Diamonds and Dogs
9/7/12Pandora Media Inc. (P)
Pandora opened its box and let evil out on its investors today, down 16.79% at $10.46. The internet radio company saw its shares drop after the Wall Street Journal released an article announcing that Apple was planning to license an online radio similar to Pandora. The Journal's Friday edition said Apple is pursuing such a service because it is trying to expand its dominance in online music. Pandora has several rivals already, including Spotify. Apple's control over the iPhone and iPad could let it emphasize its own service. Apple is planning to have an app that is preloaded on its devices that would connect to Apple's radio service. Investors are worried that a giant like Apple could be strong enough to finally close Pandora's box.
Cliffs Natural Resources Inc. (CLF)
Cliffs Natural climbed off the cliff to the top of the mountain today, up 14.49% at $39.91. The mining and natural resource company saw its shares jump higher after UBS analyst, Schneur Gershuni, had a positive outlook for mining companies. "The poor jobs report increases the odds of a new QE program and could help infrastructure spending overseas," Gershuni said. "That's good for mining and steel companies." Along with the positive outlook, the mining company got a boost in its labor negotiations. United Steelworkers of America officials said the union had agreed to work beyond its September 1st contract deadline and return to the bargaining table on October 8th. The contract covers 22,000 workers. Cliffs Natural is up $5.00 today with its trading volume spiking nearly 10 million shares above its three month average.
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