Make Money With Take Over Targets

Now what I am about to talk about is not easy, per what the article says you almost need insider information (which is illegal and you should never seek - you will be in a lot of trouble is caught) to get ahead.

However, having said that if you are very smart and keep your finger on the pulse you can make a very good return from buying potential takeover stocks. Go back and look at BHP and RIO before the GFC when these two companies were in the process of a takeover, the stocks went nuts!

Here is the start of an article from the financial review smart investor with a link to the whole article that sums it up perfectly;

"Share investing is usually a get-rich-slow proposition. Equity holders are rewarded over the long term through dividend payments and capital gains for investing their money in listed companies.

But certain events – such as a takeover bid – can make a company’s stock price skyrocket, delivering an immediate potential windfall to shareholders. To reap the best returns, however, you need to hold the stock before it becomes a takeover target and without insider information, it can be tricky – but not impossible – to pick the companies that will be targeted.

The pay-off for owning a takeover target can be significant. A credible bid usually drives a company’s share price higher as soon as an offer is made, even though the actual sale may take months or years to come to fruition – or may not go ahead at all.

Australand Property Group’s shares jumped 6.3 per cent in December when the company received an unsolicited takeover offer for part of its business from GPT Group. Similarly, financial advice and accounting company WHK Group’s shares rose 8.7 per cent in October when it was approached by another financial planning business, SFG Australia, for a possible merger."

Read the full article here - http://www.afrsmartinvestor.com/p/magazine/get_rich_quick_buying_takeover_targets_HMW4WYqh2MwcsSRwesqdvL

So where to you go from here? my advice to get ahead of the rest is to set up some Google alerts, these will directly email you for certain search terms such stock market news or company takeover. Once you have the info on a possible target you can monitor volume and decide if you want to trade.

Oh and if you need info on how to set up a Google alert you can find it here