief.
I’m warning you…
This news could shake the world off its axis. (At least for a few days.)
To prepare for the announcement, here’s what I need you to do…
Please review the biggest takeovers of 2017 so far…
- $49 billion, Reynolds American (RAI)
- $9.1 billion, VCA, Inc. (WOOF)
- $24 billion, C.R. Bard (BCR)
- $7.5 billion, Panera Bread (PNRA)
- $17.9 billion, Mead Johnson (MJN)
- $6.9 billion, Staples (SPLS)
- $15.3 billion, Mobileye (MBLY)
- $6.7 billion, Rice Energy (RICE)
- $13.7 billion, Whole Foods Market (WFM)
- $6.4 billion, VWR (VWR)
Now, here’s where it gets interesting.
If I’m right, the next takeover will make the above 10 look absurdly tiny.
Of course, insiders will clean up.
You deserve a chance to crash their profit party.
Did you notice that I only listed the takeover targets (above), and not the suitors themselves?
Honestly, the suitors don’t matter.
Why? Because it’s the takeover targets — I prefer to call them “M.A.R.K.E.D. stocks” — that blast upwards of 200% on acquisition news.
Shares of the acquiring company often barely budge.
As to the timing of my announcement, it’s not coincidental…
The mergers-and-acquisitions market is hotter than ever right now.
M&A Hits Hyperdrive
The M&A market saw two killer takeovers last week alone.
Maryland-based spice-maker McCormick & Co. Inc. (MKC) announced a $4.2 billion bid to buy the food business of Reckitt Benckiser Group Plc (RB.L).
The acquisition adds well-known condiments French’s mustard and Frank’s RedHot sauce to McCormick’s offerings.
McCormick paid a hefty takeout premium for the business, too.
Clocking in at 20 times EBITDA, that’s 23% higher than the long-term average for deals in the sector.
Next up is luxury consumer goods heavyweight Michael Kors Holdings Ltd. (KORS).
The company announced a jaw-dropping deal to purchase London-based high-end shoemaker Jimmy Choo Plc (CHOO.L).
The bid price? $1.2 billion.
That represents an 18% premium over Jimmy Choo’s closing price on Monday.
And the deal comes on the heels of rival Coach Inc.’s (COH) $2.4 billion purchase of Kate Spade & Co., also a pricey acquisition.
So what does all of this mean?
The red-hot M&A market shows no signs of cooling anytime soon.
As sales slow for cash-flush companies with rabid shareholders to appease, they’re leaning ever more on “growth by acquisition.”
And as rival companies drive up the cost of acquiring firms, the payouts for investors – those strategically positioned in coveted takeover targets — rise too.
In other words, the more that companies pay (or overpay) for acquisitions, the more money you stand to make.
Indeed, takeovers hand ordinary investors the highest and fastest gains the stock market has to offer.
Whenever a stock is “marked” for a takeover – 100% of the time, the stock goes UP.
It’s simply a rule of the system, like gravity for the stock market.
To that end, we’ve designed a way for readers to get positioned before these takeover announcements hit – allowing you to pocket massive gains.
If you want to see a detailed list of the current takeover targets we’re tracking – and how to access our exclusive acquisition research going forward – click here now.
Ahead of the tape,
Chief Investment Strategist, Wall Street Daily