In the latest shakeup of the FTSE 100 index, Just Eat is out and takeover targets Morrisons and Meggitt are in. The Weir Group also went out.
Following the bid battles for Morrisons Supermarkets (MRW) and Meggitt (MGGT), these two soaring shares are joining the FTSE 100 index. Takeaway delivery company Just Eat (JET) just got kicked out by being deemed to be a Dutch rather than British business, and The Weir Group (WEIR) also went out of the index.
What does the latest index reshuffle mean for these stocks?
What Are Just Eat, Morrisons, Meggitt, and Weir?
Just Eat is a food takeaway delivery company that just got booted out of the “footsie” by being declared a Dutch company following its merger with Amsterdam-listed Takeaway.com.
Wm Morrison Supermarkets PLC is a UK supermarket company that has recently been subject to much takeover talk and bid battles between suitors such as Fortress Investment Group.
Meggitt is a multinational company that manufactures components for military aircraft. It has recently been a takeover target for suitors such as TransDigm.
The Weir Group PLC is an engineering original equipment manufacturer (OEM).
Should You Buy Just Eat, Morrisons, Meggitt, or Weir Now?
It might be best to hold off from buying Just Eat shares just now due to the uncertainties of it being declared a Dutch rather than a British company and it falling from the FTSE 100 index (which means its share price won’t be boosted by investors buying index trackers).
In contrast, the share prices of both Morrisons and Meggitt could be boosted by the fact that FTSE 100 index-tracking funds will now be obliged to buy those shares. However, these two stocks seem to be affected most by takeover talk that sends their share prices gapping up.
Weir has fallen from the FTSE 100 simply because some bigger fish have found their way in. Its story hasn’t really changed but it will no longer be bought by FTSE 100 tracker funds.
Just Eat, Morrisons, Meggitt, and Weir Price Targets
Due to the FTSE 100 shakeup and other uncertainties — like Just Eat “going Dutch” and ongoing bid battles for the two “M” stocks — all bets are off. The share prices could go anywhere, but there’s money to be made by savvy investors or guess which way today.
Where Can You Buy These Stocks Today?
You can buy all these stocks via the brokers listed below, at least until Morrisons and/or Meggitt get taken over (and possibly taken private). Due to their promotion to the FTSE 100 index, you can also get some exposure to Morrissons and Meggitt by investing in FTSE-tracking exchange-traded funds (ETF).
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