You're receiving this email as part of your subscription to Trend Trader Daily. Unsubscribe here. BUY BUY BUY! In January, I'll be putting a small fortune of my own money into this tiny $9.50 biotech. Click here for details of this trade » Year in Review in 7 Charts: Betting Big on M&A By Lou Basenese Monday, December 28, 2020 It's a new week and almost a new year. But I'm keeping with my plan to show you a chart each day — a chart that showcases an investment trend I expect to keep charging higher (or lower) in 2021. In other words, these columns are just as much diagnostic as they are prognostic. In case you missed it, last week, I dished on the major market-cap rotation underway into small and micro-cap stocks and the digital transformation of, well, everything! Today, it's time to focus on the seemingly insatiable appetite for corporate Mergers & Acquisitions. Why Takeovers? Why Now? We all know the impact a takeover can have on a company's stock price: When a deal is announced (or even rumored), prices skyrocket. Just ask shareholders of Portola Pharmaceuticals (PTLA). When Alexion Pharmaceuticals (ALXN) pledged to buy the company in May, shares soared 130% higher in a blink. Not bad for a one-day holding period! Thankfully, Portola's situation is not some rare occurrence. In fact, in the third quarter alone, 3,505 deals were announced. And as you can see in the chart below, a flurry of mega deals happened in the fourth quarter. This recent activity all but guarantees the M&A momentum will continue into 2021. Especially since mergers represent the fastest way to grow earnings and one-up the competition... And because historically low interest rates, stockpiles of cash on corporate balance sheets, and higher stock valuations provide all the currency necessary to finance even the most expensive deals. In fact, I'm so convinced that this deal making will continue in 2021, I've decided to focus on identifying the next buyout targets for you. If you'd like to be the first involved, you can find out more details here » Ahead of the tape, Lou Basenese Terms & Privacy | Unsubscribe 301 S. Perimeter Park Dr. Suite 100 Nashville, Tennessee 37211 RISK NOTICE: All investing comes with risk. That includes the investments teased in this letter. You should never invest more than you can afford to lose. Please use this research for the purpose that it's intended — as research only. You should consult a professional financial advisor before ever taking a position in any securities you see herein. SECURITY HOLDING NOTICE: Although we are never compensated from any companies for coverage, you should be aware that Trend Trader Daily, its authors, its owners, and its employees may purchase, sell, or hold long or short positions in securities of the companies mentioned in this communication. While authors might actively transact in the securities mentioned, they will always have a net position that is consistent with the position set forth in our research reports, letters and updates. DISCLAIMERS: The work included in this communication is based on diverse sources including SEC filings, current events, interviews, corporate press releases, and information published on funding platforms, but the views we express and the conclusions we reach are our own. As such, this content may contain errors, and any investments described in this content should be made only after reviewing the filings and/or financial statements of the company, and only after consulting with your investment advisor. Actual results may differ significantly from the results described herein. Furthermore, nothing published by Trend Trader Daily, Inc should be considered personalized financial advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. Trend Trader Daily is an independent provider of education, information and research on publicly traded companies, and as such, it accepts no direct or indirect compensation from any companies or third parties mentioned in any of our letters, reports or updates.

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