That's a lot of money! That's also the same rumor (now more solid) that goosed the market last Monday and goosed the stock over 10% from $63 to $70. This morning, AZN is going up another 15%, all the way from $68 to $80 and the timing of the release was just PERFECT to boost the EU markets and the US Futures, despite the horrific morning that the Asian markets had. As I warned our Members this morning in our Live Chat Room:
The fact that one multi-Billionaire can afford to buy crap from another multi-Billionaire with money they are able to borrow at 3% doesn't tell you anything real about the economy.
What is real is the Shanghai dropping 1.62% today, finishing at the low, just over 2,000 (not reflected in chart yet). What kind of moron would ignore something that significant going on in the World's 2nd-largest economy? Oh yeah, US investors, apparently…
PFE had offered AZN $76.62 per share in a mix of cash and stock back in January, which drove AZN's stock from $57 to $64 and, even after AZN declined, there have been rumors all year that have kept AZN afloat at high valuations.
All we know for sure is that PFE has admitted they have contacted AZN to "renew discussions" but PFE's stock has made no progress this year, so they'd have to pony up a lot more cash to satisfy the rumor mill. Nonetheless, all Healthcare stocks are rising in Europe and the US this morning and Healthcare is about 13% of the S&P, right up with Financials in significance so isn't it a very happy coincidence for those who needed the market propped up that we had such a big deal announce, or re-re-reannounced this morning?
Especially for the Russell, where we're getting some nasty-looking "Head and Shoulders" action on the weekly chart (and Nasdaq looks the same) and those weekly patterns are much tougher to fake, aren't they? We'll have to wait and see how the next two weeks play out because April ends on Wednesday, so we can't count on that AND we have a Fed Meeting that day too – another huge wild card to be dealt.
IN PROGRESS
