Disney said today that it would be purchasing Marvel Entertainment. The deal will cost Disney $4 billion in cash and stock. Once the deal is made, Disney will get licensing and ownership rights to the entire Marvel character library; which includes over 5,000 characters in total.

The company is hoping to reach the entire teen/young adult demographic by reaching young males also. After seeing such a boom with the success of Hannah Montana as well as the Jonas Brothers, Disney wants to reach young males also.

The deal is all but done. The boards of both companies have already agreed to the deal and are now just waiting on an antitrust review as well as the approval of Marvel shareholders. According to the deal, Marvel shareholders will be receiving $30 per share as well as 0.745 Disney shares for every share of Marvel they own.

I have to say, it is a bit odd to think that Spiderman and the X-Men would be wondering around Disney World with Mickey Mouse and Sleeping Beauty, but if that’s what Disney thinks will help their bottom line, then I suppose that the company is doing the right thing. For that reason, I can’t see a reason why either board would want to decline the offer. It really is in the best interests of Marvel to go with Disney; after all, this is the best way for the brand to expand. Marvel (to my knowledge) didn’t have a theme park where fans could go “visit” their favorite characters while DC comic characters can sometimes be seen wondering around Six Flags theme parks. Some of Six Flags’ most popular rides are named after DC comic characters. On a recent trip to Six Flags in St. Louis, the lines were fairly short for rides like Thunder Rapids, but the lines for “The Batman” and “Mr. Freeze” were ridiculous.

Nobody has said it in so many words, but we are at the end of the recession. In a time when the economy is going to rise and fall as it stabilizes, it is important to know when a stock is about to falter. Everyone knows the basics. Avoid investing in companies that generate sub par earnings, has weak cash flow, or a less than adequate balance sheet. However, there are other nasty characteristics a stock can hold that will drop it into the toilet in inclement economic weather. Keep an eye out for these other symptoms that show an avalanche ahead.

It is not uncommon for a company to lower their earnings guidance. That can happen for a number of normal reasons that happen in the cycle a company goes through: slightly dropped earnings, a weakened economy, etc. Just make sure that the company in question clears the bar they set in that quarter. Why is that? Of course you’re more worried about the value of the stock than the revenue earned from them. Unfortunately, some shareholders, especially those with controlling interest are so worried about the revenue coming in and the performance of the company that value will go down as people sell for lower and lower prices to get out if they do not have faith in the management of the corporation.

It is also not uncommon for insiders at a company to sell off some shares, especially if life changes they are undertaking require quick funds. Other times, you may be looking at an insider that just wants to make some quick income or diversify their holdings. Sometimes if a bunch of executives all dispense of some of their shares at one time, you are looking at a disastrous future. You begin to wonder, “What do they know that I am not aware of?” Be very wary of executives selling at or near their low points. That tells you the executives think their money is better elsewhere, and yours very well may be too.

Another signal that a stock may be in trouble is when a company abruptly discontinues its guidance toward the investment industry. This may signal that the company has no idea or expectation to have an idea of when earnings could come in. This may also have a minor signal in the way of product or service diversification. The company and its stockholders are in trouble if the company cannot keep up with the accelerating market and/or does not come up with new, innovative products or services to keep up or stay ahead of the industry. You do not want to invest in a company that is “betting all their money on one horse.”

Keep an eye on industry trends as well. Sometimes the nature of the industry at that moment can impact that one company and its competitors at the same time. For instance, General Motors, Chrysler and Ford all came down with the same ‘disease’ at the same time, due to the same debts and the same mistakes. That was the time all GM, Chrysler and Ford stockholders bailed at once, and rightly so. Investors with a sharp eye that receive good, up-to-date news and suggestions from a website like this one may be able to limit or prevent losses just by watching these early signs.

Well it’s happening…the government is taking over Fannie Mae and Freddie Mac as soon as tomorrow…well this morning. These two mortgage lenders either back or actually hold HALF of the country’s mortgage debt…and they’re obviously in trouble. According to the AP, a government bailout of these two lenders could cost tax payers $25 billion…this is going to be a HUGE issue in the coming up election…hopefully.

According to consumer affairs website The Consumerist , this is how the bailout happened:

• Henry Paulson, the US Treasury Secretary, told Fannie Mae CEO Daniel Mudd and Freddie Mac CEO Richard Syron that not only them, but their boards were fired.
• Common shareholders will be almost completely done away while preferred shareholders, which are mostly banks, will be spared.

Most importantly, however, is that these two HUGE lenders will function as normal. Remember though, as a United States tax payer, you now own a portion of the homes backed by Fannie Mae and Freddie Mac. Lets hope things get better soon.