Diamonds and Dogs


Welcome to the inner wall with today's diamond, Outerwall (OUTR). The owner of Coinstar and Redbox is up 7% after the company announced they would explore their strategic options to boost shareholder value. So far so good. Outerwall is also hiking their quarterly dividend by 100% or a double boosting the yield to 7%. Great income and potential for more capital appreciation, sounds like great news for shareholders.

Going from bad to worse. Valeant (VRX) has had some tough days, but today the stock is dropping 50% on real concerns of debt default risk. The Canadian drug maker started the day by slashing their 2016 sales and earnings outlook. With a $30 billion debt load thanks to a string of acquisitions, the company is now looking to sell some non-core assets to prevent default risk. One of Valeant's largest shareholders, Bill Ackman of Pershing Square lost about $700 million today and over a billion in the last year. Valeant also led the health sector lower today, now the worst performing sector for the year.

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.