Sean SESHADRI

Mergers and Acquisitions give market boost

Mergers and Acquisitions give market boost

Investors woke up this morning to good news of M&A activity. According to Sean Seshadri, this is considered a bullish sign for the economy because it means company are willing to buy into future growth.

Global Packaging Company Reynolds Group Holdings Ltd will buy Pactiv Corp, which are maker of Hefty Trash Bags for about $4.4 billion, or 33.25/share, in cash including debt which, the deal value is approximately 6 billion.

Mergers and Acquisitions give market boost

Pactiv Shares rose over 5% on the news. Lux Investments believes that main story today was Potash which rejected a takeover bid from BHP Hilton worth 38.49 billion, or $130/share.

By rejecting this offer potash Sean Seshadri believes that there is future growth in their company and as a results shares moved sharply higher before the market opened.

Potash shares closed up 27.66% or 31.02, but the 110 call moved up almost a 1000%.

Mergers and Acquisitions give market boost

This week being option expiration week there are lot of players making short term. Remember on can play bullish stock with a credit spread by selling a strike OTM and buy an option in ITM for protection.

Sean Seshadri states that you never want to trade with excessive risk as one needs a defined plan for a trade with an exit, and entry.

Being disciplined of when to take profits and take losses will keep you safe and for long term success.

Mergers and Acquisitions give market boost

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