Diamonds and Dogs
Valeant Pharmaceuticals (VRX) is the dog of the day down 15% and down 38% in the last two months to a 7 month low. Hilary Clinton got the biotech sector heading lower after making statements she won't as President allow biotech companies to continue to charge these high rates for drugs. Today Congress got involved with Democratic policymakers calling for the company to be issued with a subpoena to hand over documents relating to "massive price hikes". Not a good week to be a biotech stock.
Cal-Maine Foods, stock symbol (CALM) is anything but calm today. The stock is cracking under pressure down 11% after the egg supplier reported mixed fiscal-first-quarter 2016 results. The company is blaming the disappointing earnings on increased costs for purchasing eggs, packaging and security measures to stop future bird flu outbreak. The good news is the stock is still up nearly 30% year to date and regardless of the company's bottom-line shortfall, Cal-Maine is still poised to benefit from favorable demand trends and consumers' ongoing preference for higher-priced specialty eggs