Merck and Schering Plough Merger

Got a nice bonus this week from the merger of Merck and Schering Plough. I held stocks in both companies and consider Merck as one of my core stocks. As part of the merger, I received $10.50 per share in cash, plus additional shares in the new Merck, for each share of Schering Plough. I've always considered both to be good investments and think the combination of the two will be good going forward.

I always enjoy merger deals of this type, where I get most of my invested cash back. It's like playing with the house's money, since I have practically nothing invested in the stock I received as part of the merger.

The icing on the top of the cake is the great dividend I've gotten from Merck all along. Even if they reduced the dividend 50% due to costs related to the merger, I'd still be happy with the return on investment. But I doubt that's likely to happen.

Merck and Schering Plough Merger

It has been an uneventful week in the stock market. Although I'm pretty pleased with the merger agreement going forward with Merck and Schering Plough. I own shares in both companies and stand to get some cash, $10.50 per share plus .5767 shares of the New Merck for each share of Schering Plough I own. I like the mergers where I get cash, cash is almost always good. Since I bought both stocks when prices were low, I should come out ahead on the deal. Plus the new company anticipates continuing Merck's current dividend payout. So that's the bright spot for the week.

Made some changes to the appearance of my blog, trying to encourage more visitors, I think it's a big improvement. Be the first to sign up as a follower of my blog!!!

News affecting the economy was not particularly good this week. Obama's approval rating is slipping over bailout programs and lack of results. Warren Buffett thinks we need another stimulus package, although I'm a huge fan, I disagree with him on that one. And the jobless rate continues to rise. While it all seems a little overwhelming at times, we just have to keep in mind it won't last forever. Things will eventually gravitate back towards the norm.