Diamonds and Dogs
The energy sector is getting hit once again. Kinder Morgan (KMI) is the dog of the day down 8% to a new low on a debt downgrade from Moody's after Kinder Morgan increased their stake in Natural Gas Pipeline Company of America (NGPL), a high risk and distressed company. Obviously Moody's did not like the move with the debt downgrade. Currently Moody's rates Kinder Morgan at Baa3 which is the lowest investment grade they offer. If Moody's lowers their rating to Ba1 then Kinder Morgan's bonds will be considered junk status causing even more selling in the bonds and the stock. Not a good time to be an energy investor. Hopefully, we're getting closer to a bottom.
Yoohoo makes great chocolate milk, but that has nothing to do with today's diamond, Yahoo! (YHOO). Yahoo is surging up over 5% on news the company may restructure including selling their core internet business and possibly spinning off or selling their $30 billion stake in Alibaba (BABA) to maximize shareholder value. Year to date, Yahoo is down 30% while rival Google or Alphabet is up over 40% at new all-time highs.
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