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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

10/23/15

Tech is back! Better than expected earnings from Google or Alphabet, Amazon, and Microsoft sent the Nasdaq Composite up 2% for the day and up 6% year to date. It was back to the future week for Microsoft (MSFT) soaring 10% to highs not seen since 2000 or 15 years ago. That was a heck of a tech bubble. Microsoft's better than expected earnings were due to strong demand for products like the new Windows 10, Office 365 and cloud computing, Azure. Marty McFly would be impressed with Microsoft's results.

Sketchers isn't doing as well as Nike. Today's dog, Sketcher's (SKX) the second largest US sneeaker company, dropped 31% following record third quarter sales. While sales and earnings came in at record levels, the numbers and growth rate missed estimates by a wide margin verse recent quarters, suggesting that management's strategic shift into low-priced sport shoes may not be sustainable over the long run. However, management didn't lower estimates and even suggested there may be room for upside guidance in 2016. If Management is right, the 31% drop in the stock today could be a buying opportunity.

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.