Takeover Mania, Part 1

By Andrew M. Gordon

The market has never seen so many companies searching for other companies to buy, creating more opportunities for you to make money. But watch out! You could be looking at a sector that’s rising on mainly speculative buying brought on by takeover rumors. If you’re not sure, it means you’re already too late to make money, but not too late to lose it.

If speculative investing is your thing, I’ll show you exactly how to play this market and come out a winner tomorrow. But there’s a safer way to make money from the buyout trend - one that’s based on sound fundamental trading principles.

Here’s how to do it:

With the help of your favorite search engine, find medium- to large-sized companies that are well managed, come with double-digit growth prospects… and have just bought another company. These companies have everything going for them, except for that one "thing." Because companies usually overpay for such acquisitions, investors like to drive their stock prices down. Let the prices slide 10 to 15 percent, and then swoop in and buy.

You’ve just bought at a substantial discount. And if the management of these companies is as good as you think it is, they’ll also make their buyouts work - giving their companies an additional growth boost.

Buying sound companies that other investors are running away from isn’t easy - but neither is finding fundamentally strong companies at substantial discounts. This is one relatively painless way to do it.

This article appears courtesy of Early To Rise, the Internet’s most popular health, wealth, and success e-zine. For a complimentary subscription, visit http://www.earlytorise.com.