Diamonds and Dogs

July 20, 2009

July 20, 2009

Diamond
Human Genome Sciences
HGSI

HGSI shares have ski rocketed over 200% on a massive volume burst. This morning, Human Genome Sciences announced a success of their Benlysta drug in the treatment of lupus. A late phase resulted in 57.6% of the patients taking a high dose of the new drug saw improvements in their symptoms. Consumer and investor confidences are still high and showing no doubts even though U.S. regulators are issuing another study. Also, the news on this new lupus drug is rallying the Cancer Stocks Index. Human Genome stocks are up $6.44 or 194% and was last traded at $9.76

Dog
Sanderson Farms and Tyson Foods Inc
SAFM and TSN

It has not been a good day for chicken farmers, especially Sanderson Farms and Tyson Foods. Both companies have been downgraded by BMO Capital Markets because it is being said that the potential for further improvements in margin for chicken producers is on the fence. According to the brokers, the chicken demand has weakened and the hot weather in the south has been deemed more of a problem than expected. SAFM is down $3.67 or 8.035 to $42.03 a share. Tyson has dropped $1.17 or 9.26% to $11.47 a share.


July 17, 2009

Diamond
IBM

IBM and several other big names have kicked it up in their second quarter earnings. Its earnings went beyond any analysts' profit estimates raising its 2009 profit target as a result of a strong margin performance. The reported earnings of $2.32 a share was up from last years $1.97 and an estimated $2.02. IBM was able to report 17.8% per-share earnings despite a 13.3% drop in revenue. IBM's share rose $4.78 or 4.32% and price up to 115.42.







Dog
Callaway
ELY

Callaway Golf shares dropped after the golf equipment maker cut its profit guidance for the rest of the year. Analysts suggest that Callaway's heavy promotions and tight inventory creates a too great of pressure on performance through the end of the year. Callaway announced that they no longer expect earnings for the second half of the year to outperform last year. This will result in a 15 to 17 percent drop in sales for the full year. Shares fell $0.46 or 8% to $5.19.


July 16, 2009

Diamond
Mosaic Co.
MOS

North American potash inventories are up 152,000 tonnes, which is 115% higher than the prior 5-yr average. Mosaic and other potash inventories have raised steadily through 2009, despite major production cuts. A Brazilian mining giant, Vale, is interested in buying potash and fertilizer from Mosaic, which in turn has the potential to influence other investors in Brazil and neighboring countries. Reports show that Vale is contemplating with a $25 billion deal with Mosaic in the US. Its stock rose more that 12% and was closed at $49.98 a share, up from $44.55.

Dog
Nokia
NOK

Nokia is continually being troubled by the superior competition in their market, falling behind leaders such as Apple. Nokia has blamed the weak global economies but it is known that just no one wants their products. In contrast, Apple cannot keep their shelves stocked. Reports of competition and a waning demand for their products makes Nokia today's dog. Its stock was down $0.40 or 2.99% to $12.99 a share.


July 15, 2009

Diamond
Intel
INTC

Intel is a diamond this week because of the tremendous earnings delivered Tuesday night after the bell. Intel stunned analysts' expectations with the report of 18 cents a share on revenues of $8 billion unlike the estimated 8 cents a share on $7.28 billion. With the rising popularity of Acer's Timeline 3180 laptop, this is being closely compared to Lenovo's ThinkPad but $900 less. Both laptops operate on Intel's Core 2 Duo processors.

Dog
JB Hunt
JBHT

Trucking companies have been struggling with the falling prices of oil, especially J.B. Hunt Transport Services. With the recent prices of oil, it has been deemed more sensible to ship cargo via railroads and trains, instead of trucking. J.B. Hunt's shares have dropped because of the shareholders' reactions to the second-quarter profit fall, which were more than half Wall Street's expectations. J.B. Hunt announced on Tuesday afternoon that customer bids submitted earlier this year for truck shipping were particularly lower than usual, which greatly affected their revenue. It stock lost $2.58 or 8.7% to $27.04.

July 14, 2009

Diamond
CSX Corp.
CSX

The falling oil prices have benefited the railroad operator CSX; because many are looking to ship cargo via railroads to save money from other forms of transportation that require the use of oil. In a recent report, CSX is beginning to develop future plans of bringing back employees and to begin using rail cars when the economy begins to pick up. CSX has been in the news recently because they have cut costs, made hard decisions, and have made themselves in a competitive in an increasingly competitive market.



Dog
Dell

Dell announced on Monday that their profit margins would suffer a decline in the second quarter. The high competition in the industry is affecting Dell, even though it is the world's No. 2 PC maker. Society has shifted to cheaper computers which have comparable capabilities as the more expensive ones. Intel now has processors in laptops that are hundreds of dollars less than the cost of a traditional Dell laptop. Dell has now begun to offer discounts to bring in more customers and to compete with lower-priced products.

Monday July 13, 2009
Diamond
GS
Goldman Sachs
The market rebounded on Monday due to the influence of Goldman Sachs impressive quarter earnings. Goldman executives sold $691 million in stock between the months of September 2008 and early May 2009 following the collapse of their competitor Leham Brothers. Analysts are projecting earnings to increase as GS stock continues to soar.
Dog
CIT
CIT Group Inc.
CIT scrambles to survive during Monday's trade talk, as the crisis at CIT worsened. Investors and customers are very nervous and fearing bankruptcy. Many analysts concluded that a collapse of CIT, who has 1 million clients, would be a devastating blow to the economy. Many people are concerned that it would have the same results as Bear Sterns and Leham Brothers did on the market. Its shares depleted significantly $11.76 per cent after a $17.7 per cent drop on Friday. Also bonds sales tumbled and were traded at $0.77 cents on the dollar.

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Diamonds and Dogs market commentary is a journal of daily observations on anything that happens to be of interest to our author. Obviously, our primary focus is the stock market and world economic events, but for this page we have no defined topics. We want this page to be dedicated to the interests, concerns, and possibly to the financial gain of our clients and friends. All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.