Diamonds and Dogs

11/3/15

Two for two for the energy sector. November has been kind to the oils including today's diamond, Pioneer Natural Resources (PXD).  It's a tough time to be an oil company, but Pioneer Natural Resources is still trying to make the best of it. Production rose 7% year over year, but more importantly drilling and completion costs dropped 25% year over year while lease operating costs fell 18% allowing the company to beat earnings estimates. Pioneer is not doing great, but the good news is they will survive this downturn and should thrive once again when pricing improves.  

Fitbit (FIT), strong earnings lousy stock. Fitbit reported strong earnings and sales up a massive 167.7% year over year. The company any also raised fourth quarter guidance expecting a strong holiday season, but a huge secondary offering of 21 million shares, including 7 million primary shares and 14 million secondary shares told investors that the selling pressure looks to outstrip the strong earnings at least in the short term. Fitbit also announced that lock-up restrictions on 2.3 million shares will be lifted on Nov 4 for insiders to sell. Those poor insiders just got a bad deal from their management team. Thanks for nothing.