Size doesn't matter? I am talking about how it doesn't seem to matter these days how big stocks are, it seems like they can be acquired.
For example, earlier today I was emailing with my co-writer Matt Horween about a stock he and I like the action in, notably American International Group (AIG). It's acting feverish. It seems to be in a frenzy, almost as if it is going to be taken over. Matt quickly reminded me that at a market cap of $78 billion it's too big to take over. But how about if it is in some sort of big deal that could be "takeover-like" as in Kraft (KRFT)?
Isn't that the lesson of the last few weeks? That almost no business is too big to be acquired?
Similarly, it does seem as if Altera (ALTR) doesn't want to be acquired by Intel (INTC), even for a price well in excess of its $13 billion market cap. I could argue that it isn't worth pursuing because they are already partners.
But how about Broadcom (BRCM)? Why isn't that one attractive? Because it is valued at $26 billion currently? That's no gating factor anymore.
You think General Electric (GE) can't do a $50 billion deal after it gets paid for a portfolio that it got top prices for?
I think that we are entering a golden age of activism/takeovers where companies use the last of the real cheap money to make major deals that may never make sense again. Some, like my colleague Doug Kass, seem to think this is the twilight hour.
I think it's the dawn.
Random musings: I think Qualcomm (QCOM) is a very big buy now that it has come in. Maybe even in the category of tremendous opportunity like Walgreens (WBA) was when Jana first struck. People, sadly, seem TOO skeptical for their own good.
