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SO, the big merger news today is that Disney is going to buy Marvel. Marvel has been doing reasonably well lately, thanks to the recent popularity of comic book movies. The deal is being valued at around $4 billion. (Incidentally, that is the amount of the initial profit taxpayers have made on bank bailout paybacks.) At any rate, the shareholders who own Marvel right now will receive $30 cash per share they own. They also get 0.745 shares of Disney for each share of Marvel that they own. Which is kind of a bummer, since Marvel closed at $38.65 on Friday. Let’s do some really simple math for a minute, to see how this works out. And Disney closed at $26.84.

Let’s say you own 100 shares of Marvel. On Friday, these shares were worth $3,865. If you wait for Disney to buy them, they are worth $3,000. You will get this in cash. However, you will also get some Disney stock. You will end up with 74.5 shares of Disney on top of the cash. So, going with Friday’s close, that means your new Disney shares are worth $1,999.58. So you come out ahead after all — if you sell your Disney shares and your taxes and transaction fees don’t end up destroying the value.

Of course, this doesn’t take into account things like taxes, the fact that Disney stock is down along with the rest of the market (Marvel stock, though, is up today), and other factors. It’s just a rough estimate of the deal, which turns out to be a pretty good one for Marvel holders. Of course, with Marvel stock trading at $48.45 right now, you could end up with $4,845 in cash if you sell. Which still doesn’t quite overcome the advantage of Disney’s cash plus stock offer.

My real question is this: Will Disney ruin the Marvel comic movies I have been enjoying lately?

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.

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Even though things have been a bit volatile on the stock market, that’s no reason to give into fear. Instead, consider that cycles are common. There are periods of growth and recession in the economy, and there are ups and downs on the stock market. Over time, though, the bumps smooth out and gains are to be head. While it is possible that the long term market (20-25 years) could lose, it hasn’t happened yet. When a stock market crash comes, it is important to take a deep breath and try to analyze the situation in as calm a manner as possible.

First of all, it is important to look over what you have. If the fundamentals of your investments haven’t changed, there is very little that you need to change. For stocks, you should consider that they are likely to gain in the future, and that right now, sticking with your investment plan, you can get them “on sale.”

Another thing you should do is continue to fund your retirement accounts. Jeff Rose, CFP, points this out in Good Financial Cents:

Just because I’m suggesting to fund your retirement accounts doesn’t mean you have to put in all in the market.  You will want to at least fund your retirement accounts to either get the 401k match or the tax free savings of the Roth.  Even if it’s invested into bonds right now, you’ll be able to transition to stocks later on when you feel more comfortable.

Rose also suggests diversification. You want to make sure that you are appropriately diversified in your investments, and that you have additional asset classes beyond stocks and bonds that can help protect your portfolio against huge losses — and help it recover faster.

In the end, it’s all about a measured approach. Review your investment plan, and determine whether, in essentials, it is still sound. If it is, continue business as usual until the economy and the market recover.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.

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Earlier today, stocks were higher on the news that June home sales were higher than expected. Indeed, the news provided a bit of a jolt for Wall Street, since the indication was that the housing market might have bottomed. There are hopes that perhaps rising home prices and rising sales could be a sign that things are on the verge of turning around. That good news, however, was drowned out by earnings news from various companies.

Earnings is still a focus for investors on Wall Street. And earnings are still rather lackluster. Even though there has been some positive earnings news, those surprises have not been as prolific as one might hope. There is some hope that stocks might turn around as Euoprean stocks did. After falling close to the end of the day, European markets managed to pull out of it and end higher. However, it would take some effort on the part of bulls to make it happen.

Treasury auctions in focus for Wall Street

In a break from recent history, it appears as though Wall Street will be taking interest in this weeks Treasury auctions. Investors will be looking for signs of inflation and also for signs that economic recovery is underway. Here is what MarketWatch says about Wall Street’s interest in this week’s Treasury Auctions:

“The one thing that makes this all plausible is that last week, the Fed Chairman [Ben Bernanke] in his testimony to Congress stated that while the recovery may be underway, it will not likely include inflation,” said Kevin Giddis, head of fixed income trading and research, Morgan Keegan.

“This was the best news the markets could hope for and it is likely the reason for the rally in stocks,” said Giddis of last week’s trade, which on Friday had the Dow industrials closing at their highest level since early November.

All in all, it should be an eventful and interesting week.