Lombard Omega Senior Strategist Pleases As Buyouts Lifts Stocks To Highest Level Since January

(1888PressRelease) March 02, 2010 - Major stock indexes rose to their highest levels in more than a month Monday after corporate buyouts raised hopes about the economy.



The Dow Jones industrial average rose 79 points. The Standard & Poor's 500 index, the basis of many mutual funds, erased its losses for the year. The Nasdaq composite index also turned positive for 2010 after a Japanese drugmaker said it was pursuing OSI Pharmaceuticals Inc. and SanDisk Corp. raised its revenue forecast.



The biggest boost for the market came from insurer American International Group Inc., which agreed to sell its prized Asian life insurance business to Britain's Prudential PLC for $35.5 billion. It is seen as a sign of confidence in the economy when big businesses go ahead with takeovers.



AIG wants to sell the division, known as AIA Group, as part of its plan to streamline operations and repay the government. AIG received $182.5 billion from the U.S. government in September 2008. It had reduced that amount to $129.26 billion by end of last year but is still majority-owned by taxpayers.



Stocks also rose on hope that European nations will announce a bailout deal to help Greece with its mounting debt problems. Stocks around the world have been hit at times in recent months because of concerns debt problems in Greece would spread to other countries and undermine Europe's shared currency, the euro.



European Union and Greek officials are meeting and media reports said a deal could be hammered out soon that would involve state-owned banks in Europe buying Greek government bonds.



The corporate takeovers and the possibility of some fix for Greece's problems bolstered a sense that the economy could continue to rebound. Major stock market indexes rose more than 2 percent in February for their best performance since November. Stocks have jumped in the past 12 months but investors have still been concerned that a rebound in the economy will stall.



Trading volume was light Monday, which is a sign that many investors aren't taking part in the buying.



Markus Fairweather, Senior Strategist at Lombard Omega Inc in Seattle, said "The deals signal that companies are becoming more confident in the economic recovery and willing to spend some of their cash."



Fairweather went on to say, "They are at a point now where they can see that the light at the end of the tunnel isn't a train."



Lombard Omega, Inc. is a Seattle based middle market Boutique Investment Banking and Advisory Firm offering specialized advice and services to both Private and Public companies.



Our range of services offered includes mergers and acquisitions, both local and cross border, capital structuring, including raising private equity and placements, promoters funding, mezzanine funding, corporate finance & advisory services.



Lombard Omega, Inc's., team of senior investment bankers have extensive experience and a track record of servicing the need of middle market companies. Lombard Omega, Inc's., philosophy is to work closely with promoters of companies to create customized and innovative solutions.



We, at Lombard Omega, Inc., do not believe in closing a deal for our clients but to start and maintain a life long relationship with them. So the closing of a deal is just a starting point for us. Lombard Omega, Inc. has a wide network of associates and institutional/corporate contacts globally including the Middle East, Europe, Asia Pacific and North America.

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