Barron's Options point to Takeover Targets
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Date updated:06-09-2007

From Barron's 6-11-07:

"Talking smack and drinking beer. They're good ways to waste time, and Wall Street thinks it may have discovered how to make them profitable. Last week, Pershing Square Capital Management, which buys big stock interests in moribund companies and browbeats management into making decisions that increase the stock price, let leak that it was raising a $2 billion war chest to buy a controlling interest in an unidentified company with a market capitalization of $30 billion to $40 billion."

symbol name last price % change open
  • +
  • BUD
    Anh Bsch Inb Sa A
  • $48.52
  • +3.15%
  • $47.67

From Barron's 6-11-07: "One way for investors to get in on the action: Sell overpriced one- and three-month call options on Anheuser-Busc to speculate on an anticipated shakedown from some yakety-yak hedge fund. The implied volatility of Budweiser's options that expire in one month, and three months shot to one year-highs and are now among the most expensive in the entire consumer-staple sector."

People owning BUD also tend to own: AAADPAVPBACBRK-BCSCOCX

TheStreet.com Rating: No Rating What is this?

  • +
  • KR
    Kroger Co
  • $21.37
  • +1.14%
  • $21.28

From Barron's 6-11-07: "The other overpriced options are KR, KFT and SWT. All are takeover targets because they have what leveraged buyout funds need: strong, predictable cash flows, and straightforward balance sheets that can be leveraged."

People owning KR also tend to own: HITKLCICACLECSCOFITBGE

TheStreet.com Rating: C What is this?

  • +
  • KFT
    Kraft Foods Inc
  • $28.90
  • +1.90%
  • $28.48

No Analysis added

People owning KFT also tend to own: AAPLBACBBYBGTCSCOCTSHDEO

TheStreet.com Rating: B- What is this?

  • +
  • SWY
    Safeway Stores In
  • $22.23
  • +1.14%
  • $22.09

No Analysis added

People owning SWY also tend to own: ADMAIZALLCBCNICOPCSC

TheStreet.com Rating: C+ What is this?

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