The new boring: the economy muddles along, with no growth. The balance sheet of corporate America is in good shape. Corporations are starting to say, we have a ton of cash, let's go out and buy someone and cut expenses.
1) Genzyme , a $55 stock, rejects a $69 offer from Sanofi for all cash!
2) Potash , $105 stock, rejects a $130 cash offer from BHP Billiton and continues to trade at $140!
3) 3Par , a $10 stock, ignites a bidding war between Dell and Hewlett and still may not have settled at HPQ's bid of $30!
4) The McAfee deal with Intel is all cash!
5) HPQ, with $14 billion in cash, announces a $10 billion stock buyback.
Meanwhile, investors anticipating a prolonged period of low inflation and low growth are reaching for yield — driving up prices of higher-yielding stocks. That's why the only sectors in the S&P 500 that are up this month are the high-dividend paying sectors: telecom (up 1.7 percent) and utilities (up 1 percent).
High dividend payers in the S&P 500:
Progress Energy 5.8%
Integrys Energy 5.6%
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