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Eric Jackson:

What sectors do you expect the most activist activity in 2009?

also, for individual investors who--unlike institutions--dont always have
incoming money, do you consider it wise for individual investors to get in
**right away**, or wait for the Ichans of the world to first shake things up and
get things moving?

Or should they just not get involved at all (in your opinion of course).

thanks

Asked by Ryan4891 1 month ago - 3 answers - 230 views
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sorry. misread the question.

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the most active sector this year will be the financials, as the government
regulates big banks out of existance. ALL the shareholders' equity in those
banks will go to the government. Stealth transfer of wealth from the private
sector to the public sector. So, the individual investor/trader should get out
and stay out unless thay want to be wiped out.

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Hi Ryan:

Activists have traditionally been attracted to all industries, as long as
they're depressed. In today's environment, everything's down.

I'm surprised that activists haven't been more active in the
financials/retail/restaurants. I think they've been concerned that there will
be further drops and are waiting to pounce. You should also be on the look-out
for action in tech (including software), industrial and insurance.

If it's a smaller cap stock, you might want to follow behind an activist quicker
than a larger cap. Smaller caps tend to be more open to the suggestions of
activists and the market expects that. In the case of Motorola and Yahoo, the
bigger companies need a lot more work, so you can't count on the Icahns of the
world to wave a magic wand.

You always need to do your own due diligence of course.

Good luck!

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