This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Three Stocks Poised to Lose Their Independence

NEW YORK ( TheStreet) -- As we celebrate U.S. independence on July Fourth, it's worth looking at three troubled companies that may soon lose theirs.

There are plenty of other companies that are doing well and have solid balance sheets with plenty of cash.

When companies have a significant cash hoard, investors often pressure them to issue dividends or buy back stock. But investors can also demand that companies put that cash to work with acquisitions. With so many stocks trading at depressed levels right now, I suspect the next two quarters will bring about plenty of M&A activity.

So without further ado, here are three companies that will be likely takeover targets:

Research In Motion (RIMM)

What would an M&A discussion be without Research In Motion? The company has shown a chronic inability to walk and speak at the same time.

The three main suitors for RIM should be Facebook (FB), Sony (SNE) and Microsoft (MSFT - Get Report).

You can find my case for Facebook and Sony in "RIM up for Sale: Why Facebook or Sony Will Close the Deal."

But the more likely candidate is Microsoft, which I wrote about in "Will Microsoft Save RIM From a Certain Death to Beat Apple?."

There are many reasons a Microsoft acquisition makes sense.

All Microsoft would need to do following an acquisition would be to spend spend a few hundred dollars per RIM user to offer replacement phones using the Windows Mobile operating system that also have the BlackBerry email service and RIM's popular BBM messenger service.

That would quickly quadruple Microsoft's Windows smartphone market share.

What's more, a deal would redirect Microsoft's focus to where it should have been in the first place: attacking Google (GOOG) and the phones and tables that use the Android operating system.

I think Android's success has hurt Microsoft more than Apple (AAPL) iPhone, and Google has become a threat not only to Microsoft's phone business but also to its Office and operating-system businesses.

Whether Microsoft does a deal remains to be seen, but a deal makes perfect sense.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AMZN $507.08 0.00%
NFLX $87.40 0.00%
MSFT $50.50 0.00%
YHOO $27.04 0.00%
AAPL $93.99 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs