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What: Shares of water heater manufacturer A.O. Smith
So what: This is a two-factor jump as Smith both reported blowout earnings in the second quarter and announced a $418 million buyout of privately held rival Lochinvar. The new lines of water boilers are expected to add $0.10 per share to Smith's earnings next year.
Now what: The company is focusing on water heating with laser-like concentration, including the pending sale of the unrelated electric motors division to Regal Beloit
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Fool contributor Anders Bylund holds no position in any of the companies discussed here. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is investors writing for investors.