Recent take-overs, mergers and B-waves.

Danaher Corp’s , , recent take-over bid was done rather precisely at the peak of a B-wave in the target stock Beckman Coulter, . Both are shown below;

dhr bec

Note that the “currency” of the take-over (stock/cash) is at a high as DHR is quite obviously peaking. What is more interesting is that the target, BEC, is also at a high. It would seem that the “relative” values are less important than that they are at highs. This phenomenon can be observed in quite a few of these situations recently. Here are just 2, Ensco and Pride International Inc. , , and the TSX, .

pde x feb 2011 big

All are at double tops and have completed clear B-waves. except the Toronto Stock Exchange X. All are sells.