Stocks positioned to benefit from deal activity: Hot picks
Increased merger and acquisition (M&A) activity in the resources, sporting and biotech sectors has one investment professional calling for stocks that could benefit from the deal flow.
In an interview with BNN Bloomberg’s Andrew Bell, Julian Klymochko, chief executive officer and chief investment officer of Accelerate Fintech, said there’s been an uptick in M&A activity within the resources and biotech industry that has come from a rise in commodity prices and drug development. He’s also looking for possible deals within the sports industry.
“In the resource sector, you’ve had commodities really on fire over the past say 18 months going up a lot in price. When we see a bull market in commodities we tend to see consolidation,” Klymochko said.
He recommended Teck Resources Ltd (TECK.B), Manchester United Plc. (MANU) and Madrigal Pharmaceuticals Inc. (MDGL) as his top picks for merger and acquisition targets.
Klymochko, his family and his investment banking clients do not own any shares mentioned above, however, his firm does own stock of Teck Resources.
Check out the full video at the top of the article to learn more.