Jeff Yastine, who’s acted as the editorial director of Banyan Hill Publishing since joining the company in 2015, recently discussed a new trend that feels will cause significant disruption throughout the stock market. This new trend, involves a shifting practice amongst many top executives, as, instead of focusing on growing their companies in organic fashion, from the inside, they’ll be putting significant energy into mergers and acquisitions. Jeff Yastine’s prediction regarding mergers and acquisitions being the new trend didn’t take very long to prove correct. As talks regarding Embraer, a Brazilian aircraft manufacturer, possibly merging with Boeing began heating up, so did the price of Embraer stock. He recently listed several companies that might be due to experience significant increases regarding stock value, as they are in prime position for acquisition. The top three companies that Jeff Yastine recommends focusing on in order to bring gains to your portfolio are Kroger, eBay, and W.W. Grainger.
Recently, the stock value of Kroger fell about one-third, as the acquisition of Whole Foods by online retail giant, Amazon, led many to question Kroger’s ability to keep up with the new competition. Jeff Yastine, who was never a proponent of the acquisition, recently pointed out that the merger hasn’t brought forth any significant savings regarding the price for customers, and many people are beginning to speculate about a drop in overall quality regarding the grocery store chain. Jeff Yastine is of the opinion that Kroger is in a good position to compete with Whole Foods due to the fact that it is well established around the country, operating around 3,000 stores, and as we get further into 2018, the company is planning to implement new automated checkout systems that will drastically cut overhead costs.
He also focused on eBay because it is still currently one of the top auction sites in the world, providing a variety of product categories, as well as buyers and sellers. According to Jeff Yastine, eBay is already primed to topple Amazon in some areas, and if Google were to get involved, the retail juggernaut would have a formidable opponent to deal with. Grainger is the final company that Mr. Yastine Mentioned, as it currently has a strong infrastructure considering the fact that it owns its own distribution and storage facilities throughout the United States. If a company were to battle Amazon, it would need these assets in order to compete effectively.