Diamonds and Dogs

12/31/12

Cal-Maine Foods Inc. (CALM)

Cal-Maine investors aren't going to be calm today with the stock down 9.54% at $40.22. The egg company saw its shares crack after news that its second quarter net income fell. Net income fell significantly from last year, with the figures coming in at $14 million down from $23 million. The company attributed the drop to higher costs for its key inputs, particularly corn and soybean meal, which make the feed for the animals that produce the company's eggs. Cal-Maine management said they believe input prices to stay "high and volatile" throughout 2013. The company is still well above its 52-week low of $34.06.

Cliffs Natural Resources Inc. (CLF)

Cliffs Natural is climbing higher today, up 8.40% at $38.57. The mining and natural resources company saw its shares explode after positive news from China and positive movement in iron ore. HSBC Corp. said manufacturing in China grew in December at its strongest rate in 18 months. China is the largest consumer of iron ore and coal for steelmaking. Furthermore, iron ore has been rebounding nicely over the past few weeks causing many mining companies to begin to see some upward movement. Cliffs moved $3.00 higher today off of the news and is well above its 52-week low of $28.05.

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