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Leigh Baldwin & Co.

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

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Diamonds and Dogs

oh, what a rally

Oh, 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

Diamonds
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.

Dogs
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

Diamonds
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.

Dogs
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

Diamonds
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.

Dogs
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

Diamonds
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.

Dogs
Buckle (BKE) the teen clothing retailer, was stripped of 6.55%.
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.