Big money is on the move, and it could make you enormous amounts of cash.
What we call activists today were called corporate raiders when I first started.
They would snap up a large chunk of a stock on a company they thought was undervalued and demand management to sell it – either to them or some other willing junk bond-fueled LmmBO artists.
A lot of folks got what I like to call dirty, stinking, filthy rich as raiders, and those of us who figured out to reverse engineer their targets also did pretty well for ourselves.
Corporate raiding still exists. It just has better PR agents these days.
Today the practice is known as corporate activism.
It still puts huge profits in the pockets of those who hide behind a mask of “shareholder value” and “corporate governance” to force significant changes – or even the outright sale of a company.
Activists may not flaunt the image of the pirate any more (as Tom Hudson and Pirate Capital once did), but the main goal is to make lots of money for themselves and their investors.
The markets open slightly down today, despite what Keith is giving “two thumbs up” for – Q2 earnings’ profits so far have been up 6% rather than the forecasted drop of 2% since last year. Amazon.com Inc. (NasdaqGS:AMZN), Microsoft Corp. (NasdaqGS:MSFT), and Facebook Inc. (NasdaqGS:FB) all report this week, and here’s what you could be expecting from each one. Plus, where Tesla Inc. (NasdaqGS:TSLA) ought to be trading and a personal anecdote about why the U.S. race to 5G is more important than ever. Click here to watch.