Investing: Mergers and Acquisitions

A Wall Street provides three reasons why we will continue to see M&A activity:

• Companies have cleaned up their balance sheets making M & A possible
• Companies are earning "nothing" on their cash due to low interest rates
• In this economy, only way some companies can grow is through acquisitions

The reporter left out at least two more reasons:

• Those low interest rates make deals more inviting
• Depressed stock market has resulted in companies being unfairly undervalued

In the Bakken, there are at least two more reasons:

• High CAPEX and aggressive drilling program can often exceed companies' cash flow
• Operators can lose leases if drilling not begun