This morning I am hearing more thought-provoking rumors than I have in ages. I don't really know what to do with them other than report the rumors of why some stocks are running -- it's unorthodox, but what else can you do?
First, don't be confused by Salesforce.com. That stock is running because of the amazing quarter it had, not because Oracle (ORCL) - Get Oracle Corporation Report or Microsoft (MSFT) - Get Microsoft Corporation (MSFT) Report want to buy it.
But that's not the case with Emerson Electric (EMR) - Get Emerson Electric Co. Report and Eaton (ETN) - Get Eaton Corp. Plc Report. Both are rumored to be the next targets of Trian Partners. Action Alerts PLUS owns Eaton, and we know that CEO Sandy Cutler is no friend of Nelson Peltz, the principal of Trian, having been lead director at DuPont (DD) - Get DuPont de Nemours, Inc. Report and point man in the proxy battle against Peltz joining the board. To me, it seems too spite-oriented and I discount the rumor; however, the stock is cheap and there could be a cash event later in the year.
Emerson's tougher. It's been doing quite poorly and I don't know what Trian could do to turn it around. But I didn't know what Trian could do with Ingersoll-Rand (IR) - Get Ingersoll-Rand Plc (IR) Report , and I underestimated their thoughtfulness and their clear-headed vision. Emerson's down a great deal, but there easily could be a shortfall once again. Know the risk; there could be big reward.
Finally, CVS Health (CVS) - Get CVS Health Corporation Report has ignited so much chatter with its Omnicare (OCR) bid that I think a consolidation is occurring in the health care cost-containers. Remember, there are many great ones and they aren't cheap -- but I wouldn't discount a thing!
Again, take it for what it's worth: I am describing the chatter I am hearing, not what actually may be occurring. It's not what I like to do, but I am not going to censor myself when I know what rumors are driving these stocks.
This article was originally published at 11:45 a.m. EDT, May 21, 2015, on Real Money.
At the time of publication, Jim Cramer's charitable trust Action Alerts PLUS, was long ETN.