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Leigh Baldwin & Co.

112 Albany Street, Cazenovia, NY 13035 | Phone: (315) 655-2964 Toll Free: 1-800-659-8044

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Diamonds and Dogs

1/2/2019

'January Effect' good for GE (GE). One of the worst performing stocks for 2018 is bouncing significantly to start the New Year up 5% to a one month high. No news on the stock, but typically the worst performing stocks one year get a boost in the following year as investors look for bargains. GE still faces a long road to recovery as they divested non-core businesses, fix liquidity issues and try to get troubled power unit back on track.

Tesla (TSLA) comes up short. Tesla is down 7% today as fourth quarter deliveries rose 8% sequentially to 90,700, below estimates of 92,000. In 2019 a big tax break goes away so Tesla will cut prices of its Model 3, S and X vehicles in the U.S. by $2,000 each, effective immediately, to halve the federal EV tax credit of $3,750 from $7,500. This may not be good for sales or profits in 2019 as tax credits go away. The company also has some debt coming due so they may have to raise capital once again.

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.