Diamonds and Dogs
oh, what a rallyOh, what a rally!
Stocks are back in the black after popping nearly 40% from the lows. Economic numbers issued over the last two weeks have been very bad, but it is seen as improving. Maybe the more amazing thing would have been if the market hadn't rallied the way it did. With the unheard of stimulus of lower energy costs, historically low interest rates, and the government throwing $13 trillion (with a T) at the markets and the economy, stocks couldn't help but go up. For the short term, particularly as investors that left the market (or worse, were short) climb back in, stocks should continue on their merry-way. Long term, who knows?
Diamonds and Dogs
Friday, May 15th, 2009
DryShips (DRYS) rallied 12 percent to $6.84 as it reached an agreement on a $645 debt waiver. That news released the short-term financing pressure on the stock for now. A weak diamond, I know, as they are still down for the week, even with this move.
Life insurance companies can now access TARP funds and their tepid response took many of them lower. Prudential (PRU) fell $1.62 or about 4% to $37.75 as they are expected to say no to the government's generous offer to own them.
Thursday, May 14th, 2009
Jack in the Box (JACK) surprised investors as it sprang on the news that they would beat expectations for earnings. JACK closed at $23.80, after a sizzling $1.84 move up. JACK is in the middle of its 52 week range.
The premier mattress maker Sealy (ZZ, love that symbol) fell 8% as they continue to scramble for financing. ZZ, founded in 1984 and with 4,800 employees, has negative shareholder equity and is on a nightmarish liquidity death march.
Wednesday, May 13th, 2009
Dr. Pepper Snapple Group (DPS) rose 81 cents to $22.07 as they reported better earnings. DPS also markets 7UP, Sunkist, A&W, Canada Dry, Schweppes, Squirt, RC, Crush and Hawaiian Punch to name a few brands. DPS issued shares back in 2008.
The last several sessions have seen companies take this rally and go to the market and issue shares. For example, Protective Life of Alabama fell $2.74 per share as they announced a 12.5 million share offering.
Tuesday, May 12th, 2009
Pfizer was a diamond today as Drug Company stocks have been strong throughout earnings season and also with the Swine Flu scare pumping up sales of vaccines, etc. PFE rallied 78 cents to $14.93.
Buckle (BKE) the teen clothing retailer, was stripped of 6.55%.