Diamonds and Dogs
5/21/12Lowe'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.