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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

12/2/15

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.

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.