Diamonds and Dogs
Diamond Offshore (DO) is the diamond today. The oils have underperformed for a while including October when the major averages jumped 8% to 9%, but today is a new month. The energy sector is the second best performer with Diamond Offshore up 11% following much better than expected earnings. Diamond Offshore gets credit for managing the downturn relatively well keeping its newer rigs working while removing some of its older ones from the market. The oil sector is not out of the woods yet, but today was a good day.
Credit Card companies have seen better days. Visa (V) was the worst performing Dow component today sliding 3.5% following disappointing earnings and an announced buyout of Visa Europe for $23 billion. The price tag took investors by surprise, a hefty price to pay for the European division. The earnings were actually good with profits up 41%, but with a stock trading for 25 times next year's earnings, the stock is not cheap.
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.