Diamonds and Dogs
June 14th, 2010Dog
It comes as no surprise the Dog "award" goes handedly to BP. The significant ongoing oil spill has the company screaming S.O.S. Despite the increasing barrels of oil that is able to be captured a day, 15,000 with 10,000 more barrels a day expected to be added on sometime this week, the company has seen it's stock spiral down ever since the spill was discovered on April 22. The anticipated meeting with President Obama to discuss the dividends paid to stockholders and the reimbursment of victims holds much of the company's future at stack. Recent markets have BP down 3 pts or 9% to just 30.89, showing BP flirting with annual lows and showing no signs of being able to tread water.
Lincoln National Corp
With plans ready to repay the TARP, it's clear that Lincoln National is a good candidate for our Diamond stock. Lincoln shares recently rose $1.64, 6.2%, to $28. Not only will it repay the $950 million of shares held by the U.S Teasury but it will do so by publicly offering $335 million in common stock and debt. The corporation looks to raise a total of $1 billion between the public offering and senior notes. The financial shares altogether seem to look a bit higher today making Lincoln National that much more attractive.