This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

5 Stocks to Keep on Your M&A Deal Radar in April

Berry Petroleum

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Shareholders in oil and gas production firm Berry Petroleum (BRY) are having a great year. Since LinnCo (LNCO) announced on Feb. 21 that it would be buying the larger E&P for $4.17 billion in stock, shares of BRY have climbed close to 40%. But merger arbitrage aficionados take note: There's still a healthy 6% premium in the deal.

>>5 Stocks Ready to Rocket Higher in April

Berry owns oil and natural gas wells spread across six sets of assets spread from Texas to California. That U.S. focus means that Berry's assets don't have the potential upside of overseas production operations, but they also don't carry any geopolitical risk either. The firm's timing proved unfortunate heading into the financial crisis of 2008, as Berry levered up its balance sheet to buy a major acquisition in Texas -- but management's decisions to unwind positions in favor of balance sheet liquidity should be appreciated. Bear in mind that after this merger legacy Berry will still make up the lion's share of the combined firm's assets.

While the 6% of wiggle-room in the acquisition premium presents a potentially attractive profit for betting on this deal being consummated, investors should remember that the premium is there because at least some people think that the combination won't happen.

3 of 6

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DELL $0.00 0.00%
PCS $11.84 0.00%
BRY $0.00 0.00%
CWH $25.47 -0.12%
WMS $27.72 -0.14%


DOW 17,847.57 -288.15 -1.59%
S&P 500 2,068.76 -32.28 -1.54%
NASDAQ 4,921.6020 -61.2070 -1.23%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs