"You know what the news is-- in a minute, you're going to hear the rest of the story"- Paul Harvey
Ever since Warren Buffet helped Mars finance the purchase of Wrigley's, the takeover hawks began speculating that Anheuser-Busch (BUD) or Hershey (HSY) may be next. All I have got to say is- not so fast.
Mr. Buffett does have a 2.7% position in BUD, but the insiders are painting a more gloomy picture. One would assume an insider somewhere within the walls of BUD would know something if the rumors were true. Using an old Buffett analogy, "with a million dollars and the best insider information in the world, a guy could go broke in a year".
Here is what the insiders at BUD have been doing lately, and it certainly doesn't look like the company will be bought out anytime soon.
On the other hand, Hershey (HSY) looks to be an interesting stock investment without all the takeover buzz. HSY is attempting to cut costs by moving one of their plants from Oakdale, California to Mexico.
This move will eliminate about 600 US jobs, save the company money, and boost profits.
No Inflation?
The Markets
Today, Cisco (CSCO) announced earnings that beat expectations, but gave 4Q revenue guidance that was less than analysts had expected.
The President of the Kansas City Fed said inflationary pressures might force the central bank to hike interest rates, and these comments were taken as a sign that Fed may be at the end of its rate cut cycle.
The National Association of Realtors reported that pending home sales fell 1% in the first quarter, versus February's reading -1.9%. making it the second straight monthly drop.
The Energy Information Administration (EIA) announced that crude oil inventories increased much more than analysts had expected. Crude oil inventories rose to 325.6 million barrels, gasoline inventories increased by 800,000 barrels, but your still getting screwed at the pumps.
Crude is now trading at $123.59/bbl, up +$1.75
