Diamonds and Dogs

8/19/09

Wednesday, August 19, 2009
Diamond
The retail sector is performing well after experiencing losses earlier in the week. Ann Taylor led the retail rally after an upgrade by UBS to a buy recommendation. UBS set a target price at $15 and the stock shot up almost 6% despite the Dow's dismal open. This retail rally is a great sign for the future of the market.

Dog
Alcoa Inc. (AA) suffered today, tumbling almost 5%, after a downgrade by Goldman early this morning. The aluminum giant was changed from a buy to neutral position by Goldman analysts, causing a fall that epitomized the action of most industrial stocks this morning.

Tuesday, August 18, 2009
Diamond
The wheels were turning and they were turning fast for American Axle and Manufacturing Holdings (AXL). The auto parts producer's shares more than doubled in value this afternoon, soaring almost 120%. AXL was able to finalize a deal with GM for $110 million and also obtained an extension on their credit line, both of which helped to boost the stock to a new high for the year.

Dog
Nothing was fun about Solarfun's (SOLF) performance today. In fact, their stock plummeted almost 12% despite posting a surprisingly impressive quarterly profit. The alternate energy provider reported disappointing news that pricing for their products will continue to descend, which led shares in the same direction.

Monday, August 17, 2009
Diamond
Health insurers managed quite an impressive rally today, despite a substantial drop in the broader market. The Obama administration's attempt to downplay a government health plan gave investors confidence in private health insurers. Aetna (AET) led the pack with a 5% rally today, bringing the stock to $30. The health insurers have moved lock in step with every comment out of the White House regarding healthcare reform. .

Dog
Rosetta Stone Inc. (RST) plunged today, dropping almost 30% following lowered guidance. The company has experienced a rough couple months after becoming public in the middle of April. The language-study software manufacturer reduced earnings guidance for not only the quarter, but the full year. The lowered guidance is due to rising costs associated to marketing than a drop in sales.

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.