Acquisition Rumors Lift Commercial Metals Stock - Again (CMC, NUE)

Today, shares of Commercial Metals (NYSE: CMC) rose on rumors that the company is being pursued for acquisition by Nucor (NYSE: NUE). Shares of CMC have risen 8.06%, to 17.56.

The same thing happened two weeks ago, when Nucor and a Brazilian company were rumored to be in the hunt for CMC, a supplier of steel to the construction industry. Following the rise in stock, though, CMC retreated when the rumors petered out. Will the same thing happen this time around?

CMC has risen by over 82% over the past 52 weeks, but there are no solid indicators that the construction industry is firmly in a strong recovery or on solid ground in general. While some may say the acquisition would be good for both companies, there is the notion that acquisition rumors in the steel industry have been nothing but vapor over the past three months.

I suspect that without solid evidence, this rumor is also a piece of vapor. I wouldn't be surprised if some dealing in Nucor stock have made a lot of money lately, but that is another issue for another day. I wouldn't take the CMC bait this time around.