Two Ways to Play: Warren Buffett's Sugar High
Mars' Wrigley buyout could create world's largest candy maker, opportunity.
Elsewhere, Microsoft (MSFT) shares were beat up today after Yahoo (YHOO) let Saturday's deadline pass. In January, Microsoft offered over $40 billion to take over Yahoo. Now Microsoft must decide whether to walk away or start one of the largest take-over battles in corporate history.
Kirk Kerkorian and his investment company, Tracinda Corporation, disclosed a 4.7% stake in Ford (F) and offered to buy 20 million more shares for $8.50 a share, a 13% premium to Friday's close. The stake would bring his total to $5.6% and the news sent Ford's stock surging up as much as 10%.
Feel free to check out Todd's comments in Monday Morning Quarterback.
From the Bull Pen:
A number of other candy makers rose in sentiment on the Wrigley buy-out such as Tootsie Roll (TR), Hershey Company (HSY), and Cadbury Schweppes (CSG). Although the takeover possibility is a stretch, bulls might continue to look to these stocks as they sit in a favorable space given the overall macro concerns.
MSFT dropped 3% in today's session. The sell-off seemed overdone to a number of professors at the 'Ville. Professor Quint Tatro mentioned sell-stops on a clear break of $28.00.
From the Bear Cave:
General Motors (GM) jumped as much as 3% in today's session on the Tracinda/Ford news. Yet nothing about the company's business has changed and its challenges in a slowing economy still remain. Bears are eying the $25 level on GM as a downside entry, if and when the stock approaches that level.
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