Diamonds and Dogs
12/11/15
No bottom in the price of oil just yet. Chevron Corporation (CVX) is one of many dogs in the oil patch down 3% today. There is not much the company can do right now except hunker down and wait for the price of oil and fundamentals to improve. The price per barrel of crude oil dropped to a seven year low back or the financial crisis levels when nothing was going right. Today it's not demand, but more of a glut of supply of oil that causing all the problems. OPEC and in particular Saudi Arabia could change all of this, but they're trying to inflict some pain on US fracking companies. The number of active oil rigs in the US decreased by 28 this week dropping to new wells in service. Eventually we'll bottom, but not yet.
It's almost time for taxes and that PDF reader and digital signature software from today's diamond of the day, Adobe Systems (ADBE). Adobe is up 3%, one of the few diamonds today, after beating analyst estimates. Adobe offers products for professionals, marketers, application developers, enterprises and consumers for a wide variety of content. They operate under three segments: digital marketing, digital media and print and publishing. At least they're seeing strong sales.
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