i2 and JDA to merge? Don’t buy!

I haven't done the analysis on i2 Technologies or JDA Software Group to find out if they are a Good, Fair or Poor company.  I don't have to since they just merged and since the merger is great than 10% of both companies, they violate the Confident Investor first rule regarding mergers or divestitures - never invest in a company that changes its size more than 10% with a merger or divestiture.

While the merger may be logical and offer great value to the company and its customers, a merger of this size simply is too difficult to do well. A Confident Investor cannot confidently invest in the resulting company until things settle down a bit.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.