Check the background of this firm on FINRA's BrokerCheck.

Leigh Baldwin & Co.

112 Albany Street, Cazenovia, NY 13035 | Phone: (315) 655-2964 Toll Free: 1-800-659-8044

Check the background of this firm on FINRA's BrokerCheck.

Diamonds and Dogs

3/5/15

Shareholders of Joy Global (JOY) aren't so joyful today with their stock down 5% to levels not seen since September of 2009. Joy Global reported disappointing earnings this morning missing earnings estimates by a wide margin as sales fell 16% year over year. Even worse the company lowered guidance due to weakening global demand for its mining equipment. The lower commodity prices have reduced cash flow with Joy Global's customers which in turn has caused capital expenditures reductions and delays for their equipment. Not good news for Joy Global or any company that relies on commodity prices for the business.

 

Pharmacyclics (PCYC) is the diamond of the day up 10% to $254 after agreeing to be bought out by AbbVie for $21 billion. AbbVie predicts that Pharmacyclics' Imbruvica drug, which is used to treat certain blood cancers, will achieve peak sales of $7billion, and will boost earnings by 60 cents a share by 2017.   A growing trend among the major pharmaceutical companies is to buy out other drug companies instead of building up your own drug pipelines. Almost $70billion of mergers and acquisitions have been announced in pharma and biotech so far this year, according to Thomson Reuters, more than double the level of activity seen by the same point in 2014 and the strongest start to a year in over a decade. It's a good time to be in biotech.

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.