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:
Facebook Inc. (SYMBOL: FB) and the headline says:
Facebook Introduces New Software Today
Facebook is revealing a new version of its smartphone software to analysts today, bearing similarities to Google’s operating system, with the goal of maximizing revenue through smartphone use.
Earnings projections remain steady from our last report in February, with growth expected at 8%, 37% and 33% over three years. The PE is 46.
We said to avoid the stock when it was correcting in February. Now it appears to be at the very bottom of a short-term price correction, but only experienced investors with an affinity for technical analysis should jump in here.
Our Ransom Note trendline says: HOLD FACEBOOK SHARES
Stock number two is:
Starwood Hotels & Resorts Worldwide (SYMBOL: HOT) and the headline says:
Starwood to Sell as Much as $3 Billion of Hotels (Bloomberg)
Starwood Hotels plans to sell up to $3 billion worth of hotels in order to focus on fee-based operations. Starwood hotel brands include Sheraton, Westin and St. Regis.
Revenue from operations is expected to grow from the current 60% to a goal of 80%, making the company less susceptible to economic swings. Earnings per share will be relatively flat in 2013, then grow 10% and 14% in the next two years.