You always want to keep track of how secondaries are doing as a way to measure health. Judging by today, you have real health because the two biggest ones, a $1.5 billion deal for Thermo Fisher (TMO) stock and the 5.52 million share offering of McCormick (MKC) are flying.
TMO placed its deal at $171 and even though the precision-instrument life science company's been strong all year, up 23%, it's clearly got big-time support down here.
In many ways, McCormick is the real shocker. We know many people pooh-poohed the company's $4.2 billion deal for Frank's RedHot and French's, but the buyers came out of the woodwork for this deal priced at $90 and it is zooming.
These kinds of deals really show the true colors of stocks.
These offerings are like Frank's -- red hot -- and it's a sign that these two stocks have tons of buyers lurking underneath as it appears that both deals were wildly oversubscribed.
I like 'em both even here. They are both consistent growers, even as big deals like this are new to McCormick. But TMO is a staple in the lab and McCormick is a staple in the home.