Where to Invest Money: Reorganizing Companies

Are companies that are going through reorganization always a good investment? The answer really depends on a number of things. Why is the company reorganizing? Often management is blamed and there is a call for a new CEO. Replacing the management is no guarantee of success. Some industries are changing so quickly that management can’t act fast enough. Think about a huge company such as IBM or Cisco which occupy enormous technology space. These companies are required to be on the “cutting edge.” But the "cutting edge” more likely than not is a moving target.

Where to Invest Money In A Global Economy

What about international competition? The world is so much smaller than when I started OMC in 1982. Someone somewhere is always trying to build a better mousetrap or introduce a new product and maybe the geographical footprint of the reorganizing company is just too small to compete.

And don’t forget about us, the consumer. Our habits are changing. Are we older? Has our income increased or decreased? Have we decided that we are going to eat healthier? The consumer is letting McDonald’s know that it needs to revamp its menu because we want better food choices. And, they are listening.

Considering Reorganizing Companies When Evaluating Where to Invest Money

Look under the hood before you rush out to buy a company that is going through reorganization. Don’t let the drop in a stock price of a good company lead you to make a wrong decision. Do your homework!

For personalized advise on where to invest money, let's talk. See you next Monday and have a good week.