Addition by Subtraction

 | Sep 16, 2013 | 11:13 AM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:










Addition by subtraction strikes again.

This time it's Packaging Corp. of America (PKG) buying Boise (BZ), and Allegheny Technologies (ATI) dumping Tungsten (TUNG). These are both amazing deals.

First, Packaging Corp. shares should go up as we are getting a further takeout of capacity. It is "son of" International Paper (IP) buying Temple Inland, a brilliant deal that cause IP to rip through the $40s.

ATI's sale of the Tungsten division for $605 million to Kennametal (KMT) is also incredible because that was the pride of ATI. I remember when I recommended ATI as stock of the year six years ago because the price of Tungsten kept going higher and higher as the high-strength alloy was in huge demand. Now ATI is content to have the cash. It makes sense that it should go up because it shows that management is willing to sacrifice anything to get this stock going.

In the meantime, I believe Kennametal should be up much more than it is. It is a terrific deal for them, too.

These companies really get it. They want their shareholders to win.

It's a whole new era.

Columnist Conversations

My sense is that if yesterday's upmove was not the start of a vertical upside blow-off that is heading directl...
Oracle is today's top gainer in the S&P 500 following last night's Q2 earnings report. The stock op...
If AAPL is going to continue to rally....this cluster zone and prior swing high need to be cleared! This is t...
Yesterday and today was the classic case of watching realized vol. in the SPX and other indexes jump. The mark...



Columnist Tweets


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.