Diamonds and Dogs
The roller coaster ride continues. A majority of stocks are lower today, but the dog of the day goes to retailer, Dollar Tree (DLTR). Dollar Tree is down 7% following disappointing earnings. The company is in the midst of a merger with Family Dollar, but is blaming the shortfall on intense competition from mass retailers such as Wal-Mart Stores. Retail along with healthcare were the two sectors holding up in this correction, but not so much anymore.
Not many stocks in the green. SunEdison (SUNE) is one of the few diamonds up 6% by midday following news another hedge fund/private equity firm is buying into the stock. The first six months of the year were good to SunEdison rising over 50% as hedge fund managers like Leon Cooperman, David Einhorn, and others buy in, but they also got trapped in the stock as it fell 66% in the last month and a half. Today billionaire, Steve Cohen added his name to the shareholder list at SunEdison. Eventually these guys should be right.