Diamonds and Dogs
AIG (AIG) jumping to a seven month high, breaking a six quarter losing streak. The US insurer conglomerate is up 3% thanks to strong earnings particularly from their largest unit. The property-casualty business has struggled with pay out charges in recent years. The first quarter results represented strong performance with improved margins for hopefully, sustainable profit growth going forward.
Mylan (MYL) making a new 52 week low. The maker of the Epi-pen is down 4% to a new 52 week low following earnings. Earnings beat by 2 cents as sales fell 7.0% to $2.5 billion, below expectations. Manufacturing problems at its West Virginia plant aren't helping things. Mylan is discontinuing some products and job cuts at the plant. The U.S. Food and Drug Administration has issued a warning letter to Mylan, raising concerns such as the failure to follow the procedures for cleaning and maintaining equipment at the plant. In the last four years, the stock is down 68%. Maybe its time to change management.