44 stocks on takeover target radar: Morgan Stanley
March 24, 2014, 3:12 PM
- Shutterstock
With U.S. corporations sitting on more than $1 trillion in cash and many companies facing organic growth challenges, investors are on the lookout for the next big multi-billion dollar acquisition.
About 44 multi-billion dollar cap companies have a high likelihood of receiving at least one tender offer over the next 12 months, according to a screen by Morgan Stanley.
The firm used several factors in the screen:
- Dividend yield: Lower yields imply higher offer probabilities.
- Price-to-book ratio: Cheaper stocks have a higher offer likelihood.
- Debt-to-asset ratio: Higher leverage means an offer is more likely.
- Market cap rank: Smaller caps have higher offer probabilities, mega-caps, less likely.
- Sector: Healthcare companies are more attractive targets than industrials.
- Liquidity: High trading volume relative to market cap (market caps over $2 billion with average daily trading volumes of $1.6 billion over the past 90 days). Morgan Stanley said the inclusion of this factor boosted the presence of technology stocks on the list. Indeed, recent reports have forecast that 2014 will be a big year for tech acquisitions.
Here is the screen by sector:
Energy
Newfield Exploration Co. NFX +0.83%, $4.1 billion cap
Sandridge Energy Inc. SD +0.96%, $3.1 billion cap
Tidewater Inc. TDW -1.86%, $2.3 billion cap
Newfield Exploration Co. NFX +0.83%, $4.1 billion cap
Sandridge Energy Inc. SD +0.96%, $3.1 billion cap
Tidewater Inc. TDW -1.86%, $2.3 billion cap
Materials
Cliffs Natural Resources Inc. CLF , $3 billion cap
Axiall Corp. AXLL , $3.1 billion cap
Domtar Corp. UFS -0.01%, $3.4 billion cap
Royal Gold Inc. RGLD -1.47%, $4.2 billion cap
Cliffs Natural Resources Inc. CLF , $3 billion cap
Axiall Corp. AXLL , $3.1 billion cap
Domtar Corp. UFS -0.01%, $3.4 billion cap
Royal Gold Inc. RGLD -1.47%, $4.2 billion cap
Consumer Discretionary
Sinclair Broadcast Group Inc. SBGI -0.34%, $2.6 billion cap
Wendy’s Co. WEN +1.00%, $3.3 billion cap
Tempur Sealy International Inc. TPX -0.45%, $3 billion cap
Brinker International Inc. EAT , $3.5 billion cap
Bally Technologies Inc. BYI , $2.5 billion cap
DreamWorks Animation Inc. DWA , $2.2 billion cap
J.C. Penney Co. JCP +0.35%, $2.6 billion cap
American Eagle Outfitters Inc. AEO +0.70%, $2.5 billion cap
Sinclair Broadcast Group Inc. SBGI -0.34%, $2.6 billion cap
Wendy’s Co. WEN +1.00%, $3.3 billion cap
Tempur Sealy International Inc. TPX -0.45%, $3 billion cap
Brinker International Inc. EAT , $3.5 billion cap
Bally Technologies Inc. BYI , $2.5 billion cap
DreamWorks Animation Inc. DWA , $2.2 billion cap
J.C. Penney Co. JCP +0.35%, $2.6 billion cap
American Eagle Outfitters Inc. AEO +0.70%, $2.5 billion cap
Consumer Staples
Ingredion Inc. INGR -0.23%, $5 billion cap
Hain Celestial Group Inc. HAIN +0.27%, $4.6 billion cap
Hillshire Brands Co. HSH +0.00%, $4.6 billion cap
