3 Stocks Priced for Corporate Buyouts

smartmoney.com,
The value of this year's worldwide mergers and acquisitions topped $1 trillion earlier this month, according to data compiled by Bloomberg. That's a modest pace, compared with the frantic deal-making of 2006 and 2007, when full-year M&A volume topped $3.5 trillion and $4 trillion, respectively. However, it represents a 10% increase over the same period a year ago, and activity has been heaviest in recent weeks, suggesting the remainder of the year might be a busy one for takeover advisors.
The companies below turned up recently in a stock screen for attributes that might appeal to corporate suitors. Their takeover prices (stock value, net of cash and debt) are low relative to their core earnings power (profits not including interest, taxes and accounting charges related to past investments). They generate ample free cash for their size. Also, their corporate overhead seems high as a percentage of their sales – a sign of cost savings waiting to be wrung out. (more)