Textron Up On Takeover Speculation

Everyone's favorite Cessna maker which recently was plumbing all time stock price lows after it was made clear that no corporate CEO will ever be allowed to buy a private jet ever again, was up a whopping 10% today on takeover speculation, to $8.00. This is likely not much of a consolation to longs, as TXT was trading north of $60 a year ago. Bloomberg quotes reputable sources such as Michael Nasto, senior trader at U.S. Global Investors who wrote in an e-mail "We are hearing the stock is up on takeover rumors." Ah, the good old days back in 2006/07 of rumor mongering in acquisitions... Been a while since we have seen that. Jon Najarian feeds to the rumor stating Lockheed Martin may make a bid.

Why not throw any company in the aerospace sector as a potential bidder as well? Oh yeah, that little thorn on the side known as Textron Financial. Good luck to any acquiror in passing Textron Financial as too big to fail ala GECC. Textron still has the privilege of being a one of the widest names in the IG12 index.