Diamonds and Dogs
Diamond Offshore (DO) is actually a diamond today. The stock is up 4% today, but down 50% in the last year due to lower oil prices. The offshore drillers have been hit hard in the last year due to their high costs compared to fracking drillers on land. If supply-and-demand picture for crude finally starts balancing out more favorably for producers, Diamond Offshore could continue to rebound.
Investors taking profits at Yum China (YUMC). After a 60% run up, Yum China is down 11% following disappointing earnings. Earnings were hurt by rising costs and slower sales at Pizza Hut. Revenues rose only 0.4% year over year to $1.59 billion. Long term story is still in tack. Yum China opened 90 new restaurants and remodeled another 197 in the last quarter, with plenty more locations to come.