Diamonds and Dogs

cats chasing dogs

CATS CHASING DOGS

Five years ago, it would have been hard to imagine that a bankrupt GM would be unceremoniously eliminated from the DOW 30. Who could have predicated that Travelers, the company that had put Sandy Weil back in the game of empire building, would be replacing Citigroup, a battered and quasi-government owned bank, in the DOW Jones. How could this be? Maybe it was a combination of Wall Street greed and labor union ineffectiveness. When all is said and done, capitalism took another major blow this week as GM, or Government Motors, threw in the towel. Wall Street hates the unknown and with the much anticipated bankruptcy of GM, markets roared as the NASDAQ, for example is now up 12 weeks in a row. When it comes to trading stocks, always expect the unexpected and many times what seems like news, is already baked in the cake.

Diamonds and Dogs

Thursday May 28, 2009


Diamonds

Snack-maker stocks soar over Wall Streets expectations when Diamond Foods shares gained 14.73%, or $3.78, to $29.44 in Thursdays afternoon trading. Companies saw earnings double as their third-quarter earnings skyrocketed 144% to $2.7 million, or 16 cents per share, from its previous 7 cents per share. Analysts are expecting a profit of 14 cents. Diamond Foods continue to invest higher gross profit dollars back into the company in order to fuel success.

Dogs

Moody's takes a hit and may lose the confidence in its investors. The highlight of the day was the voice of David Einhorn of Greenlight Capital on CNBC, who expressed concern in a depleting stock. Einhorn, who spoke before the collapse of Lehman Brothers, had sold Moody's stock short. The stock experienced a 4.48% decrease in value, closing at $26.89 a share.

Wednesday May 27, 2009

Diamonds

After a successful clinical trial of the company's migraine drug candidate, Levadex, MAP Pharmaceuticals experienced significant growth in stock. Deutsche Bank analyst David Steinberg suggested to "Buy" MAPP stocks as a result of their new innovation of Levadex. Steinberg predicts that that this product can raise sales to more than $250 million per year after its commercial launch in late 2011. MAP Pharmaceuticals increases their stock by 35.00%, or $3.15 and closed at $12.15 per share after Wednesdays afternoon trading

Dogs

Within the auto industry, bankruptcy seemed to be inevitable for General Motors. GM was the biggest loser 1930's. Much controversy within the auto maker's bondholders as they rejected a tentative deal between the auto makers debt-for-equity offer. Stocks have been moved substantially or traded heavily within the company as the stock closed a $1.15 per share.

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