1. Low natural gas prices and high drilling costs will allow for large integrated oil companies and Master Limited Partnerships to consolidate pure play natural gas companies and natural gas assets at bargain basement prices.
2. Internet search engines will go on aggressive content buys because of the need for proprietary content to prevent loss of market share to Siri, the future Android search product, and other similar search products. Expect more deals similar to Google’s purchase of Zagat.
3. J.C. Penney and its CEO from Apple will realize that selling clothing is very different from creating market-leading products.
4. Satellite and cable companies continue to lose subscribers as more and more people access entertainment via the web.
5. Proctor & Gamble follows the Pfizer model and slims down by selling or spinning off Duracell, and possibly even Gillette.
I think 2012 will be an interesting year in the markets. I believe there will be quite a few events, such as mergers or spin-offs that will make for attractive investment opportunities. Although the economy is growing, it is still at a very slow pace and investors will have to be patient to find good investment opportunities.