gopal.delaxo

By now you might be thinking: This is about the stock market,
yet the stock market itself will not be a factor in any of the superstock
takeover situations we discussed. Every one of these superstocks
generated a profit for reasons totally unrelated to the trend of
the general stock market.
Which is precisely the point. When you’re dealing with superstocks,
pegging your stock selections to specific events or “catalysts”
related to a particular company that are likely to force the stock price
higher, for the most part you’re removing the behavior of the general
stock market from the equation.
When you begin to think in terms of the new paradigm, you’ll
find yourself zeroing in on news items that relate to the stocks you’re
holding or to other stocks that could become potential superstocks.
You’ll find yourself paying attention to “micro” news items rather
than “macro” news items. You’ll become less interested in grandiose
generalizations concerning the big picture and more interested in specific
news items that will impact individual stocks you’re following.
You will even notice when an outside beneficial owner receives
a hostile takeover bid, because one way the beneficial owner can
ensure protection from such a bid would be to turn around and make
an acquisition itself—and therefore, what company would be a more
logical takeover candidate than a company that is already partially
owned by the outside beneficial owner?
On the other hand, you’ll pay less attention to durable goods
orders, the consumer price index, the trade deficit, and whether Alan
Greenspan might have gotten up on the wrong side of the bed this
morning before he presided over the Federal Reserve’s Open Market
Committee meeting. You would be more interested in the fact that
WMS Industries has announced that it will spin off its three Puerto
Rico hotel/casinos as a separately trading company because you will
have noted a takeover wave in the hotel/casino industry. Therefore, while the TV talking heads are wringing their hands
over what Greenspan may or may not do, you’ll be more interested in
the possibility that the WMS spinoff might become a takeover target
once the hotel/casinos are trading separately as a “pure play.” (It did.)
You will also begin to realize that if Rexel S.A. plans to make a
takeover bid for Rexel Inc.it will make the bid
whether or not housing starts were up last month, and it won’t matter
to Rexel S.A. if Apple Computer missed its earnings estimates by
a penny. And you will know that Rexel S.A. is not going to scratch its
takeover plans because some market strategist who has been bullish
before now believes we may be headed for a 10 percent correction