Diamonds and Dogs
5/21/12
Lowe's Companies Inc. (LOW)Lowe's Company has gone lower today, down 10.17% at $25.58. Lowe's' first-quarter profit climbed 14 percent due to warmer weather helping boost sales earlier in the quarter. However, the company lowered its full-year earnings forecast, saying it's still cautious because of the weak housing market and other economic conditions. Lowe's said it expects 2012 earnings of $1.73 to $1.83 per share, down from $1.75 to $1.85 per share. It maintained its guidance for revenue to rise 1 to 2 percent, which implies $50.69 billion to $51.2 billion. Analysts expected full-year earnings of $1.87 per share on revenue of $50.94 billion. Lowes is doing poorly today, closing near the daily low.
Cooper Industries PLC (CBE)
Cooper Industries is doing extremely well today, up 25.11% at $69.86. Shares of electronic component maker saw their pop come after announcing it was being acquired by Eaton. In the announced deal, Cooper shareholders will get $39.15 per share in cash and 0.77479 share of Eaton stock. This equates out to be worth about $72 per share in total. The buyout is expected to add $0.65 per share in earnings to Eaton in 2014 and $0.75 per share in 2015. This deal will mark the largest U.S. acquisition for 2012, and is boosting expectations about additional mergers and acquisitions in this sector. Cooper saw a nice bounce after the news, reaching a new 52-week high.
Diamonds and Dogs market commentary is a journal of daily observations on anything that happens to be of interest to our author. Obviously, our primary focus is the stock market and world economic events, but for this page we have no defined topics. We want this page to be dedicated to the interests, concerns, and possibly to the financial gain of our clients and friends. All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.