CHINA's Protectionism means SVA is no buyout target perhaps
October 15, 2009
– Comments (2) |
RELATED TICKERS: SVA
Many investors wrongly think to invest in a stock in hopes it merges or gets acquired by a bigger company. The Swine Flu sector has already seen that happen. Therefore, a high flying small cap in SVA has some people thinking SVA = Buyout Target. Makes sense right?
Except for the fact that China is now engaging in protectionism. You can not get upset at CHINA when it is obvious this is in retaliation to Pres. Barack Obama's protectionism.
In other words...CHINA to US "HE STARTED IT FIRST!!!!!!!"
And indeed Barack Obama DID start the protectionism first..
1) Stimulus Package JOKE contained "Buy American Only" in the legislation.
2) Tire Tarrifs
3) Selective Buyout / Friendly Loans to American Owned Auto Companies.
CHINA sees the writing on the wall with Obama's actions and they have responded in kind to shutting down Foreign Investment in the Video Game sector.
Certainly, CHINA would do whatever it could to shut out other things....like Vaccines from a Foreign Joint Venture / Merger between SVA and a European / American biotech.
So.... Don't be all excited over SVA entirely based on expecting a Buyout anytime soon.... Cause it may never happen and certainly I don't think it will happen this year.
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