Diamonds and Dogs


Is United Technologies (UTX) getting bought out? United Tech jumped 4% lifting the industrial sector on news they held takeover talks with rival Honeywell. If Honeywell, a maker of aerospace parts and climate control systems merged with United Tech, a maker of Pratt & Whitney aircraft engines and Otis elevators, would create a company with combined sales of $100 billion and a market cap of $157 billion. Compared to rival GE, they do only 22% less in sales, but only half the market cap. Sounds like United Tech and Honeywell are undervalued or GE is overvalued.

More problems at Lumber Liquidator. Lumber Liquidator (LL) is down 19% back toward its 52 week low after health officials said some of the company's flooring carries higher cancer risks than previously thought. The Centers for Disease Control and Prevention said that the cancer risk posed by the formaldehyde in certain laminate flooring is three times higher than estimated. The company has discontinued the flooring and may face more litigation issues in the future. The CEO, John Presley was recently diagnosed with a treatable form of leukemia. Tough times at Lumber Liquidator.

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.