Using signaling theory, the conclusion has to be that managers of acquiring companies are using a higher proportion of cash relative to the last MA cycle, as they believe that there is greater upside relative to downside risk in acquisitions.
More Quotes from Clive McDonnell:
I feel the rally has stalled amid disappointment about progress in the war, but Bush is right, the allies will be victorious, and that will provide more fuel for the market to advance from a purely sentiment point of view rather than on fundamentals.Clive McDonnell
The last time (that) happened it was a contributing factor to the market crash of 1987. While we are not forecasting a similar event in this cycle it does provide food for thought for investors over Christmas.
Clive McDonnell
Investors must be wondering whether the company will suffer from the winner's curse.
Clive McDonnell
That, in combination with average revenue per user (ARPU) numbers coming from Vodafone on April 25 is getting people worried.
Clive McDonnell
With the European Central Bank joining the global trend for tighter monetary policy, the backdrop for equity markets is becoming more challenging.
Clive McDonnell
Readers Who Like This Quotation Also Like:
Do not reveal what you have thought upon doing, but by wise council keep it secret being determined to carry it into execution.Chanakya
No amount of time will weaken our allegiance to avenging those lost in the horrible attacks. America has a sharp memory, a firm resolve, and a commitment to her own.
John Doolittle
Art has to move you and design does not, unless it's a good design for a bus.
David Hockney