Diamonds and Dogs
12/13/12Basic Energy Services Inc. (BAS)
Basic Energy is struggling today, down 7.35% at $10.33. The oil and natural gas drilling company saw its shares drop after releasing operating data for November. Basic's well servicing rig count remained unchanged at 431 rigs. However, well servicing rig hours for the month were 64,400 producing a rig utilization rate of 62%, compared to 72% in both October 2012 and November 2011. Furthermore, Drilling rig days for the month were 272 producing a rig utilization of 76%, compared to 85% and 98% in October 2012 and November 2011, respectively. In short, production seems to be slowing for Basic Energy and investors are taking notice. The company is still trading above its 52-week low but a few more months of slowing production will push the company down further.
Boston Beer Co. Inc. (SAM)
Boston Beer Co. investors will be having a celebratory beer today, after shares jumped 15.15% to $131.54. The brewing company (well known for its Sam Adams brand) saw shares buzz upward after management changed guidance for the year. Management said that it expected 2012 earnings to be between $4.30 and $4.60 per share. This range is up significantly from the company's earlier view of $3.80 to $4.20. Furthermore, analysts had expected earnings of $4.34 per share. Boston Beer also said it expects the amount of beer sold, to grow 10% to 15% next year, up from an earlier forecast of high single digits. Boston Beer set a new 52-week high today, sailing past the previous high of $128.07.
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.