RJ Hamster
It’s Time to Go Whale Hunting
Not rendering correctly? View this e-mail as a web page here.It’s Time to Go Whale HuntingBy Joel Litman, chief investment officer, Altimetry Tom Murphy had his sights set on a whale…Murphy had built his empire by making shrewd acquisitions. Over 30 years, he’d helped turn media brand Capital Cities from a one-TV-station shop into an established player.He was known for setting a firm price before diving into negotiations… and aggressive cost-cutting when the deal went through.Once Murphy got ahold of a company, he’d do anything he could to save cash. Sometimes, he took it to extremes – like only painting the sides of his station’s buildings that could be seen from the road.His harsh approach worked. By 1985, Murphy and Capital Cities owned seven TV stations and a dozen radio stations in big markets like Philadelphia and Houston.They were pushing the bounds of the Federal Communications Commission’s “7-7-7” rule… which said companies could own no more than seven TV stations, seven AM radio stations, and seven FM stations.But Murphy wasn’t ready to stop. Capital Cities was still just a small fish in a giant pond.So he set his sights on something much, much larger…TV stations were small game compared with the goliaths of broadcast – the networks themselves…While Capital Cities booked $940 million in revenue, ABC was generating $3.7 billion.But Murphy wasn’t intimidated. He saw a lot of bloat. Despite ABC’s impressive revenue, it only brought in $195 million in net income… just $50 million or so more than Capital Cities.Within a few months, Capital Cities announced it was buying ABC for $3.5 billion. One writer famously described the merger as a “minnow that swallowed the whale.”Then, Murphy got to work.Recommended Links:TODAY: This Stock Could Double Your Money IN A SINGLE DAY Before 2026This morning, Professor Joel Litman is stepping forward with the most urgent recommendation he has made all year. It all centers around a single stock you can buy immediately, which he believes could double your money – IN A SINGLE DAY – before the end of the year… no matter what else happens to the stock market this month. But you don’t have much time to make your move. Before 10 a.m. Eastern time, get the full story here.Executive Order 14318: The Most Important Document You’ve Never ReadThe mainstream media just missed the biggest financial story of the year… President Donald Trump signed an executive order to start unlocking an estimated $5.1 trillion in federal assets for the benefit of every American citizen. Most Americans have no idea this opportunity exists… But according to a former Trump adviser, it could trigger a historic “gold rush” for the American people. SEE WHAT THE MEDIA MISSED.He and his team cut 1,500 staff from ABC’s bloated ranks. They removed perks like a fleet of limos. And they boosted the ABC TV stations’ profit margins from 30% to 50%.Within three years, they’d paid off almost all the debt used to finance the ABC deal. The acquisition transformed Murphy from the leader of a sleepy firm to a CEO rock star.Less than a decade later, in 1995, entertainment titan Disney bought Capital Cities/ABC for a cool $19 billion.Murphy got his start at what would become Capital Cities back in the 1950s… when shares were worth $5.75 apiece. By the time Disney took over, shares were worth a split-adjusted $12,000 each.That’s more than a 2,000 times return. The S&P 500’s return was “only” 60 times in the same period.Capital Cities is one of the best examples of the power of mergers and acquisitions (M&A)…But it’s far from the only example…Equipment-rental giant United Rentals (URI) has ridden M&A tailwinds to a 5,500% gain in 28 years…Aerospace supplier TransDigm (TDG) is up more than 15,000% in roughly two decades…Shares of software provider Constellation Software (CSU.TO) have climbed almost 25,000% in the same time frame…And famed conglomerate Danaher (DHR) has mastered the art of acquisitions… to the tune of 65,000% returns in 56 years.Of course, this incredible upside came over the course of decades. But you don’t have to wait that long to book an impressive gain.Danaher was up almost 600% in one five-year period. TransDigm popped 787% in five years… while Constellation climbed more than 1,000%. And United Rentals’ investors enjoyed a 2,800% gain in the same amount of time.Many folks assume all acquisitions destroy value. And it’s true that there are some truly terrible deals out there.Businesses get greedy, and they get ahead of themselves. They snap up companies with no plan to integrate them. When it all falls apart, investors are left holding the bag.But when you find a savvy strategic acquirer – one that knows what they’re doing and how to get results – it can lead to some of the greatest wealth creation ever achieved.And that brings us to today’s economy – and a unique opportunity that’s shaping up…After Silicon Valley Bank and First Republic collapsed in 2023, the government effectively put the banking industry on probation. Regulators raised capital buffer requirements and federal regulators discouraged bank consolidation.But the Trump administration is taking a different stance. It’s bringing in a wave of deregulation… speeding up merger approvals and reducing holding requirements for banks.Falling interest rates are also making it cheaper for companies to borrow… and they’re using it to finance deals.We’re already seeing these tailwinds bleed into the banking space. In September, PNC Financial Services (PNC) announced a $4.1 billion acquisition of Colorado-based FirstBank.And in October, regional bank Fifth Third Bancorp (FITB) said it plans to buy Comerica for nearly $11 billion.In short, this space is benefiting from some impressive tailwinds…And it’s leading to a unique opportunity – a potential “one-day double” as acquirers scramble for deals by the end of the year.I’m going “live” in just a couple hours, at 10 a.m. Eastern time, to explain exactly what I’m seeing… and how to position yourself for maximum gains.This urgent event is free to attend. All you have to do is reserve your spot right here.The M&A market is finally opening up after a yearslong freeze. That makes this the perfect time to find the next Capital Cities in the making… and get in on the ground floor.Regards,Joel LitmanDecember 8, 2025Tell us what you think of this contentWe value our subscribers’ feedback. To help us improve your experience, we’d like to ask you a couple brief questions.Click here to rate this e-mailA publication from  You have received this e-mail as part of your subscription to Altimetry Daily Authority. If you no longer want to receive e-mails from Altimetry Daily Authority, click here.Published by Altimetry.You’re receiving this e-mail at peter.hovis@gmail.com. For questions about your account or to speak with customer service, call (800) 701-9346 (U.S.), 9 a.m. – 5 p.m. Eastern time or e-mailinfo@altimetry.com. Please note: The law prohibits us from giving personalized financial advice.© 2025 Altimetry. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Altimetry. 110 Cambridge Street, Cambridge, MA 02141.altimetry.com.Any brokers mentioned constitute a partial list of available brokers and is for your information only. Altimetry does not recommend or endorse any brokers, dealers, or investment advisors.Altimetry forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Altimetry (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation.This work is based on SEC filings, current events, interviews, corporate press releases, and what we’ve learned as financial journalists. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. It’s your money and your responsibility. |
