By Zach Scheidt
This post Wake Up A Millionaire… Over And Over Again… appeared first on Daily Reckoning.
“Get in the car kids, we’re celebrating!”
I had to laugh at the different responses from my kids. The little ones jumped out of bed and flew down the stairs. They didn’t know what was up, but they were pretty sure it was going to include sugar.
The teens’ response was a bit more subdued.
“What the heck are we celebrating?” mumbled my 17-year-old, wiping sleep out of her eyes.
“Can I at least get a flat white mocha extra hot with two additional shots?” asked my 14-year-old. (How does she rattle that off half asleep?)
“Whatever you want!” I smiled. “This one’s on me… or rather on the takeover deal that just happened!”
She just looked at me like I had two heads.
“Hop in the car; I’ll explain on the way,” I said. And we rolled out for a special breakfast to celebrate the latest win in the market.
Waking Up to a Celebration
Every so often, I wake up to some great news in the market. News that means my brokerage account just jumped to a new level, adding overnight profits that leave most traditional investors in the dust.
What causes these overnight gains?
They’re a direct result of a new takeover deal that has been announced, driving the stock price of one specific stock sharply higher.
If you’re lucky enough to own that stock, you’ll walk away with a huge profit.
That’s why I’ve spent years developing a system to track exactly which stocks will be selected to jump sharply higher as a takeover deal gets inked.
Here’s how it works.
Large companies are always looking for ways to grow their profits, beat their competition, acquire new technology and dominate in their respective industries. And often the best way to accomplish these goals is to buy out another company!
The other company may be a competitor. Or it might supply a specific technology or component needed in the manufacturing process. Sometimes it’s a leader in an up-and-coming market.
Whatever the reason, a takeover deal is often the best way for a company to remain relevant, competitive, and profitable in this ever changing market.
When a large company decides to buy out a smaller firm, they have to convince the existing owners to sell. And what better way to convince someone than with a much higher price?
That’s exactly what led to our celebration earlier this year. One of the stocks that I owned was bought out through a takeover deal. And when I woke up, the stock was sharply higher.
This wasn’t just some one-off event, either. Takeover announcements likes these happen regularly — generating large profits in a short period of time (typically overnight). And I think we’re heading into a period when we’ll see much bigger deals happening much more frequently!
Let me explain…
2018 Is the Year of the Takeover — And We’re Running Out of Time!
Remember the tax bill that passed late last year?
It not only lowered the tax rate for corporations… but it also created bigger cash balances for the biggest companies on Wall Street. That’s because there was a special provision that allowed for roughly $2 trillion in cash stored in overseas bank accounts to come back to the U.S.
Much of that cash is now sitting in companies’ bank accounts, waiting to be spent. And management teams have decided the best way to use that money is to buy out competitors!
Think about AT&T’s $85 billion dollar deal to take over Time Warner, or Cigna’s $67 billion deal to acquire Express Scripts. Those are just two of the hundreds of takeover deals to be announced this year.
Looking ahead to the last three and a half months of the year, you’re going to see a lot more of these deals making waves. Because with so much opportunity right now, and with the uncertain political landscape following the November elections, companies have every incentive to lock in takeover deals NOW!
So I’ve been working hard to pinpoint which companies are perfect candidates to be taken over at a much higher price. And I’m sharing my research in my Takeover Alert service. It focuses exclusively on stocks that are ready to post big overnight gains as new deals are announced.
If you want to make sure you’re capturing those profits and celebrating each morning that these deals are announced, you should check out the Takeover Alert right away!
But make sure you get started right away. Because the clock is ticking and the next deal could be announced as soon as tomorrow morning!
You can see all of the details on my M.A.R.K.E.D. system for identifying these takeover deals right here.
Here’s to growing and protecting your wealth!
Zach Scheidt
Editor, The Daily Edge
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