Crista Huff

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

Safeway Inc., (SYMBOL: SWY) and the headline says:

Safeway to Sell Canada Unit to Sobeys for $5.7 Billion -- Bloomberg

Safeway has agreed to sell its Canadian stores to Sobeys.  Safeway will receive about $4 billion after taxes and expenses, which will be used to pay down $2 billion in debt, and repurchase shares.  Safeway’s long-term debt ratio is high at 60%.

Citi Research has revised its earnings projection for Safeway down to $1.89 per share in 2013, which is down 12% year-over-year.  The PE is 13.6, and the dividend yield is 3.11%.

The chart pattern is turning bullish, and the stock is likely to trade between $22 and $27 in the near-term.  Citi says, “we see a lack of catalysts to drive significant additional upside in the near term. “

Our Ransom Note trendline says:  HOLD SAFEWAY.

SWY Chart

SWY data by YCharts

Stock number two is: 

E I du Pont de Nemours and Co, (SYMBOL: DD) and the headline says:

DuPont Lowers 2Q and FY13 Guidance; Remain Neutral – Citi Research

DuPont has lowered Wall Street’s earnings expectations for the second quarter to about $1.27 vs. consensus $1.36.  Unusually cool, wet weather is impacting its Agriculture and Nutrition & Health businesses.

Earnings are expected to grow 16, 14 and 12% in the next three years.  The PE is 14, within a five-year range of 10 to 24; and the dividend yield is 3.34%.

DuPont stock has been in a three-year trading range between $40 and $56, narrowing recently toward the mid-50’s.  The numbers are attractive but the chart is neutral.

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 daily lineup delivered each morning to your inbox. Release of Liability: Through use of this website viewing or using you agree to hold and its employees harmless and to completely release 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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