Diamonds and Dogs

10/19/16

The oil sector is back. Oil driller, Halliburton (HAL) is up 5% to a new 52 week high after beating earnings estimates. Business remains tough as revenues fell 31.3% year over year to $3.83 billion, but the fundamentals are pointing in the right direction. Cash flow from operating activities for the third quarter was in excess of $1.0 billion. Increased commodity prices have stimulated rig count growth. Halliburton expects fundamentals to keep slowly improving into 2017.

Cree (CREE) is shining a little less bright today. The LED light maker is down 9% to a new 52 week low after missing earnings and guiding next quarter earnings and sales below consensus.  The analyst at Needham downgraded the stock to a hold saying the company is not showing any growth right now with ongoing challenges in rebuilding business momentum in the Lighting business. Without any meaningful M&A on the horizon, the analyst further mentioned CREE will require 2-3 quarters before it returns to growth.

Diamonds and Dogs market commentary is a journal of daily observations on anything that happens to be of interest to our author. Obviously, our primary focus is the stock market and world economic events, but for this page we have no defined topics. We want this page to be dedicated to the interests, concerns, and possibly to the financial gain of our clients and friends. All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.