Mergers and Acquisitions: Do Stocks Miss Out if They Miss Davos?

Davos is a hive for mergers and acquisitions, but some of the big guns are dismissive. Are they missing out?

The most exclusive destination in the world right now is a mountain village in Switzerland - Davos - where the world's biggest economic leaders are currently meeting for the World Economic Forum. 

Prime Ministers David Cameron and Shinzo Abe will be there, so will US Treasury Secretary Jacob Lew. However the vast majority of the attendees are in the private sector, global leaders in their field, who gather to contemplate the world economy. 

That, and network like it's their job.

One of the largest mergers of the year, between advertising giants Omnicom (OMC) and Publicis (OTC: PUBGY), was conceived in Davos last year. Even more scrutiny is on Davos now, as people are starting to wonder what corporations will do with all the cash they have on hand.

But mergers and acquisitions were rather low in 2013, still at 2009 levels despite a US stock market that made record gains. Heading into the new year, Davos is seen as incredibly important to some executives when it comes to making M&A deals.

Many report that it is by far one of the most congenial atmospheres for rubbing shoulders they have access too, as conferences and meetings often align very important people without the usual retinue of guards and flatterers.

Most of the financial world will be there, including major players like JPMorgan (JPM) and BlackRock (BLK), as will many giants in the service industry who cater to them, such as high end hospitality companies like InterContinental Hotels Group (IHG). 

However there are also some detractors. Mayor of London Boris Johnson said it was simply a series of "massive mutual orgies of adulation." Warren Buffet has never attended, and neither have Apple (AAPL) CEOs Tim Cook or Steve Jobs. 

So we built a list of stocks that are major players in Davos, as well as some of its biggest haters [read: noteworthy abstainers]. But does an event like Davos really impact a company's share price? Are absentees missing out on an important opportunity, or are they making a bold statement that could pay off?

Click on the interactive chart below to view data over time. 

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Are these stocks missing out if they miss Davos? Use the list below to begin your analysis. 

Absentees

1. Apple Inc. (AAPL, Earnings, Analysts, Financials): Designs, manufactures, and markets PCs, mobile devices, and portable digital music players, and sells related software, services, and third-party digital applications. Market cap at $499.93B, most recent closing price at $549.07.

 

2. Berkshire Hathaway Inc. (BRK/B, Earnings, Analysts, Financials): Is a publicly owned investment manager. Market cap at $190.39M, most recent closing price at $115.15.

 

3. General Electric Company (GE, Earnings, Analysts, Financials): Provides information technology (IT) products and services worldwide. Market cap at $197.39B, most recent closing price at $188.43.

 

4. International Business Machines Corp. (IBM, Earnings, Analysts, Financials): Provides information technology (IT) products and services worldwide. Market cap at $197.39B, most recent closing price at $188.43.

 

Attendees 

5. BlackRock, Inc. (BLK, Earnings, Analysts, Financials): Provides its services to institutional, intermediary, and individual investors. Market cap at $54.40B, most recent closing price at $318.77.

 

6. JPMorgan Chase & Co. (JPM, Earnings, Analysts, Financials): Provides various financial services worldwide. Market cap at $231.67B, most recent closing price at $58.17.

 

7. Intercontinental Hotels Group plc (IHG, Earnings, Analysts, Financials): Intercontinental Hotels Group plc

 

 

8. Diageo plc (DEO, Earnings, Analysts, Financials): Engages in producing, distilling, brewing, bottling, packaging, distributing, developing, and marketing spirits, beer, and wine products. Market cap at $83.01B, most recent closing price at $131.73.

 

(List compiled by James Dennin. Analyst ratings sourced from Zacks Investment Research, all other data sourced from Finviz.)

Analyze These Ideas: Getting Started

Read descriptions for all companies mentioned Access a performance overview for all stocks in the list Compare analyst ratings for the companies mentioned Compare analyst ratings to annual returns for stocks mentioned Real-Time Opinion: Scan the latest tweets about these companies (feed will open in a new window)

Dig Deeper: Access Company Snapshots, Charts, Filings

Apple Inc.(AAPL, Chart, Download SEC Filings) Berkshire Hathaway Inc.(BRK/B, Chart, Download SEC Filings) General Electric Company(GE, Chart, Download SEC Filings) International Business Machines Corp.(IBM, Chart, Download SEC Filings) BlackRock, Inc.(BLK, Chart, Download SEC Filings) JPMorgan Chase & Co.(JPM, Chart, Download SEC Filings) Intercontinental Hotels Group plc(IHG, Chart, Download SEC Filings) Diageo plc(DEO, Chart, Download SEC Filings)

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