Investment Strategy Today
Eight stocks move into Buy Consideration while total market is within 6 points of 100% Fair Value.
Merger: Lumentum Holdings Makes A Nice Deal Acquiring Oclaro, Inc.
Lumentum Holdings [LITE] has agreed to acquire Oclaro Inc [OCLR] for $5.60/share plus 0.0636 shares of each Oclaro share. This makes the deal worth approximately $8.46/share to Oclaro shareholders. . Fair value for Oclaro is $7.00/share and Lumentum is at $45.00/share. The offer represents a 20.8% premium. Placing the arrangement on the high side of the fair value trading range and very acceptable
Investment Strategy Today
The trade balance has been negative since 1992 so this is not a recent occurrence. Not all stocks are impacted by changes in trade economics the same way. It is not a universally good vs. bad influencer. For more information on how individual stocks are impacted visit the website under Economics > Trade.
Merger: CommScope Over Pays for ARRIS
CommScope has agreed to acquire ARRIS International [ARRS] for $31.75/share. Fair value for the stock is $24.00/share. The offer represents a 32% premium placing the transaction price at overvalue.
Economic: USA Trade Balance & USD Influence
The trade balance has been negative since 1992 so this is not a recent occurrence. Not all stocks are impacted by changes in trade economics the same way. It is not a universally good vs. bad influencer. For more information on how individual stocks are impacted please see the directory that follows this report or visit the website www.Investment-Strategy.net under Economics.