nopaypal
Joined: 23 Feb 2006
Posts: 2008
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| Posted: Thu Aug 10, 2006 12:34 pm Post subject: jim cramer |
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i'm no fan of this nut job, but he does get a lotta publicity. and his observations on this situation are a hoot!
8)
Second on his list is the "don't just stand there, do something" acquisition, in which a company that's in trouble and doesn't know how to get out buys another company, Cramer said.
These companies are "scared and desperate" for a new concept, but according to Cramer, this is "money down the drain."
eBay's (EBAY - commentary - Cramer's Take) purchase of Skype is an example of this, he said.
eBay's management tried to keep the company rolling by buying Skype, but it ended up costing the company billions and didn't amount to any good for eBay, Cramer said.
"Lousy purchase" -- No. 3 -- or "panic and overpay," occurs when a company is worried about its slowing growth or competition and pays too much for an acquisition, he said.
read the entire article here |
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