08-27-2019, 08:48 AM
(08-27-2019, 08:43 AM)stockguru Wrote:(08-27-2019, 08:36 AM)Kerim Wrote: Pretty annoyed that I didn't pull the trigger on MO yesterday!
Kerim why not just buy PM here? Higher dividend and you get a nice price this morning!
I hold both PM and MO. The market seems to be implying that PM will pay a significant premium for MO, and may take on debt or dilute existing shareholdings to finance the deal, hence PM's stock drop and MO's gain.
Having held through several mergers (most recently BMS into AMCR), it takes a lot of time for the structure of the deal to shake out. Until then, there will be market uncertainty and price fluctuations. I'm just going to continue to hold both for now.