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Make acquisitions?

Is there a rationale for consolidation among New Technological Corporations? In other words, should a New Technological Corporation attempt to grow by acquisition of other companies? Since a New Technological Corporation accumulates a large pool of cash and since its stock bears a high price/earnings multiple, it has the financial muscle to go on the acquisitions trail. Let's see if that strategy makes financial sense and, if so, what kinds of acquisitions should be on the shopping list.

Editor: John Walker