Diamonds and Dogs
8/14/09Diamonds and Dogs
Friday, August 14, 2009
Autodesk (ADSK) the software modeling conglomerate was one of the few stocks to close higher today, after reporting better-than-expected earnings. This Silicone Valley based company surged almost 5% today despite a downward trend in most other tech stocks, led by losses from semiconductor companies. Autodesk managed to report earnings of 24 cents per share, 5 cents higher than expected, thanking their 3D modeling software programs.
Boeing Co. (BA) crashed and burned at the open today after declaring a halt on production at facility in Italy. The airplane manufacturing mammoth began production of the state of the art 787 Dreamliner, but was forced to stop progress due to "wrinkles" in the fuselage. This news drove the stock down more than $2 or 4% today and has seemed to drag the market with it.
Thursday, August 13, 2009
Financials might be back, judging by the action of hedge fund manager John Paulson. Bank of America (BAC) was up more than 5% premarket and stayed up throughout the day after Paulson stated his plan to stay long on 168 million shares of the enormous commercial bank. The financials may be starting to gain some stability and survive without government aid.
Solar companies cannot seem to see the light as of recent. Today, another solar company, LDK Solar (LDK), plummeted down to $9 a share or more than 20% slump. The China based alternate energy firm cites a larger than expected inventory write down for the $217 million net loss this quarter. They seem to be following the trend of all foreign solar companies.
Wednesday, August 12, 2009
Commercial Vehicle Group (CVGI) was driven up almost 25% today by an upgrade by JP Morgan Chase. JPM also set a price target at seven times the current lows. Commercial Vehicle Group may be one of the many undervalued stocks at this time and could represent an excellent investment opportunity.
YRC Worldwide (YRCW), a transportation giant, could not keep on trucking today as their stock fell a quarter today, an 11% drop from the previous closing price. The trucking corporation was downgraded to a "sell" recommendation today by Stifel Niclaus, saying that the Teamster's agreement is not a legitimate long term solution to the problem.
Tuesday, August 11, 2009
Finally, we're starting to see some repurchasing in high volume. Tellabs Inc. (TLAB) announced their plan to buy back over $200 million of their common stock at a price of $5.90. This statement led the stock to a 25 cent or 4.24% rally today. Hopefully the trend of insider buying will continue and rallies will ensue.
Any company is rather fragile during a restructuring period. CIT Group (CIT) exemplified this theory today as they failed to file their quarterly report with this SEC. The commercial lender stated that they would be unable to meet the deadline without exposing themselves to bankruptcy. This action led CIT down almost 20% today and we will have to wait to see if they can remain afloat.