Saturday, January 27, 2007

Time for a pause

A recent CNN headline, titled 2007 - Year of the mega-buyout, shows how expectations of a buyout boom are now widespread. Along with countless other similar pieces over the last 3 weeks, we have now reached a point where a number of takeover targets are going for inflated prices making it very hard to pick bargains.

I will be going slow on accumulating stocks of such targets for a while, in the hope of building a pile to invest if and when there is a pullback. As usual, I will not be selling anything I am holding right now, just not buying at premium prices.

There are still occasional opportunities created by bad earnings news and similar disappointments, but even they have started to have little impact of late.

I will make sure that I make another post when I reverse my view.


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