BlackPacific Capital  - Tactical Investment Management
RSS

Recent Posts

The Big Lie Part 3: Stuck in Purgatory
The 500lb Gorilla in the Room
The Big Lie: Intro
The Saga Continues; Big Risks and Little Spare Capacity
They Say There Is A Lack In Demand

Categories

Weekly Market Assessment
powered by

BlackPacific Capital

Bring on the Consolidations!

Weekly Market Assessment
By:
 
Bring on the consolidations! Low interest rates have spurred a rush for acquisitions and are bringing competitors under one roof. Just over this past month numerous deals have been announced; Google bought Songza, Apple acquired Beats, Valeant is in a hostile takeover of Allergan, Whiting Petroleum bought Kodiak and now Zillow is in talks to buy competitor Truila. Along with these acquisition we are also seeing some companies announce that they "may" go private. Cheap money is out there and the big boys are taking full advantage of it. When the companies cash flow yield exceeds debt interest (if they take it on), while also being able to capture a larger percentage of their market, then why not! Another benefit of low rates has sparked the public-to-private leverage buyout, where companies who no longer want to deal with meeting wall streets expectation and can focus on running the company to their way. Dell was as of recent, the first major company to do this and now Rackspace, Lululemon and Sodastream are looking at heading in this direction.
 
Is this just the beginning or are we nearing the end of this most recent rush to acquire your peers and expand through synergies instead of organic growth. Have these companies reached an inflection point where organic growth is no longer achievable through cost cutting or the newest fade tax inversions. This constant and relentless demand from investors and institutional investors keeps a constant foot on the throats of these public companies to perform at its highest levels through the year. A slip up on one quarters earnings starts the never ending questions and the one question in particular that no company wants to hear is the dreaded, are they done growing?!             
                    
Making the Watchlist: Below are the stocks that I will be looking at over the coming months.  I will provide the the current stock price and why I am watching them. I will comment on them as I continue to keep an eye on them.  You will be able to see and follow their growth and/or decline. Chart links may be attached.
 
From the Trading Floor to the Option Pit: A quick look at whats on the trading desk:
S&P 500 (SPX) -As mentioned last week I sold a Vertical "CALL" Spread at 1985/1990, as this looks to be resistance and its former 52 week high. market sold off on Friday and the SPX ended the week at 1978, giving me an option gain of 6% 
 
Amazon (AMZN)- Reported earnings on Thursday after the close and disappointed on both the top and bottom line. As usual AMZN posted a loss of $0.27 compared to analyst expectation of a loss of $0.15. AMZN sold off over 10% to $317.20. I have purchase a Vertical "CALL" Spread at $320/322.50. I need AMZN to close next week above 322.50 to collect the entire option gain.   
 

3 Comments to Bring on the Consolidations!:

Comments RSS
emergency first aid at work on Tuesday, November 24, 2015 1:36 AM
Outstanding data to many people people love to understand content to understand in relation to these types of concerns involving excellent curiosity.
Reply to comment


https://australianwritings.net on Tuesday, August 14, 2018 8:01 PM
The inflation period is the time for the government to be worried about it and must be controlled so far. It is the duty of the government to create the new opportunities for the jobs for the unemployed people and give them the chance of employment.
Reply to comment


Purwoso Warsito Utomo Himawan on Wednesday, February 06, 2019 7:50 AM
ecara pribadi, saya menganggap penghinaan ini tidak blink 3 agen plat high tensile sm490 yb agen plat high tensile sm490ya agen plat kapal agen plat stainless ss304 agen plat stainless ss310 agen plat stainless ss316 agen plat sumihard agen round bar besi aisi 440s45c agen round bar scm440 agen steel rail undangan pernikahan undangan pernikahan Distributor plat besi hitam Distributor plat besi hitam undangan pernikahan bentuk tas Agen besi beton interworld steel is undangan pernikahan modern Toko Plat Bordes Kembang Distributor Pipa Besi baja Schedule Sch 40 Distributor besi cnp baja Harga plat besi hitam Harga plat besi hitam undangan pernikahan biru Agen besi beton gunung garuda undangan pernikahan biasa Toko Plat Besi Hitam Supplier Pipa Besi baja Schedule Sch 40 Harga besi cnp baja www.pusatbesibaja.co.id Jual plat besi hitam Jual plat besi hitam undangan pernikahan biasa sewa villa bukit danau Agen besi beton delcoprima undangan pernikahan bahasa inggris islam Toko Plat Kapal Bki Krakatau Steel Agen Pipa Besi baja Schedule Sch 40 Jual besi cnp baja www.pusatbesibaja.com Supplier plat besi hitam Supplier plat besi hitam undangan pernikahan bagus Agen besi beton cakra steel cs undangan pernikahan cantik elegan Toko Jual Besi Siku Baja Toko Pipa Besi baja Schedule Sch 40 Supplier besi cnp baja Toko plat besi hitam Toko plat besi hitam undangan pernikahan bermanfaat Agen besi beton bjku undangan pernikahan akrilik Toko Besi Unp Baja Profil Kanal Jual Pipa Besi baja Schedule Sch 40 Toko besi cnp baja Supplier besi beton Sni Ulir Polos polos ulir Agen plat besi hitam Agen plat besi hitam undangan pernikahan akrilik Agen besi beton Sni Ulir Polos undangan pernikahan bentuk dompet Toko Besi Cnp Profil Baja Gording Harga Pipa Besi baja Schedule Sch 40 Agen besi cnp baja Supplier besi beton sii Pabrik plat besi hitam Pabrik plat besi hitam undangan pernikahan anti mainstream Agen besi beton ais undangan pernikahan coklat Toko Besi Hollow Pabrik Pipa Besi baja Schedule Sch 40 Pabrik besi cnp baja Supplier besi beton psi Ulir Polos Toko besi cnp baja Toko besi cnp baja undangan pernikahan coklat undangan pernikahan biasa Agen Besi Pipa Baja Schedule 80 Jual Stainless steel Toko besi beton krakatau steel Agen besi cnp baja Agen besi cnp baja undangan pernikahan cantik dan murah Agen besi beton Sni Ulir Polos polos ulir undangan pernikahan bunga Agen Besi Pipa Baja Schedule 40 Harga Stainless steel Toko besi beton jcac Pabrik besi cnp baja Pabrik besi cnp baja undangan pernikahan casual Agen besi beton sii undangan pernikahan artis Agen Pipa Besi Hitam Medium Pabrik Stainless steel Toko besi beton interworld steel is Distributor besi h beam baja Distributor besi h beam baja undangan pernikahan contoh Agen besi beton psi Ulir Polos undangan pernikahan modern
Reply to comment

Add a Comment

Your Name:
Email Address: (Required)
Website:
Comment:
Make your text bigger, bold, italic and more with HTML tags. We'll show you how.
Post Comment