Diamonds and Dogs
Energy stocks rallying into the quarter end. Energy and oil stocks are performing well after OPEC decided to raise production after restrictions were put on Iraq and Venezuela production declines. The Permian basin oil stocks, EOG Resources (EOG) and Pioneer Natural Resources (PXD) are both up 3% today. Societe Generale upgraded EOG Resources to a Buy from Hold today.
Conagra (CAG) gets Chilly reception to $8.1 billion frozen-food deal for Pinnacle Foods. Conagra is down 7% after acquiring such names as Birds Eye, Van de Kamp's and the Gardein line of vegetarian products. Investors seem to be concerned that Conagra plans to issue shares to help pay for the acquisition. Shareholders don't like to get diluted. Paying with stock is an admission that their stock price is rich. Longer term the deal makes a lot of sense.