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Originally Posted by reckless
Over the years I've recommended individual stocks since that's my main game.
I have recommended on here in prior posts two companies that I said were very undervalued and great long-term holdings, Fidelity National Finance and Stewart Title Insurance. Both are in the title insurance and real estate processing business. (A wonderfully great and 'safe' business to be in, with near zero risk which produce piles of cash and earnings compounding at great rates.)
So, who wants to make about 20 per cent return in about 4-5 weeks or less??
ASAP buy Stewart Title, symbol STC.
It sells for $41.50 or so as I type this and Fidelity (FNF) has a take-over price of about $50, a deal set to close in less than a month. There's cash and stock involved so some may not want to play along being short-term oriented and options traders.
You should because FNF is getting STC at a discount to intrinsic value and is one of the 1-2 largest title insurance players in the country.
Good luck.
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The top 4 title insurance players hold about 85% share, which probably explains why it's such an attractive biz. If FNF and STC merge, I believe their share would total around 45% That may be giving the FTC pause. I assume the FTC second review is focused on regional market share concentration issues (if the number is 45% overall, I suspect there are markets well north of that). Regardless, even with divestitures, the combined entities would represent an attractive biz, imo.
Your merger stats remind me of a Bloomberg article from last year. In rough terms, there were 7,500 public companies (ex OTC/pink sheets) in 1995. That number now stands around 4,000. Tons of M&A and fewer IPOs vs. pre-2000.