Whitewave Food Co. WWAV -3.72%, $5 billion cap
Ingredion Inc. INGR -0.23%, $5 billion cap
Hain Celestial Group Inc. HAIN +0.27%, $4.6 billion cap
Hillshire Brands Co. HSH +0.00%, $4.6 billion cap
Whitewave Food Co. WWAV -3.72%, $5 billion cap
Health Care
Celgene Corp. CELG +0.76%, $57.8 billion cap
Express Scripts Holding Co. ESRX -0.02%, $29.9 billion cap
WellPoint Inc. WLP +0.23%, $28.5 billion cap
Regeneron Pharmaceuticals Inc. REGN +1.48%, $31 billion cap
Alexion Pharmaceuticals Inc. ALXN +2.14%, $29.9 billion cap
Aetna Inc. AET +0.53%, $27 billion cap
Cigna Corp. CI , $21.9 billion cap
Becton Dickinson & Co. BDX , $21.9 billion cap
Cerner Corp. CERN +0.70%, $19.8 billion cap
Celgene Corp. CELG +0.76%, $57.8 billion cap
Express Scripts Holding Co. ESRX -0.02%, $29.9 billion cap
WellPoint Inc. WLP +0.23%, $28.5 billion cap
Regeneron Pharmaceuticals Inc. REGN +1.48%, $31 billion cap
Alexion Pharmaceuticals Inc. ALXN +2.14%, $29.9 billion cap
Aetna Inc. AET +0.53%, $27 billion cap
Cigna Corp. CI , $21.9 billion cap
Becton Dickinson & Co. BDX , $21.9 billion cap
Cerner Corp. CERN +0.70%, $19.8 billion cap
Financials
Nationstar Mortgage Holdings Inc. NSM -1.93%, $2.7 billion cap
Nationstar Mortgage Holdings Inc. NSM -1.93%, $2.7 billion cap
Tech
Brocade Communications Systems Inc. BRCD -0.05%, $4.4 billion cap
On Semiconductor Corp. ONNN -0.75%, $4.1 billion cap
Tibco Software Inc. TIBX +0.61%, $3.4 billion cap
SunPower Corp. SPWR +1.59%, $3.9 billion cap
Ingram Micro Inc. IM -0.04%, $4.5 billion cap
Jabil Circuit Inc. JBL +0.08%, $3.7 billion cap
SunEdison Inc. SUNE -1.39%, $5.3 billion cap
Teradyne Inc. TER -0.02%, $3.9 billion cap
Arris Group Inc. ARRS +1.46%, $4 billion cap
NeuStar Inc. NSR , $2.1 billion cap
Brocade Communications Systems Inc. BRCD -0.05%, $4.4 billion cap
On Semiconductor Corp. ONNN -0.75%, $4.1 billion cap
Tibco Software Inc. TIBX +0.61%, $3.4 billion cap
SunPower Corp. SPWR +1.59%, $3.9 billion cap
Ingram Micro Inc. IM -0.04%, $4.5 billion cap
Jabil Circuit Inc. JBL +0.08%, $3.7 billion cap
SunEdison Inc. SUNE -1.39%, $5.3 billion cap
Teradyne Inc. TER -0.02%, $3.9 billion cap
Arris Group Inc. ARRS +1.46%, $4 billion cap
NeuStar Inc. NSR , $2.1 billion cap
Telecom
Crown Castle International Corp. CCI , $24.7 billion cap
SBA Communications Corp. SBAC -0.94%, $11.7 billion cap
Level 3 Communications Inc. LVLT -0.73%, $9 billion cap
Windstream Holdings Inc. WIN -0.02%, $5 billion cap
Frontier Communications Corp. FTR , $5.4 billion cap
Crown Castle International Corp. CCI , $24.7 billion cap
SBA Communications Corp. SBAC -0.94%, $11.7 billion cap
Level 3 Communications Inc. LVLT -0.73%, $9 billion cap
Windstream Holdings Inc. WIN -0.02%, $5 billion cap
Frontier Communications Corp. FTR , $5.4 billion cap
–Wallace Witkowski
Follow The Tell on Twitter @thetellblog.
Follow Witkowski @wmwitkowski.
No comments:
Post a Comment