Acquisition Rumors Boost Stocks

by Houghton and Atkeson  
Email This   Print Page  Tweet This Tweet This

While the stock market falls, acquisition speculation heats up. Stock values may have finally fallen far enough to become bargains for companies looking to expand through acquisition.

Today, it appears option investors are buying Hershey Co. (HSY) March 35 (HSYCG) and April 35 Calls (HSYDG) more than 20,000 times. With the stock at its 52-week low, it may be cheap enough for Nestle to acquire the company.

There has been speculation regarding this transaction in the past but we now have investors buying options with two weeks left before expiration.

Lexmark International Group Inc. (LXK) may also become an acquisition target in the near future. We are seeing unusual buying activity in the LXK March 17.50 (LXKCW) and April 17.50 Calls (LXKDW). Lexmark is down more than 42% year-to-date and is back to price levels last seen in 1997.


The Stock Market Stinks! But these hedge fund pros are doubling their money twice a month. Learn their secrets and profit even in today's stock market. And here's the best part: You can learn those secrets free!

Read your free report here.

More By This Expert

What's Ahead for the Markets

Looking into June, the market should begin refocusing on upcoming earnings reports for evidence the economy is gaining momentum.

Watching the Treasury's Actions

In the short-term, the government's bond auction is likely to be a key driver of stocks.

Treasury Auction Boosts Market

The Treasury's auction of two-year notes brought an upside surprise which should alleviate fears of a lack of demand for U.S. paper.

Credit Markets Point to Upturn

The credit market, a reliable indicator of equity direction, suggests we will break out of the SPX's trading range to the upside.

Market Cooling Down

The market seems to be saying that a 30% move up from the lows is ahead of the real economy and the market needs to allow the economy to catch up.

Options Broker Center

Compare Brokers