New Constructs

Why Companies Overpay For Acquisitions

Overpriced acquisitions are far from a new phenomenon, but they’ve been especially prevalent in recent months. As a result, we’ve gathered some ideas about the various reasons companies ignore the evidence and continue to overpay for acquisitions.
by Sam McBride

Danger Zone: Post Holdings (POST)

This week’s Danger Zone focuses on another food products business, similar to recent Danger Zone stocks WhiteWave (WWAV) and Snyder's-Lance (LNCE). Large destruction of shareholder value, skyrocketing debt levels, and insufficient returns on invested capital (ROIC) play a part in Post Holdings (POST: $67/share) landing in the Danger Zone this week.
by Kyle Guske II, Senior Investment Analyst, MBA