Netflix, Inc. (NFLX), Time Warner Inc (TWX) & Five Takeover Rumors And the Hedge Funds Who Own Them

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Joy Global Inc. (NYSE:JOY), a manufacturing of mining equipment, has been experiencing some takeover rumors regarding an acquisition by larger equipment companies. The industry is being avoided by many investors given the current uncertainty over macro conditions, with the result being that Joy trades at less than 10 times earnings whether we use trailing numbers or expectations for the fiscal year ending in October 2014. Of course, it’s possible that caution is warranted with the stock’s beta being 2.0. Renaissance Technologies, whose founder Jim Simons is now a billionaire, was buying shares of Joy Global Inc. (NYSE:JOY) in the fourth quarter of 2012 (research more stocks Renaissance likes).

Icahn has also been a buyer of Nuance Communications Inc. (NASDAQ:NUAN), a $6 billion market cap voice and language software company; Nuance Communications Inc. (NASDAQ:NUAN) has been rumored to have engaged sell-side advisors following interest from private equity investors. The company is, if anything, a growth play: the trailing earnings multiple is high but the forward P/E is more reasonable (at 9) and analyst expectations for growth over the next several years result in a five-year PEG ratio of 0.7. Nuance Communications Inc. (NASDAQ:NUAN) fell 19% after its report for the second quarter of its fiscal year (the quarter ending in March) underperformed expectations and the company posted a weak outlook for the year.

Disclosure: I own no shares of any stocks mentioned in this article.

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