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5 Stocks That Are Toxic Takeover Targets

No CEO in his right mind should want these stocks

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Danger SignSome deals are so bad that you can see them coming a mile away. Unfortunately, as dealmaking among stocks ramps up this year, these potential duds may get more difficult to avoid: Martha Stewart Living Omnimedia (NYSE:MSO), Research in Motion (NASDAQ:RIMM) and GameStop (NYSE:GME), just to name a few.

The reason for the buzz over merger and acquisition deals why is simple: Mergers are seductive. Tens of billions of dollars are at stake. Thousands of jobs hang in the balance as do the financial futures of scores of shareholders. Moreover, it can be easier for companies to acquire someone else’s successful product rather than develop one of their own.

Many of these companies that may become overbought have well-known brands, which make them specializing tantalizing to buyers who figure they can realize more value from them through better management. Oftentimes, though that’s wishful thinking.

Here is our list of companies that may be overbought. They are in no particular order.

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