By Pete Julius
The stock market may have rebounded to pre-September 11 levels, but the economical and psychological effects remain uncertain.
As the economy continues to struggle, predicting corporate behavior becomes more difficult. Merger and acquisition activity is beginning to regain momentum, IPO’s are still stagnant and financial institutions are sitting on their hands. Companies are adjusting forecasted figures, putting plans on hold, restructuring and in extreme cases filing for bankruptcy. So, what does this tell us?
Looking at the core of these companies and linking them to recent events does reveal some interesting conclusions. For instance, as people are still reluctant to fly there is an increasing demand to conduct teleconferences. JDS Uniphase, Tellabs and other companies in the fiber optic industries stand a strong chance to rebound. Cepheid, which makes devices that detect biological agents, and other related companies are in good position to achieve great gains. These are examples of companies that can provide comfort and security.
Any organization that can assist the nation to move forward, stimulate the economy or reduce fear of more possible threats will receive the most gain, at least in the short-run. However, any additional, monumental terrorist attacks could pose a serious threat, which could explain why financial institutions are sitting on their hands.