Diamonds and Dogs
Airlines are on fire, literally. A Jetlbue plane today out of Syracuse NY had to make an emergency landing due to smoke and a possible small fire on the plane. No one was hurt, but the airline stocks were on fire rising over 3% on strong September traffic numbers and lower oil prices. The airlines are one of the main beneficiaries from the drop in crude oil over the last year. The stocks have been in a trading range since May, but may be ready to break out following third quarter earnings in the coming weeks. The companies have been buying back their stock in large amounts. Rumors of American Airlines buying back 8% of their outstanding float in just in the last quarters should boost earnings dramatically. Time will tell.
Good news for EMC doesn't look like good news for VMware (VMW). EMC agreed to be bought by Dell over the weekend for $67 billion. But in the deal, the shares of VMware owned by EMC may get spun off into a tracking stock. If this happens, half of VMware's outstanding shares will be in the hands of individual investors thereby increasing the float of the stock and possible downward pressure if these investors decide to book their profits. The uncertainty has current VMware shareholders heading to the exits. Can't blame them.
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.