Diamonds and Dogs
Diamond: Diamond Offshore Drilling (DO)
Our diamond for the day is subsequently Diamond Offshore Drilling, no pun intended. The drilling company is up 3.5% to $48.52 on a day where most markets are down. The surge experienced by Diamond Offshore Drilling as well as other energy companies was due to the recent turmoil in Iraq. The Middle East country is the number two oil producer in the world and they are under threat as an Islamic militant group took another city yesterday and they are continuing to move towards Baghdad. The uncertainty in the Middle East has forced oil prices to spike and Diamond Offshore Drilling's stock has risen as a result.
June 11th, 2014
Diamonds and Dogs:
Diamond: Bio Fuel Energy
On a day where the market was down and many companies experienced drops in value, Bio Fuel Energy Corporation experienced a surge up 36.8% to $7.90. The Alternative Energy Company's surge today was primarily due to acquisition of JBGL from Greenlight Capital. JBGL is a collection of real estate entities interested in developing land for residency, construction lending, and home building operations. This acquisition from Greenlight Capital in which Biofuel paid $275 million for JBGL common stock is expected to boost the confidence of investors in Biofuel for this coming fiscal quarter.
The Boeing Company (BA)
As all three major markets are down today, there seems to be many dogs in the stock market. One particular company that sticks out on this HUMP DAYYY is the Boeing Company. The multinational corporation that designs aircrafts and defense items saw their shares fall in pricing by 2.43% down to 133.92. The fall in Boeing share prices may be due to the Canadian investment bank, RBC Capital downgrading Boeing to sector perform and removing its buy rating. Another reason that Boeing shares are down more than 2.0% is the primary defeat of Republican House Majority Leader Eric Cantor. Eric Cantor's support for the Export-Import Bank would have lead to 10 million in Boeing's 2014 sales. Therefore with Cantor's loss in the primary this jeopardizes the reauthorization of the Export-Import Bank. Although Boeing is down today, it is still flying high above its 52 week low at 96.31.