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Current DateTime: 11:48:06 25 Nov 2009
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3 Companies That Could Be Ripe For The Picking
Published: Wednesday, 4 Nov 2009 | 5:39 PM ET
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By: Lee Brodie
Web Editor

As things stand now, it appears November could be a big month for M&A.

Of course Warren Buffett’s acquisition of BNI [BNI  Loading...      ()   ] is the most high profile deal inked this month, but did you know a total of 41 deals have already been announced.

They include a deal struck by Stanley Works [SWK  Loading...      ()   ] to buy rival Black & Decker [BDK  Loading...      ()   ] as well as plans announced by Peets' Coffee [PEET  Loading...      ()   ] to acquire Diedrich Coffee.

In fact, the value of the November deals – at 41.5 billion -- has already surpassed the total for October which was $29.8 billion.

Considering November is off to a strong start – which firms should be on your radar? We asked Gary Kaminsky, former Neuberger Berman managing director.

Kaminsky's Shopping List

Ecolab [ECL  Loading...      ()   ]
Clorox [CLX  Loading...      ()   ]
Church & Dwight [CHD  Loading...      ()   ]

Kaminsky's Rationale

The message I took away from Stanley / Black & Decker deal is two fold: it’s affirmation that the worst is over or they wouldn’t have done the deal. And it’s also affirmation that the recovery will be a slow recovery. These two companies are coming together not just for cost savings but to have more power attracting a weak consumer.

So going forward, I asked myself where there may be a similar strategic alliance. Because I think there will probably be pricing pressure in the space, you could see the same kind of merger in consumer goods.

As a result I think the names listed above could either get together or they could be acquired by P&G [PG  Loading...      ()   ] or Colgate [CL  Loading...      ()   ].

Out of that list, I like CHD, adds Guy Adami.


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Trader disclosure: On November 4th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Najarian Owns (CSCO), Is Short (CSCO) Calls; Najarian Owns (GE) Calls; Najarian Owns (RIMM) Call Spread; Najarian Owns (UUP) Calls; Najarian Owns (YHOO), (YHOO) Puts; Najarian Owns (TXN); Terranova Owns (GS), (RIMM), (CAM), (MA), (OIH); Terranova Owns December Gold Futures; Seygem Asset Management Owns (BSBR)

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