ย
Today we are watching…
1. Stanley Black & Deckerย (#stanbd)
This toolmaker just bought into Boeingโs supply chain on the cheap (by cheap, we mean $1.5 billion!). Commercial Aerospace Manufacturing (CAM) is responsible for the fasteners and loose components of modern-day jumbo jets, which canโt be easily replicated, and therefore enjoy premium prices and reduced competition. Black & Deckerโs CEO called CAM a โhigh growth, high marginโ business, pleased with the deal as the manufacturer went on discount with Boeing’s 737 MAX crisis. Assuming the plane is one-day cleared for takeoff again, Black & Decker will be poised to benefit just as it has many times before from well-timed acquisitions. Shrewd stuff!ย
2. Navistar (#nav)
At the tail end of last week, truck maker Navistar received an unexpected letter in the mail that sent its shares soaring. Volkswagenโs trucking business, Traton, offered to buy out all of Navistarโs remaining shares for double their market price. Investors bid up the stock almost 60% straight away, but they may have jumped the gun. A spokesperson for Navistar recently came out saying there were โno assurances of the proposal taking place.โ The companyโs billionaire investor, Carl Icahn, will probably push for it. However, the president of Navistarโs native Clark County also pointed out that โmany families have moved to the country due to opportunities at Navistar.โ Itโs her against the Icahn!