David Zanoni's  Instablog

I have great respect for Warren Buffett’s recent blog about how he and super wealthy individuals should be paying more taxes than they do currently.  This is what Buffett wrote:   "The mega-rich pay income taxes at a rate of 15 percent on most of their earnings but pay practically nothing in payroll taxes"  It's a different story for the middle class; typically, they fall into the 15 percent and 25 percent income tax brackets, and then are hit with heavy payroll taxes to boot."  What Buffett is saying is that the super wealthy have the advantage of paying only 15% in capital gains taxes.   Since most of their income comes from capital gains, Buffett feels that individuals similar to him in wealth should be paying more in taxes. He believes that anyone who earns $1 million or more per year should be paying more in taxes.

Earlier today, Danaher (DHR), the diversified technology manufacturer, announced that it would acquire Keithley Instruments (KEI)for a 70% premium.   Keithley's shares were up over 72% after the announcement trading from $12 a share to over $21. Prior to the announcement, shares of Keithley have already tripled from $4 to $12 this year.


<a href="finviz.com/chart.ashx?t=KEI&ty=c&...;>KEI Chart</a>

Keithley Instruments designs and manufactures precision electronic test and measurement systems such as DC/AC instruments, semiconductor test systems & software, and switch systems.  In addition to producing test and measurement devices, their acquiring company Danaher, produces motion systems, product identification products, hand tools, environmental & medical products. Danaher says that the acquisition will further their footprint in the test and measurement field.
Danaher's shares were trading down about $.30 to $41.15 midday.

<a href="finviz.com/chart.ashx?t=DHR&ty=c&...;>DHR Chart</a>


Disclosure: No positions

As May 2010 trading draws to a close, here are a few bright spots among the darkness of today's action.  These stocks had the highest percentage gains for the day:

1. CKX Inc. (CKXE) an entertainment company that holds the rights to Elvis Presley's name, image, likeness, and certain music & the rights to American Idol shows rose 23% today as they confirmed a takeover bid from a group led by Simon Fuller, the notorius creator of American Idol.

2. Roberts Realty Investors (RPI) a REIT that owns and operates multifamily residential properties in the U.S. enjoyed a 20% move higher today on no apparent news.






Disclosure: No positions