Crista Huff
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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: 

Lululemon Athletica Inc., (SYMBOL: LULU) and the headline says:

Only the CEO Has Changed – Morgan Stanley Research

Christine Day is stepping down as CEO of Lululemon, maker of much-loved yoga pants, in the wake of a product recall which also cost the Chief Product Officer her job.  Morgan Stanley said today, “The CEO exit may imply deep organizational turmoil sometimes seen in high growth businesses. “

We reported on March 19 that the company was forced to recall yoga pants which were too sheer, due to a manufacturing error, and we told investors to stay on the sidelines.  Expected 2013 earnings growth has since come down from 23% to 8%.  The PE is 34.

After reaching new highs yesterday, Lululemon’s stock crashed through several support levels today, down to support at $65.  With a CEO search underway and a bearish chart, there is no near-term upside to this stock.

Our Ransom Note trendline says:  AVOID LULULEMON.

LULU Chart

LULU data by YCharts

Stock number two is: 

Sprint Nextel Corp., (SYMBOL: S) and the headline says:

Softbank Raises Sprint Bid -- Bloomberg

SoftBank Corp. has raised its bid to acquire Sprint Nextel shares to $7.65 apiece, vs. Dish Network’s offer valued at about $7.00 per share in cash and Dish stock.  “Sprint says that Dish has until June 18 to make its 'best and final' offer,” reports Bloomberg.

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Crista Huff

Crista Huff is a retired stockbroker from a NYSE member investment firm. She writes about market-timing at Goodfellow LLC and is active politically.
 
TOWNHALL DAILY: Be the first to read Crista Huff's column. Sign up today and receive Townhall.com daily lineup delivered each morning to your inbox. Release of Liability: Through use of this website viewing or using you agree to hold www.GoodfellowLLC.com and its employees harmless and to completely release www.GoodfellowLLC.com and its employees from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. Goodfellow LLC and its employees are not paid by third parties to promote nor disparage any investment. Recommendations are based on hypothetical situations of what we would do, not advice on what you should do. Neither Goodfellow LLC nor its employees are licensed investment advisors, tax advisors, nor attorneys. Consult with a licensed investment advisor and a tax advisor to determine the suitability of any investment.
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