It's Thursday, September 27th.

Welcome to Market Foolery.

I'm Chris Ellen joining me in studio today

for Motley Fool's stock advisor Joe Tennebruzzo

and from Fool.

Financial Adver Austin Smith.

Gentlemen, happy Thursday.

Happy Thursday to you.

We're going to wrap up the week with the full mailbag,

but there is one news item we have to hit,

and that is consolidation in an industry that I don't think we've ever talked about on market

foolery and that is of course the mattress industry.

Temperpedic announced it is buying Celie for about 230 million in cash and Austin I'm guessing that Wall Street likes

this deal because shares a temperpetic up more than 16% earlier today what

do you think?

Oh well I mean I think temperpetic definitely needed a rebound after what happened earlier this year.

Yeah, I mean, for context, it was about six months ago the stock was trading in the high 80s and now it's around 30. I mean I think kind of what's happened is when you

get a sleeper industry like this. Oh so bad it had to be done.

Temperpedic got really cheap earlier this year when they fell down and even after

this pop they're still trading for about 10 times earnings, about 8 times cash flow.

So it's actually a pretty cheap company, a reasonable balance sheet.

I wouldn't call it the healthiest in the world.

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