Dealmaking Returns To Street
Even in this anemic market, it appears the urge to merge is alive and well.
And the deals are nothing to sneeze at. In fact the latest could shake up Silicon Valley and the entire corporate computing market. According to many published reports, IBM is in talks to buy Sun Microsystems for at least $6.5 billion in cash.
The negotiations are still in their early stages but if the deal goes down – it would be IBM's largest-ever acquisition, and would lead to the creation of a massive technology firm offering both computer hardware, software and services.
And the deal mentioned above isn’t a one hit wonder. Earlier in the year Pfizer announced plans to acquire Wyeth while Roche snapped up Genentech .
That’s right, despite a slow economy and tight credit it appears M&A deals heating up!
And Pete Najarian thinks 3 sectors are ripe for the picking. “There’s a lot more coming in M&A,” says the Pit Boss. He’s keeping an eye on energy, technology and financials.
"Exxon Mobil is sitting $40 billion in cash, he says, and refiners and getting awfully cheap. And Apple is sitting on money too; $30 billion. You've got to wonder about this company as well as Dell and Intel."
Also, Najarian says United Technologies stopped their repurchase program because they want the cash to make acquistions. "Even the industrial space has areas where people are looking to buy."
But if you don’t want to play stock picker, you can also play the M&A uptick with Greenhill or Lazard , counsels Guy Adami. They make money from brokering the deals.
Goldman, Morgan and JP Morgan also making money off M&A deals, reminds Joe Terranova.
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Trader disclosure: On Mar. 18th, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour Owns (AAPL), (BAC), (EEM), (FXI), (GG); Seymour Is Short (X); Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Terranova Owns (AMZN), (BP), (KCE), (JPM), (X), (POT), (WYNN), (XBI), (HESS), (INTC), (BRCM), (DELL), (JOYG), (FXC), (XOM); Terranova Owns (COP) Calls; Terranova Owns (DIS) & (DIS) Calls; Terranova Owns (AMGN) & (AMGN) Puts; Terranova Owns MACI Oil Futures; Terranova Owns (IBM) Spread; Najarian Owns (C) Call Spread; Najarian Owns (FCX) Call Spread; Najarian Owns (GDX); Najarian Owns (GD) Call Spread; Najarian Owns (GLD) Put Spread; Najarian Owns (JPM) & (JPM) Calls; Najarian Owns (MS) & (MS) Calls; Najarian Owns (MSFT) & (MSFT) Calls; Najarian Owns (ORCL) Call Spread; Najarian Owns (TGT) Call Spread; Najarian Owns (X) Call Spread; Najarian Owns (WFC) & (WFC) Puts; Najarian Owns (XHB) Call Spread; Najarian Owns (WDC) Call Spread; Najarian Owns (SMH) Calls