Recently, the market has been flooded with successful ipo’s, mergers and junk bond sales. Take a look at this junk bond etf, [[JNK]] , on fucking fire. Year to date, the market has absorbed 100’s of billions of new low quality paper, effectively bailing out everyone. If you take a step back and think about what has transpired, over the past 6 months, it’s truly amazing.
The architects of this economy, The Fed, won. They defeated all of the cancerous doomsday circle jerkers and gave this stupid country a second chance to get it right. Naturally, we will fuck it up, just like the tv, automobile and refrigerator; but at least we have some time to get high and fat, before we are sent to Chinese prison factories.
With rates at zero, investors are buying up toxic assets. That’s right. There is demand everywhere. Do not be surprised, sometime soon, to hear of “mark-ups” reported by our dumbest banks.
With regards to m&a:
Inside of two weeks, two IT companies were bought out, first Perot Systems Corporation [[PER]] , now Affiliated Computer Services, Inc. [[ACS]] . If I had to take a wild stab, I’d say Computer Sciences Corporation [[CSC]] , Syntel, Inc. [[SYNT]] , Acxiom Corporation [[ACXM]] could be on the block. For a dice roll, take a looksy at Unisys Corporation [[UIS]] .
As an aside, with Omniture, Inc. [[OMTR]] getting bought out, ValueClick, Inc. [[VCLK]] , Marchex, Inc. [[MCHX]] , IAC/InterActiveCorp [[IACI]] or [[MWW]] are “potential” buyouts. Like I said earlier, the “net” is back, with great veracity.
Bottom line: Wall Street is back and there is nothing you or your stupid friends can do about, as long as money is cheap and cocaine is available. As the market rises, companies will get aggressive and buy each other out, like cannibals without food. All in all, barring a normal correction in the indices, I can’t think of a reason to get short for the remainder of 2009.
Buy the junk; position for more deals. Ahhh, it’s like 2006 all over again.
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