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Defining periods of irrational exuberance can be difficult. However, one method to do so might simply be to look at the headlines. Here are this morning's:- Crescent Real Estate Equities to be purchased by Morgan Stanley (NYSE: MS) Real Estate
- Payless ShoeSource (NYSE: PSS) to acquire Stride Rite (NYSE: SRR)
- Dow Jones & Co. (NYSE: DJ) controlling shareholders, the Bancroft family, meeting to review News Corp (NYSE: NWS) offer
- Sallie Mae making management changes for its take-private transaction
- Alcan Inc. (NYSE: AL) rejects Alcoa Inc.'s (NYSE: AA) $27 billion offer as inadequate
- MGM Mirage (NYSE: MGM) approach by Kirk Kerkorian's Tracinda Corp requires delicate strategy.
This buyout boom has been fueled by a number of factors. The most important factor has been undervalued stocks, which, in many cases, still remains. In the post tech-telecom bubble of the 1990s, investors went into a cocoon while U.S. company management continued to grow earnings and increase returns on investment.
What will end this buyout boom? My bet is a massive bull market which pushes valuations off the radar screen of private equity.
Retailers can't wait for Black Friday, open Thursday
Tiffany's serves up solid quarterly earnings
Cramer on BloggingStocks: This bullish retail story looks like a good fit 
Reader Comments (Page 1 of 1)
5-23-2007 @ 11:33AM
The_Village_Idiot said...
The $6b purchase of AQNT sounds a bit bubble-like to me. It's beginning to feel like 1999 again (and we all know how that party ended). The individual investor needs to tread cautiously here as this buyout freenzy continues.