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.
Asset Allocation 1st Quarter 2019
Investment Strategy Network has added another dimension to the asset allocation process. Traditionally, increasing stability or advancing opportunity (risk/return) has been accomplished through adjusting allocations amongst cash, bonds and stocks. Bonds are increased to improve stability, reduce risk and stocks are increased when opportunities are sought along with a willingness to accept higher fluctuations in value levels (volatility). Individual stock selection can also be adjusted along with the asset allocation to enhance stability or improve opportunity. By using the two as an integrated combination rather than individually, greater alternatives are available and more opportunities are generated.