Diamonds and Dogs
June 15, 2010Diamond
NBTY Inc Common Stock, NTY
Stocks looked good for NTY early in trading. Shares were up to $53.92, an increase of 43.9% or $16.45. However, the growth was not natural. The nutritional supplement company was recently bought out by a private equity firm, The Carlyle Group, over an agreement which was valued at $3.8 billion. Carlyle is buying all the remaining outstanding common share stock for $55 a share. The deal is not expected to close for a while as NBTY is allowed to look into other proposals for about a month. If nothing arises, the deal would be finalized by the end of the year.
Philadelphia Federal Reserve Business Outlook
The big Dog of the day is the Philadelphia Federal Reserve Business Outlook, whose index dropped 2.9 points from 8.0 in June to 5.1 in July leading to numerous other dogs in the market. Much of the data points to a weakening manufacturing sector which may turn production to negative in the upcoming months. The Dow Jones opened about 16 negative and reached as low as 120 pts down.