Microsoft's offer is a great one for Yahoo shareholders. And it creates a buying opportunity for Microsoft stock, which could jump by a third.

If the electricity market tightens as expected, Dynegy could see its stock, now 7, jump to 12 or more, 80% of the estimated replacement value of its power-generation assets.

Blackstone bulls think the stock is cheap at 18, or 12 times estimated earnings. But the shares could fall to 15 if several deals sour and cost Blackstone its incentive fees.

Swiss Re has been boosted by Warren Buffett's 3% stake. But a weak insurance-pricing outlook and the possibility of further write-downs bode poorly for the stock over the next year.

The shares, which have fallen sharply in the past three months, look poised to climb by 40% or more.

Takeda's shares are likely to remain on a treadmill until the uncertainties about its drug pipeline are resolved. Investors should avoid the stock until the picture clears.

Using a crude analysis and without suggesting it will be acquired any time soon the risk-reward bargain looks favorable. Relying on what Wachovia (WB) paid last year for A.G. Edwards, based on client-asset levels, suggests Raymond James would be worth close to $4 billion, without adding a premium for the asset-management unit and the bank. Of course, last May when Wachovia bought Edwards was a different financial moment. Still, Raymond James is well positioned, and the Edwards deal enhanced its scarcity value. Even better, top managers have been buying shares. As Barron's Online noted last week, three senior execs collectively bought $3 million worth of shares between $25.79 and $27.18. Investors looking to rebuild exposure to quality financial stocks could do much worse than take their hint.

Check Point Software (CHKP) was among those to beat estimates recently, but its pop was short-lived. Worries about a spending freeze have pared its market value by 20% since October. Yet Check Point remains a sound defensive bet. Computer security is no less a priority for most businesses even in tough economic times. With its conservative forecast, management had chosen to play it safe and has factored softer demand into its rather beatable guidance. At about 21, shares trade at 11 times forward earnings, and its debt-free balance sheet and suite of firewall products make Check Point a viable acquisition target should buying return to favor again.