Welcome to John Ransom's Stocks In The News, where the headline meets the trendline.
Stocks in the News is produced by Ransom Notes Radio and Goodfellow, LLC. Crista Huff manages Goodfellow LLC, a website that recommends outperforming stocks using fundamental and technical analysis.
Stock number one is:
Stock number one is Bank of America Corp. (SYMBOL: BAC ) and the headline says:
BofA Chief Moynihan Said to Summon Managers for Revenue Push (Bloomberg)
“Bank of America CEO Brian Moynihan has summoned more than 100 of his regional leaders to a private meeting today where they’ll be pushed to boost the lender’s flagging revenue,” reports Bloomberg. BofA’s revenue fell 17% in 2011 and another 9% in 2012.
The revenue push will be modeled after Citibank’s famed “Financial Supermarket” concept, which emphasized cross-selling banking, mortgage and investment services to customers.
Projected earnings per share are rising at BofA after a string of losses. The stock price has risen to a trading range of $11-$15. Bottom-feeders are finally being rewarded with capital gains, but we wouldn’t recommend people throwing money at BofA shares.
Our Ransom Note trendline says: HOLD BANK OF AMERICA
Stock number two is:
Global Payments Inc. (SYMBOL: GPN) and the headline says:
Global Payments has Disappointing Quarter vs. Consensus Expectations (Citi Research)
Global Payments Inc., a provider of e-payment processing services, reported third quarter revenue, operating income and earnings per share slightly below expectations. Citi Research is maintaining a buy rating on the stock.
Earnings per share are projected to grow 5% this year at Global Payments, while competitors Visa (V) and MasterCard (MA) have projected earnings growth of over 15% for 2013 and more bullish charts. We recommended Visa & MasterCard on March 28.
We see no reason to chase less successful companies in the stock market when investors can maximize potential capital gains by going with industry leaders.