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Takeover Target Screener
With the announced takeover of Darktrace (LON:DARK) - is there a screener that could be used to identify companies that could potentially be takeover targets?
Apart from specific sectors which may be in demand - what other attributes would you screen for?
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3 comments
If I had to pick one now, it would be Sanderson Design (LON:SDG).
It would probably be rather difficult to screen for potential takeovers. One approach could be to screen for shares which are undervalued. Although this would not be simple it would bring the potential benefit that undervalued shares tend to revert to the norm over the long term. ie they are more likely to go up in price while you are hanging around hoping for a potential takeover. The downside of this approach is that just about every other potential investor is looking to buy shares which they consider to be undervalued.
But Darktrace (LON:DARK) has a VR of 6. I don't think it is possible to screen for takeovers. All of my shares that have been taken over, l don't think any were high value stocks.
Many cheap stocks have high debt or other reasons, although debt does not seem to put takeovers off, as has been reported.