The drug industry has been experiencing intense activity on the merger front over the past year. The two deals that have grabbed the most headlines, due to their sheer size, have been Pfizer’s (PFE) acquisition of Wyeth (WYE), valued at $68 billion, and Merck’s (MRK) purchase of Schering-Plough (SGP), worth $41 billion. Meanwhile, a host of smaller mergers, including Teva Pharmaceutical’s (TEVA) $7.5 billion buyout of Barr Pharmaceuticals (BRL), and licensing agreements, such as Valeant Pharmaceuticals’ (VRX) pact with GlaxoSmithKline (GSK), have been completed or are in the works.
There have been many noteworthy developments in the restaurant space recently. Some of these will likely have a material impact on the companies in the sector and the markets they serve.
Recent News and Analysis
- SodaStream Int'l - Whispers of A Sale To Starbucks Spark A Rally
- Federal-Mogul Hldgs. - Reports First-Quarter Financials; Shares Move Lower
- Cree, Inc. - March-Period Results Disappoint; Shares Fall
- VMware, Inc. - Possible Overreaction To Tiny Earnings Miss May Provide A Buying Opportunity
- Illumina Inc. - Shares Advance On Better-Than-Expected First-Quarter Results
- Elizabeth Arden - Speculation Of Takeover Bid Sends Stock Trading Higher
- Unisys Corp. - Surprising March-Period Loss Sends Stock Sharply Lower
- AT&T Inc. - Shares Slide Despite Better-Than-Expected First-Quarter Financials
This article touches on the importance of having an understanding of balance sheet considerations when investing, particularly during tougher economic times. We describe Value Line’s Financial Strength ratings system, and list the main factors that determine individual categories. We also note some of the different capital structures among industries.
Retailers differ from industrial companies in that they do not produce tangible products. They purchase merchandise from manufacturers in large quantities for resale to consumers at a profit. The domestic Retail Store industry is mature and highly competitive. These companies must provide desirable products, while managing inventory and controlling costs, to succeed. From an investment perspective, the sector generally tracks the broader stock market, on average. Some retail stocks can be volatile, though, making them best suited for short-term accounts. However, there are a few well-established companies suitable for the conservative investors.