Diamonds and Dogs

JUNE 19, 2012

Idenix Pharmaceuticals Inc. (IDIX)

Atop the leader board among gainers for June 20th, Idenix Pharmaceuticals Inc., up from $9.37 to $10.70 per share, posted a daily gain of nearly 15%. An early breakout in 2012, Idenix had since traded back down to sub $9 per share levels, moving back towards its current $10.88 price as the market prepares to open after this most recent pop. A pharmaceutical company engaged in the discovery and development of drugs for the treatment of human viral and infectious diseases, the most recent announcement of a positive trial for a new hepatitis C drug is responsible for this 15% daily gain. In a market that is expected to grow 15 billion by 2019, it is no surprise that news of this nature would boost per share prices to this degree.

Procter & Gamble Co. (PG)

Procter & Gamble ended the day down 2.93% at $60.39 after reaching a daily low of $59.78 just after the market opened on Wednesday. Procter & Gamble lowered its Q4 earnings and sales estimates because of unfavorable foreign markets, slow growth in developed markets, and slowing growth in China. This is the second cut Procter & Gamble has made in the past three months. Procter & Gamble shows warning signs for the complications of decreasing global economic growth as well as expanding outside of the United States. The world's largest consumer products company said it expects Q4 earnings of 75 cents to 79 cents a share instead of its previous estimate of 79 cents to 85 cents. On top of that, revenue is expected to decrease 1% to 2% instead of rise by 1% to 2% as previously predicted. Procter & Gamble hit its 52-week high earlier this year in March at $67.95. It now sits on a thin cushion just above it's 52-week low of $57.56. Procter & Gamble may very well be a canary in the coal mine.

June 19, 2012

J.C. Penney Company, Inc. (JCP)

J.C. Penney did not fare well Tuesday as it ended the day down 8.5 percent at $22.25. This occurred after the announcement that their President and former Target executive Michael Francis, who was brought in to help redefine the company's brand, was leaving. Francis was responsible for all of the company's merchandising, marketing, as well as product development. He may very well be taking the blame for Penney's recent marketing mistakes. J.C. Penney had the worst loss of the day when compared to other S&P 500 stocks and is currently lingering just above its 52-week low of $21.57.

Groupon, Inc. (GRPN)

Overall, the technology sector had a positive day and one of the strongest leaders was Groupon, Inc., which jumped 10.8 percent and ended the day at $10.93. Groupon is a deal of the day website that offers discounted deals usable at certain local and national companies in your local area. Morgan Stanley praised Groupon and upgraded it from "equal weight" to "overweight" which caused the stock to jump as much as 13 percent throughout the day. Morgan Stanley said Groupon is progressively bettering their ability to customize and target deals while cutting marketing costs by 50 percent, ultimately translating to increased revenues. Groupon is a must watch as it perfects its efficiency in the technology market.

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