This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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!

Is It Too Soon to Call 2014 a Year of Mergers and Acquisitions?

Two months in and 2014 is already racking up some serious mergers and acquisitions. Is there more to this trend?

Last month we wrote an article about Davos, speculating that companies who missed the event may have been lost a big opportunity to network in what is shaping up to be a big year for mergers and acquisitions.

Corporations sat on record amounts of cash at the end of 2013. Record stock-market gains and an improving economy meant that companies had huge reserves, and it was only a matter of time before they started to deploy all that dry powder. Lots of analysts were predicting that 2014 would be a year for M&A. 

Two months in and there's already enough evidence to suggest that the analysts were right. Signet (SIG) bought Zale Corp. (ZLC), Joseph A. Banks (JASB) is buying Eddie Bauer — and the last two weeks have seen two of the largest health-care mergers of all time. 

Financial journalists are having a hard time keeping up with all the activity. There are so many mergers and acquisitions going on that a billion dollar deal was announced in between starting and finishing this article. 

2014 stands to set some pretty important legal precedents as well.  Comcast (CMCSA) and Time Warner (TWC) are bracing for what will almost certainly be a legal battle to approve their merger, which would effectively put 19 of the 20 largest metropolitan areas on the same cable plan. 

Speculation about who will make the next deal is fueling a lot of movement in the market. Tesla (TSLA) posted a new record high after rumors swirled that it was a potential acquisition target for the techology giant Apple (AAPL). It's certainly not the craziest thing in the world to expect Apple would be attracted to a charismatic CEO like Elon Musk — even if some analysts are skeptical

We built a list of some of this week's largest mergers. Many of the stocks on it are up as much as 40% for the morning. 

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
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!
SYM TRADE IT LAST %CHG

Markets

DOW 18,135.72 +38.82 0.21%
S&P 500 2,101.04 +2.51 0.12%
NASDAQ 4,982.8090 +15.6680 0.32%

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