Diamonds and Dogs
Orbital ATK (OA) is blasting off. The missile technology company is up 20% after agreeing to be bought out by Northrop Grumman for $9.2 billion deal in cash and debt. The acquisition of Orbital would strengthen Northrop Grumman's capabilities in military aircraft technology and missile defense. Orbital ATK makes launch vehicles and their propulsion systems, missile technology, defense electronics, precision weapons, armament systems and ammunition. It also builds up Northrop's space operations with Orbital's satellites and advanced aerospace structures.
Another company gets Amazoned. Toy maker, Mattel (MAT) is down 6% to a new 52 week low on news Toys R Us is on the verge of filing for Chapter 11. Toys R Us is one of the three largest customers for both Mattel and Hasbro, according to the companies' most recent annual reports. The other two are Wal-Mart and Target. Mattel said in its annual report that it typically makes sales on credit, without collateral, and it warned that a bankruptcy filing by any major customer could significantly affect revenue and profitability. Toys "R" Us is the second-largest U.S. toy retailer behind, you guessed it, Amazon.com.
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