Too cautious ?

Am i becoming too cautious ? I am asking this because i have another near miss and a costly one!
Mylan today announced that it is acquiring King Pharma for around $16.5/share, a whopping 60% premium over its Friday close of 10.3. I had added King (KG) to my list 2 weeks ago - the stock, which had a good newsletter following for a while, took a hit after accounting woes and sudden exec resignations. I took it off my earlier buy list since i thought there was more room to fall. I added it again last week (and you can still see it in my buy list for next week's lot) assuming that Bristol Myers (BMY) could be a likely suitor. Oh well!
I do own a few Mylan (MYL), but that is more a growth story than a takeover pick.
This could set off a consolidation wave in the generic drugs sector. This is one sector where i am buying every major player, but only on a pullback following bad news. Apart from Mylan i own a few of Andrx (ADRX)). In addition, i added Watson Pharma (WPI) to my buy list last week after the stock got hid badly - it is a likely takeover candidate.