Diamonds and Dogs
Flying higher with today's diamond. Boeing (BA) led the Dow Jones higher up 2.2% on high volume. The air plane manufacture company reported that a Russian air-freight company has agreed to buy an additional twenty 747's with a current 10 as a firm order. The order will be valued at around $3.8 billion. Sales of the 747 have been slow as Boeing announced a cut to production of its 747 to one per month back in March. Boeing also reportedly has a deal in works to sell 100 commercial planes to Iran. Iran and Russia coming to the aid of Boeing. Not exactly our key allies.
The dog is cutting down the cypress tree. The semiconductor company, Cypress (CY), dropped 4% in high volume today. The mid-cap company's shares dropped on news of a $250 million private offering of convertible notes that are due 2022. The company expects to use the proceeds from the offering along with $450 million in term loan to pay the cost of Broadcom Corporation's Wireless Internet of Things business and related assets. The proceeds will also go towards $107 million to repay revolving loans under their existing credit facility and pay fees and expenses associated with it. The notes will be convertible to common stock of Cypress, cash or a combination of the two which could be dilutive to current shareholders.