The Wall Street Journal is reporting “Novartis to Pay Infinity to Develop Cancer Treatments”
While we are all for cancer research, it will be really hard to get attractive returns for shareholders on an initial investment of infinity dollars. However, Google (GOOG) may reach the point where a stock-for-stock deal could make sense. Calculating this accretion will require more analysis.
Recommendation: Short Novartis because projects requiring Infinity dollars tend to disappoint; Infinity-1 remains our price target for GOOG.
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