Eaton Corporation purchased Cooper Industries today and the CEO made a very positive comment about the U.S. housing market. Perhaps the bottom really is in, finally.
Cooper is a manufacturer of electrical components and tools, all different kinds of products you’d need if you’re going to build a house or remodel an existing house.
While the housing recovery probably wasn’t the main reason for the purchase, I’m sure it’s a big part of it. And, if you’re a long term investor, the more reasons you see for a housing bottom the more comfortable you’ll be buying stocks like U.S. Bank or Wells Fargo who will be making all the housing related loans.
The deal, Eaton’s largest, boosts the company’s ability to take advantage of a U.S. housing market that Chief Executive Officer Sandy Cutler has predicted may grow by 25 percent annually in the next couple of years. Jeffrey Sprague, a Vertical Research Partners analyst, suggested in September that Cooper was a good takeover target for Eaton. (Bloomberg)