Crocs and Disney Rule the Dow's 51st Record of 2013
1. Disney pops up to all-time high
It didn't take Tinkerbell to sprinkle some serious magic on this stock. Shares of Walt Disney popped 2.5% to an all-time high Monday after investment firm Guggenheim upgraded its projections for the stock price in 2014. Well played, Walt.
Do Crocs go well with a suit? executives at New York's Blackstone think so. The high-powered private-equity firm invested $200 million into Colorado-based in the form of preferred shares. At the same time, Crocs' CEO is retiring, and the stock ballooned 21% Monday.
Crocs is going Wall Street. The company that became famous for its foam go-anywhere clogs was popular only with weird Tim Tebow types. That business was limited. Now they're expanding to make clothes and even office shoes. The stock was down 40% in the past 18 months, though. This cash injection from Blackstone will be used to buy back shares to increase the value of each stock out there. They're losing their CEO, but they're getting some new big shots on the board of directors.
At first, Blackstone's shares will be like bonds, returning 6% dividends guaranteed every year. But then there's the kicker -- if the stock price rises above $29, they can covert to regular stock shares. Blackstone also gets two board-member seats, since it's now a 13% owner of Crocs. Blackstone knows how to make paper look sexy ... even in Crocs.
3. Pending-home sales nudge up
According to the National Association of Realtors, the number of home-hungry Americans who inked contracts for houses last month inched up by 0.2%, just short of expectations. These pending-home sales, along with other housing data, have had a pretty stellar year already.
- Consumer confidence survey
The article Crocs and Disney Rule the Dow's 51st Record of 2013 originally appeared on Fool.com.Fool contributors Jack Kramer and Nick Martell have no position in any stocks mentioned.The Motley Fool recommends OpenTable and Walt Disney and owns shares of Crocs and Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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