Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Thursday, June 30, 2011

Article Excerpt

PLEASE NOTE: Our next Hotline will go out on Friday, July 8, 2011. STANLEY BLACK & DECKER INC., $72.05, New York symbol SWK, has agreed to buy Sweden’s Niscayah Group AB. Niscayah designs and installs security systems, including surveillance cameras and fire alarms, for a wide variety of businesses. This is a big purchase for Stanley, which will pay $1.2 billion for Niscayah, including assumed debt. That’s 94% more than the $619.3 million, or $4.12 a share, that Stanley earned in 2010. The company holds cash of $1.9 billion, so it can easily pay for this purchase without having to sell shares, which would dilute the ownership of existing shareholders. Stanley’s all-cash offer tops an all-stock bid for Niscayah from a rival firm in Sweden. Stanley already owns 5.8% of Niscayah, and holders of 19.5% of Niscayah’s shares have accepted Stanley’s offer. Stanley hopes to complete the purchase in the next few months. The company feels it can cut its annual costs by $80…