Diamonds and Dogs

November 6th 2008

November 7th, 2008

Diamonds and Dogs

Thursday, November 6th, 2008

Diamonds
The rout was on today in anticipation of tomorrow's unemployment number as stocks fell almost 500 points for the second day in a row. We can't blame Barry Obama yet, but the market has shown some weakness since the election. One diamond today was Yahoo (YHOO) the red haired step son of Google traded 4 cents higher as the CEO indicated a deal with Microsoft would be in their best interest. Where was Mr. Yang about 6 months ago when they had a real offer for $30 and change? YHOO closed the session at $13.96, about 10% higher than where it began the week.

Dogs
Oh, so many choices, so little time. How about Disney (DIS) which closed the session on its lows heading into their earnings. DIS fell to about $21.80 in after hours trading as they reported less than stellar earnings, missing analyst's expectations by 9 cents. DIS closed down over $2 for the day. In the pound today, the dogs were plentiful, if not rabid.

Wednesday, November 5th, 2008

Diamonds
Stocks got hammered today as the euphoria post-election passed quickly. The Dow dropped 500 points like it was nothing. One stock that put a head on the day was Molson Coors (TAP) (don't you love that symbol) as the brewer posted a $3.20 gain to make last call at $41.78. TAP had a 29% increase in third quarter income and was hitting on all barrels.

Dogs
Citigroup (C) fell $2 to $12.63 as the international banking giant continues to puke. C fell in sympathy with the news that Goldman will be laying off a big chunk of their employees. C is now down 62% on the year and is desperately seeking some kind of help from someone. Look how the mighty have fallen.

Tuesday, November 4th, 2008

Diamonds
It is Election Day and the Dow rallied 305 points to 9625 in anticipation to a long-awaited decision on the elections. Whoever wins, stock investors were the big winners today as the Dow propelled itself to the largest Election Day move higher ever. MasterCard (MA) didn't leave home without gaining 18% for the session, or $26 per share. MA closed at $170 after reporting earnings. Alternative energy stocks also got a boost into the election.

Dogs
Insurance companies like United Health (UNH) and Cigna (CI) fell today even with the markets heading higher. UNH is trading near lows and if the future brings a democratic universal healthcare, that can't be good for the largest private health insurer in the country. Change is good, unless you are an insurance company that can raise its rates 20% per year, every year.

Monday, November 3rd, 2008

Diamonds
What gives? The market has been wild over the past three months; no one needs to be reminded of that. Yet today, was calm, blissful almost, as the Dow gained 5 points. 5 points, in this market is like a flea to flea to an elephant. The diamond of the day goes to bio-tech giant Biogen Idec (BIIB) as they were upgraded by the street. BIIB rose $3.76 to $46.31 as it looks like all the bad news has been priced into the stock, a stock that is down 37% for the year.

Dogs
Bears start your engines. GM fell 14 cents to $5.65 and is now down 84% for the year. The beleaguered auto maker announced sales that were 45% lower in October, which is an unprecedented sales drop. GM is now worth only $3 billion in stock market valuation and headed lower.

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