Cameron to Acquire Natco Group in $780 Million All-Stock Deal

Oil and gas services company Cameron International ( CAM) said Monday that it will acquire fellow oil services outfit Natco Group ( NTG) in a $780 million all-stock deal.

Pursuant to the deal, Natco shareholders will receive 1.185 shares of Cameron common stock per share of Natco stock. Natco has about 20.3 million shares outstanding, which means that current Natco shareholders will gain approximately 10% ownership of Cameron's outstanding shares.

The board of directors for both companies have approved the acquisition, which is anticipated to close in the third quarter of this year.

Natco shares rose $4.62, or +15%, in morning trading Tuesday, while Cameron shares fell $1.76, or -5.4%.

Shares of CAM are off of 52-week high levels of $58. The stock has near-term technical support in the $25-$27 price area. If the shares can rebound from today's early drop, we see overhead resistance around the $36-$38 price levels. We do not currently rate this non-dividend paying stock, but we do follow the stock and the oil services space very closely.

Neither of the stocks mentioned in this article currently pay a dividend.

Morgan Stanley Announces $2.2 Billion Share Offering

In order to help pay back its TARP debt, financial services giant Morgan Stanley ( MS) said it will offer 80.2 million shares of common stock.

The New York City-based company expects the offering to net $2.2 billion in funds. It said it will issue around 80.2 million additional shares of its common stock, priced at $27.44 per share.

This price point reflects an 8.2% discount from the company's Monday closing price of $28.89.

Morgan said it plans to use the funds to help pay off its government TARP debt. The banking giant received $10 billion in federal funds during the credit crisis last year.

Exactly when the government will allow banks to pay off their TARP debt remains a mystery. Morgan said it hopes to be able to pay back the money by the end of June.

Morgan Stanley shares fell $1.07, or -3.6%, in Tuesday morning trading.

We removed shares of MS from our "recommended" list back on Aug. 12, when the stock was trading at $45.39. The company has a dividend yield of .90%, based on last night's closing stock price of $29.89.

The stock has technical support in the $22-$25 price area. If the shares can continue their recent ascent, we see the next level of overhead resistance around the $35 price mark. We would remain on the sidelines for now.

Morgan Stanley is not recommended at this time, holding a Dividend.com DARS Rating of 3.3 out of 5 stars.

Walgreen Says Same-Store Sales Rose 1% in May

Drug store chain Walgreen ( WAG) said Tuesday that May same-store sales rose 1%, helped by higher pharmacy sales.

The Deerfield, Ill.-based company said that overall same-store sales rose 1% last month. Same-store sales are considered a key indicator of a retailer's health, since they measure the performance of stores open at least one year.

Walgreen also said that total pharmacy rose 6.3% in May, with same-store pharmacy sales rising 1.5%. Overall, pharmacy sales represented about 65% of the company's total sales revenue.

Same-store prescriptions filled also rose 2.8% last month, while total monthly sales rose 6.1% from year-ago levels, to $5.37 billion.

The company reported that overall same-store sales for the current fiscal year-to-date are up 1.9%.

Walgreen shares rose 37 cents, or +1.2%, in morning trading Tuesday.

We have avoided shares of WAG since our early June coverage began, when the stock was trading at $35.53. The company has a 1.45% dividend yield, based on last night's closing stock price of $31.14.

The stock has technical support in the $26-$28 price area. If the shares can firm up, we see overhead resistance around the $33-$34 price levels. We would remain on the sidelines for now.

Walgreen is not recommended at this time, holding a Dividend.com DARS Rating of 3.2 out of 5 stars.

American Express Prices $500 Million Share Offering

Credit card giant American Express ( AXP) joined the share offering party Tuesday, announcing it will sell about $500 million of its shares.

The New York City-based company will price around 19.8 million shares of its common stock at $25.25 per share, which is less than a 1% discount from its Monday closing price of $25.99.

After the sale is completed, the company will garner around $500 million in funds.

American Express shares fell $1.41, or -5.5%, in late morning trading Tuesday.

We continue to avoid shares of AXP, as we have since our early June coverage began, when the stock was trading at $44.65. The company has a dividend yield of 2.77%, based on last night's closing stock price of $25.99.

The stock has technical support in the $17-$20 price area. If the shares can firm up, we see overhead resistance around the $30 price levels. We would remain on the sidelines for now.

American Express Company is not recommended at this time, holding a Dividend.com DARS Rating of 3.1 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks as well as a detailed explanation of our ratings system.

At the time of publication, the author had no positions in stocks mentioned, although positions may change at any time.

Tom Reese and Paul Rubillo are senior editors of Dividend.com. Visit Dividend.com for more dividend stock ratings, picks, news, and analysis for long-term and income-seeking investors.

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