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Two Ways: Pulte, Centex Join Hands

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Strengthen your portfolio in good times and bad.

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M&A Madness!

A surprise M&A announcement this morning: Pulte Homes (PHM) said it will acquire Centex Corp (CTX) in an all-stock deal worth $1.3 billion. Under the terms of the agreement, Centex shareholders will receive 0.975 shares of Pulte stock for each share they own. This would bring the value of Centex shares to $10.50, representing a 38% premium to yesterday's closing price.

Pulte president and chief executive officer Richard J Dugas, Jr said the combination allows the new company to capitalize on Centex's entry-level and move-up categories and Pulte's move-up and active adult segments. Further, Pulte will gain access to Centex's sizable holdings in both Texas and the Carolinas, 2 areas that continue to exhibit strength despite the housing downturn.

From the Bull Pen: Bulls can look elsewhere like Agnico-Eagle Mines (AEM). One can set a sell stop near $47-$48.

From the Bear Cave
: Real estate plays may get a lift from this announcement, but if you believe these stocks will need to retest their lows, consider a play in MDC Holdings (MDC); a buy stop can be set above $31.

Quick Check Around the World

Asian trading closed with the Hang Seng -3.04%, Nikkei -2.69%, India 1.97%, Shanghai -3.76% and Taiwan -2.39%.

Glancing towards Europe, we see the CAC -0.33%, DAX -0.50%, FTSE -0.66%

As of 8:00 AM EST, S&P Futures are trading -5 to 808.00, and Nasdaq futures are -0.25 to 1280.00.

A Look at Commodities

Over in commodities, crude oil is trading -1.06 to 48.09 while gold is +1.00 to 884.30 this morning. Silver is +0.100 to 12.220 and copper -1.50 to 197.50.

The dollar index is +0.045 to 85.7100.

On the Radar

Economics

07:00 MBA Mortgage Applications
10:00 Wholesale Inventories -0.6%
02:00 FOMC Minutes

Earnings

Before: STZ, FDO, GBX

After: PBY, WDFC

Click here for the full trading radar.

Good luck today, Minyans!



In memory of our fallen friend and trusted colleague, Bennet Sedacca, 100% of the donations made to the RP Foundation through April will be channeled to philanthropic endeavors consistent with the RP mission, working closely with the Sedacca clan in the distribution of those funds. We thank you kindly for your support as we strive to effect positive change in the lives of children.
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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