Diamonds and Dogs

6/21/17

Red Hat (RHT) gets the nod. Plenty of stocks are up following earnings, but Red Hat is the diamond today jumping 10% to new highs after beating and raising guidance for the quarter and full year. Revenue rose 19% year over year. The analysts love the stock with at least six upgrades with price targets as high as $120 a share, but the stock is not cheap trading for 30 times earnings while only growing 20%.

The next shoe to drop. Foot Locker (FL) and Dicks (DKS) are down 6% on comments from a Goldman Sachs analyst saying Nike (NKE) could be nearing a possible direct relationship with Amazon (AMZN) to sell its products. Nike already sells in Amazon and I doubt Nike leaves Foot Locker and Dicks, but shareholders are certainly spooked.

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.