Welcome to John Ransom’s Stocks in the News where the headline meets the trendline:
Stock Number One is:
Name: Apple Inc. (AAPL) --
and the headline says:
Apple Seen Raising Dividend More Than 50% to $16 Billion (Bloomberg)
Wall Street analysts are expecting Apple Inc. to raise its quarterly dividend to about $4.14, or a yield of 3.75%. This increase would easily be funded out of cash flow.
The stock price has been hemorrhaging since it became clear that earnings growth has ground to a halt. Earnings per share are projected to increase less than one percent this year.
The share price tumbled from a high of $705 to the current range of $420-$450, and has not yet formed a base.
Our Ransom Note trendline says: AVOID APPLE.
* * * * * *
Stock Number Two is:
Name: Ford Motor Company (F) --
and the headline says:
Ford’s CEO Mulally Gets Pay Slashed (Wall Street Cheat Sheet)
“Ford Motor Company fell short in three crucial areas last year: market share, cash flow, and profit.” As a result, CEO Alan Mulally has received a pay cut of 29%, to a cash & stock combo of $21 million.
Earnings per share fell in 2012, and are expected to be flat in 2013, due to economic woes in Europe, a glut on the car market in South America, and margin pressures in China.
Our Ransom Note trendline says: AVOID FORD MOTOR COMPANY.
- Topics:
- Jobs
- Investment
- stock market
- Crista Huff
Crista Huff
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Crista Huff is a retired stockbroker from a NYSE member investment firm. She writes about market-timing at Goodfellow LLC and is active politically.
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