NEW YORK (Stockpickr) -- The recession of 2008 and 2009 turned out to be a godsend for many companies. The slowdown provided the opportunity to take a close look at expense structures, and many firms found ample areas to trim down. Those moves led to a steady spike in profit margins and an ever-rising pile of cash. The multi-year restructurings often kept management so busy that there was little time to look outside the business onto the broader landscape.
Yet as we head into the middle of 2012, the corporate playbook may soon change. Companies are now quite flush with cash, but a still-slow economy means further sales and profit gains may be elusive in coming quarters. Remember that top executives are rewarded with a slew of financial incentives to deliver rising sales and profits -- and a growing stock price.
To make that happen, a lot of these executives are now likely to be more susceptible to the pitch from investment bankers. That pitch: "Why not go out and buy yourself some growth through selected acquisitions?" Growth-through-acquisitions has been a proven strategy in past economic cycles, and this one is no different.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV