November 21, 2008

November 21, 2008

Diamonds and Dogs

Diamonds
A brutal week finally comes to a close. Stocks closed at 11 year lows during the week, down about 15%. Friday's diamond was JM Smucker (SJM) rose almost 7% on strong earnings news, proving that business is still being done around the world. SJM had earnings of 94 cents per share as the stock is trading above $40. Revenues were up 19%, helped in part by recent acquisitions like Carnation, Knott's Berry Farm, and Folgers, which they purchased from P&G. Maybe the stock is up because in this recession, we'll all be eating PB&J instead of steak.

Dogs
I hate to kick a dog while it is down, but 2008 dog-of-the year candidate, Citigroup (C) fell hard today, going below $4 per share at several points. C is now down over 80%, this year alone. Amazingly, C has raised over $75 billion this year, including $25 billion from the US Government, and they have less than nothing to show for it. Where is Sandy Weil? You can bank on this, something will happen to this stock, mostly bad, in the not so distant future. CEO Vickram Pandit must feel like a turkey before Thanksgiving right now.

Thursday, November 20th, 2008

Diamonds
Gymboree (GYMB), the children's store, rose today as the company reported a solid quarter, as they announced a profit of $30.9 million. This number beat estimates easily and the stock closed at $19.31, up $2.83 for the day. The stock has still been cut in half for the year, but we will take a diamond where we can get one. For the record, the markets closed on their lows, in one of the most dismal days in market history.

Dogs
Take your pick, less than 200 stocks were higher on the NYSE today. Insurance companies appear to be prepping themselves for a bail-out as the group was hammered again today. Hartford Financial Services (HIG) fell $1.31 or 19% to $5.57. Unfortunately, the insurance stocks represent a black hole in terms of exposure.

Wednesday, November 19th, 2008

Diamonds
Up or down, let's have a beer. Molson Coors (TAP) rose 73 cents to $43.76 to be a shinning star for the day. It now looks like Peter Coors will be the new CEO succeeding Eric Molson. Talk about keeping it in the family, on both counts.

Dogs
La-Z-Boy (LZB), an American male tradition, fell hard today as furniture companies continue to be staggered by this recession. LZB fell 36% to $3.16 as they widened their quarterly loss to $1.04 per share. Estimates were for them to come in even. Couch that idea.

Tuesday, November 18th, 2008

Diamonds
Hewlett-Packard (HP) rallied as, believe it or not, they pre-reported better earnings. HP rose $4.25 to $33.59 on the news that fiscal 2009 earnings will be higher than expected. Go figure. But it does help us remember that good companies are good companies and that there are always opportunities in the market.

Dogs
General Motors (GM) went to Washington, along with Ford and Chrysler, to plead or beg their case for money. GM is trading at $3.09 and on its way to zero. Even though they all flew their private jets into Washington, they all appeared serious about cost cutting. I think the Edsel has already left the dealership on this one.

Monday, November, 17th, 2008

Diamonds
Green Mountain Coffee (GMCR) was green today as the diamond roasted short sellers up $1.69 to $30.94 after they reported strong results on Friday. GMCR is in position to prosper based on expected sales of their single cup brewer Keurig. GMCR is worth taking a look at.

Dogs
Walter Disney would unfreeze his head and come out of permanent retirement is he saw the price of his stock in 2008. Disney (DIS) fell $1.14 to close the session at $19.74. As advertisers head for the hills, and the recession looms, DIS is square in the target of sellers.