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Wall Street Strategies has been providing independent stock market research since 1991 to individual, retail and institutional clients through a balanced approach to investing and trading. Charles Payne, our founder and chief analyst, is routinely sought after for his stock market, political,... More
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  • Where is the Confidence By: Charles Payne 0 comments
    Jul 19, 2010 1:34 PM | about stocks: CYPB, ATAC, TKS
    The NAHB/Wells Fargo Housing Market Index came in below consensus and at its highest reading since April of last year, as the march in confidence continues to move backwards. This is the kind of report that free spenders may try to say underscores the importance of government intervention since the numbers have dropped post first-time homebuyers tax credits expiring. The thing is this report goes from zero to 100, and readings below 50 reflect an opinion of poor conditions for housing. On that note, the number peaked at 22 in May, which is still a million miles from 50. By the way, the last time this index came in positive was April 2006.

    It's all about confidence or lack thereof, and somehow something igniting that fighter instinct inside all of us...I think it happens with less government and a green light.
    Positive Signs

    I really like all the takeover news this morning. There weren't any blockbuster deals but this is a Merger Monday.

    Cyprus Bioscience (CYPB) has received a bid from Ramius, a New York fund that told the Cyprus board to hire a reputable investment banker. Considering the offer is 60% above Friday's closing price there is little doubt phones are ringing at smaller investment banking firms.

    ATC Tech (ATAC) is being acquired by Genco for $513.0 million in cash. The engineering and supply chain company's shareholders are getting a 43% premium to Friday's close.

    Tomkin PLC (TKS) is being bought for $4.38 billion cash by Onex, a private equity company based in Canada and the Canadian Pension Plan Investment Board. This is a huge deal for an eclectic maker of power transmissions, sensors, valves, air conditioners, bathtubs, and showers.

    Of course, the takeover news underscores the sore spots like the inability to get cash from traditional investment banking. I've written many times on how important it is we get some large high-profiled deals north of $20.0 billion.

    Rest of the Day

    I'm impressed with how the market climbed off of the canvass as there is no doubt deep-pocketed (usually synonymous with "smart") traders came in looking to buy.

    Disclosure: None
    Stocks: CYPB, ATAC, TKS
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