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:
LinkedIn Corporation, (SYMBOL: LNKD) and the headline says:
LinkedIn Earnings: Profit Soars, but Shares Fall on Weak Outlook--WSJ Online
LinkedIn, the world’s biggest online professional-networking service, reported a good first quarter. However, the company announced downward revisions to its second quarter and full-year revenue estimates, disappointing Wall Street. LinkedIn appears to be trailing in mobile advertising growth, which was a catalyst to Facebook’s upside earnings surprise this week.
Wall Street previously expected LinkedIn’s earnings to rise 53-55% per year over the next three years. The PE is 135.
There is price support at $180, and then again at $170. Shares have risen rapidly, and shareholders should use stop-loss orders to protect profits.
Our Ransom Note trendline says: STAY ON THE SIDELINES.
Stock number two is:
Teradata Corp., (SYMBOL: TDC) and the headline says:
First Quarter ‘13 Worse, but Pipeline Growing – Morgan Stanley Research
Data-Storage company Teradata Corp. reported a disappointing first quarter, with lower revenues. Gross margins are suffering as large deals are expected to close later in the year and earnings are currently derived from lower-margin service businesses. However, the revenue pipeline looks attractive.
Earnings are projected to grow in the low single digits this year. The PE is 16.3.
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