Today Whirlpool made an offer to buy Maytag (NYSE: MYG) for $2.3 billion. Essentially the deal is for $1.37 billion in cash and stock plus assumption of $969 million in Maytag debt. The price effectively works out to $17 a share for MYG.

At this Friday's close of $15.45, the MYG market capitalization is at $1.23 billion, so the Whirlpool proposal represents a premium of just over 10 pct to current market. MYG will likely rise sharply this morning, and WHR come off. That's what happens when take-over deals are announced.

But do you remember a couple months ago " Friday April 22 to be precise -- when I wrote up MYG and WHR, and the small tools and household appliances industry? Loyal readers remember me saying that "Maytag? Mayday! Mayday!" was the script CNBC's Bob Pisani shouted at you from the floor of the New York Stock Exchange that day.

That's what often happens before deals are announced.

Here's what I wrote.

Then a day later I wrote to you (April 23) in my Week #16 in Review that you should be listening to me and not the Pied Pipers (Cramer and Pisani of CNBC), who were leading you to a world of hurt.

"Pay the rat catcher" as I said at the time. I then gave you a recommendation on Maytag (at $9.69), and made fun of Pisani's smart-alec "Mayday! Mayday!" on-air comment.

Then in the Week #20 in Review I reviewed my three-week (i.e., 15 trading session) performance in GM and MYG, again making fun of Cramer and Pisani. Actually I called it more sinister and said the Gnomes were involved. But, I leave that to your imagination.

It pays to listen to people who have been around these people and seen how they operate.

You may recall that my last boat was named "Dream Merchant" " which I had when I was on the sell-side. Now that I'm helping traders on the buy side, my next boat might be called "The Rat Catcher".

:-)

But this article is not about me; you might want to review the financial summaries and data for Whirlpool Corporation to see why it makes my Cara Global Best 100 Companies list.

Whirlpool Corporation (NYSE: WHR) is a favorite of mine, not because of the stock performance, but because it is so well managed.

For the industry itself, here is a look at the comparative fundamentals. You will see that WHR has a PE just north of 12, and so has room for expansion.

Performance wise, the WHR stock has not done much this year-to-date, rising just over 1 pct. The whole industry has not been spectacular.

After the stock comes off this morning, write put options on WHR. You might even wish to consider buying the stock after the post-announcement pull-back.

I would the latter except that I think the broad market is headed lower soon. But, if WHR is actually "put" to me at a lower price, I wouldn't mind at all. And if it goes up in price from the point I wrote the put option, I get to keep the premium at no cost if, as and when it expires worthless.

Have a good day.