Is it good or bad for listed companies to buy other companies?
Generally speaking, the acquisition of other companies by listed companies is good for the stock price, but it needs specific analysis. Let me list a few situations that need special vigilance:
In the first case, in the bull market, the acquisition news is very popular, and the stock price trend is undoubtedly positive; However, if the stock price rises sharply before the news is announced, then we should be alert and alert to the main use of favorable shipments. The so-called market is dead, because the prophetic funds have already been laid out.
In the second case, if the market is in the stage of bear market decline, all stocks are falling sharply at this time, even the best stock news is difficult to change the market environment, and the main funds will not move against the market, so it is the best policy to follow the trend. At this time, investors should pay special attention to the rapid rise of the stock price after the news is announced, and the market outlook is very easy to fall back, so the main force will take advantage of favorable shipments.
In the third case, the specific price of assets acquired by the company will generally be purchased at a premium, but some purchase prices are ridiculously high, so investors should be wary. Such acquisitions are very dangerous.
Generally speaking, when a stock releases such news, investors can't buy it immediately. They need to combine other factors to analyze and judge whether they can intervene. That's all. I hope it helps you.