2011 March

Kirby Corp Buys K-Sea for $335 Million

The acquisition of K-Sea Transportation (NYSE:KSP) by Kirby Corp (NYSE:KEX) sent shares of K-Sea Transportation skyward. Intraday trading brought KSP shares up over $1.50 (25%) on nearly 3.7 million shares and closed the day up $1.70 (26.28%). Kirby Corp shares rose $1.00 up a modest 1.8% to $56.33 by the close of the market. Kirby Corp also saw an intra day high of $60.00 a share and an intra day low of $55.12.

Kirby Corp, a Houston, TX based company, will also assume and refinance $265 million of KSP debt bringing the total value of the deal to $600 Million dollars. KSP shareholders will have the option to receive $8.15 in cash per common stock  or $4.075 in cash and 0.0734 shares of Kirby Corp common stock. This represents a 26% gain from where KSP common shares closed on Friday March 11, 2011.

Kirby Corp will be adding another 121 Vessels to its already impressive staple of 1149 vessels. K-Sea will operate as a subsidiary of Kirby Corp and will maintain K-Sea’s current management staff.

Warren Buffett’s Berkshire Hathaway Makes Big Acquisition

On the announcement of Berkshire Hathaway’s latest acquisition of Lubrizol(NYSE:LZ). Shares of Lubrizol rose $29.24 up over 27% by the close of the market on Monday. Berkshire Hathaway agreed to pay $135 per common share of Lubrizol stock and will assume nearly $700 million of accrued Lubrizol debt.

Lubrizol represents the kind of company that profiles well for Berkshire Hathaway CEO Warren Buffett. With over $725 million in earnings and profit margins of nearly 24%. Lubrizol meets or exceeds the criteria that Buffet has in place for Berkshire Hathaway acquisitions.

This is one of the largest acquisitions Berkshire Hathaway’s History and is sure to make investors in Lubrizol very happy. With the previously stated purchase point on $135 this marks an 18% increase over Lubrizol’s all-time market high of $114.59 which it attained in the last 6 months.

When the acquisition deal close sometimes in the third quarter Lubrizol will operate as a subsidiary of Berkshire Hathaway and will maintain its current management team and location of Wickliffe, Ohio.

Around the Market for Mar. 14

The market dipped a little bit Monday as stocks were impacted by the terrible tragedy unfolding from the earthquake and tsunami in Japan. Some of Japan’s ports were damaged causing global supply chain disruptions. Analysts are estimating the cost of this disaster to be over $170 billion. Let’s take a look at how some of the bigger U.S. stocks are doing.

General Electric Co (NYSE:GE) is trading down over 2% in after hours at $19.92. GE has combined nuclear ventures with Hitachi Ltd. Hitachi Ltd. (NYSE:HIT) is down over 15% trading just below $50.

Uranium ETFs also took a hit today with Global X Uranium ETF (NYSE:URA) trading down 17% at $15.76.

The largest foreign insurer in Japan, Aflac Inc. (NYSE:AFL) was also down today. AFL is down nearly 3% in after hours to $53.90. Some experts are predicting that the devastating natural disaster in Japan will cost the insurance industry as much as $35 billion, making it one of the most expensive disasters in history.

The only good news in the market today were a couple of buyouts.

Berkshire Hathaway whose Chairman is Warren Buffet, bought Lubrizol for $9 billion in cash.
You read more about this deal at this post.

Kirby Corp., a barge operator, agreed to buy out K-Sea Transportation for $33.5.3 million in cash and stock. This post details that deal.

Green Mountain Coffee Roasters and Starbucks Deal Send Both Stocks Up Today

Green Mountain Coffee Roasters (NASDAQ: GMCR) shares have soared up 38% in midday trading rising to over $60 with over 33 million shares traded to this point. Starbucks (NASDAQ: SBUX) is up 9% to over $37 a share with nearly 28 Million shares traded to this point. This phenomenal rise comes on the heels of an announcement of a much anticipated Starbucks Corp. and Green Mountain Coffee Roasters partnership agreement.

Starting this fall Starbucks corporation will begin producing Starbucks and Tazo tea brand single serving brewing portions(K-Cups) for the widely popular Keurig Single Cup Brewing system.  Green Mountains Keurig brewing system is among the most popular single serving brewing systems available on the market.

For Starbucks this marks another step for the retail giant whom already sells single serving instant coffee packets under its VIA brand. For Green Mountain the partnership allows the company to add one of the nations premier coffee retailers to its already highly successful Keurig single serving brew system.

About Starbucks Corporation
Starbucks Corporation purchases and roasts whole bean coffees. The company offers approximately 30 blends and single-origin premium arabica coffees. It includes Via instant coffee, Ethos water, Seattle’s Best, Torrefazione Italia Coffee,and Tazo teas, amongst a stable of highly popular barands.

About Green Mountain Coffee Roasters
Green Mountain Coffee Roasters is the producer of the Keurig single serving coffe and tea brewing system. The company provides cocoa, teas, and coffees in K-Cup portion packs, Keurig single-cup brewers, and other accessories.  Some popular brands such as Newmans Own Organics and Tully’s Coffee join Green Mountain coffee as staples under an ever expanding line of products.

A Look at the Markets for March 10

Ouch! The stock market is taking a hit in the afternoon hours today as the February federal budget deficit sets record. The deficit rose by $222.5 billion in February, making it the biggest one-month increase in history. Many economists are forecasting that this year’s deficit will be the biggest imbalance recorded. The Congressional  Budget Office is forecasting a $1.5 trillion gap this year, giving the U.S. the third straight year of $1 trillion-plus deficits. The Dow is down 187 points, the Nasdaq is down 41 points, and the S&P is down 19 points. All the major indices are down 1.5% on the day so far. Let’s take a look at what else is happening across the markets today.

Traders were shocked today when China reported a trade deficit for February. The country’s exports were down as businesses closed for the weeklong Lunar New Year holiday. An increase in imports of higher priced oil and other goods caused China’s deficit to increase to $7.3 billion.

Moody, the ratings agency, downgraded Spain’s debt today raising fears about the European debt crisis. This news also sent the dollar higher against the euro today with the EUR/USD currently trading down 0.0111 or 0.7983%.

And finally, energy companies were one of the hardest hit sectors as oil went down 3% causing Exxon Mobil Corp. (NYSE:XOM) to fall 3% and Chevron Corp. (NYSE:CVX) to fall a little over 3% so far today.

A glimmer of green in the sea of red today was Starbucks Corp. (NASDAQ:SBUX) rising 8% today after Green Mountain Coffee Roasters (NASDAQ:GMCR) agreed to distribute Starbucks coffee and teas for its single-serve Keurig brewing systems. You can read more about that deal here. Also Netflix, Inc. (NASDAQ:NFLX) was up 5% in afternoon trading.

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