Here's a contrast for you: the best and third-best performing stocks in this market today: Monster Beverage (MNST) and Whole Foods (WFM). How in heck could the least natural and least organic major company and the most natural and organic major company lead the averages? And if you want some real irony, throw in the second best: Diamond Offshore (DO)!
OK, Monster's all about the need for its partner, Coca-Cola, to get young and get growth. This company delivered good, not spectacular, growth, but if you put a tape measure to the release there's a huge chunk of it devoted to the Coca-Cola tie-in. I read it to be the prelude to something much bigger coming down the pike that would be good for Coca-Cola, but amazing for Monster shareholders. I have been pushing this beast for ages and I have felt alone in doing so. But with Coca-Cola buying right alongside of me, I don't feel so lonely.
Whole Foods? Lots of people have given up on them, which is something that tends to happen after multiple disappointments. But look at the initiatives put into place, especially the first national ad campaign and some store redos that were just rolled out, and know the comparisons will be very easy. I see the company back on a growth track. Only a geopolitical event, in my opinion, can drive it back down. I loved that conference call.
Oh, and Diamond Offshore? Here's a severe disappointer that had its day when Transocean didn't sink big, despite the terrible news of a huge writedown and a delay in the financials.
But here's the issue. Other than it's cheap on a historic basis, what does this one do for you? We have to see oil go up huge, drilling budgets go back to levels that we thought they were going to be immediately, many of the current orders for more ships cancelled and a whole fleet of old platforms be taken offline. I think none of those things are going to happen.