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: 

Family Dollar Stores, Inc., (SYMBOL: FDO) and the headline says:

Fine Quarter, but Management Lowers Fourth Quarter Guidance – Citi Research

Family Dollar Stores reported third-quarter earnings of $1.05 a share, above the $1.03 estimate, on increased sales and gross margins.  However, the company guided fourth quarter estimates downward as consumer discretionary spending remains hampered by the poor economy.

Family Dollar's 2013 earnings growth projections have already fallen from 15% down to 4% this year.  The PE is 17.3.

The stock continues to recover from a big fall in December.  We think investors should sell as the price reaches the upper $60’s.

Our Ransom Note trendline says:  SELL FAMILY DOLLAR STORES.

FDO Chart

FDO data by YCharts

Stock number two is: 

New York Times Co., (SYMBOL: NYT) and the headline says:

S&P Downgrades New York Times to Sell from Hold – Standard & Poor’s Research

“While we are encouraged by the trajectory of New York Times' digital conversion and believe it remains the best positioned of the newspapers in our coverage universe, we believe its valuation has run ahead of its fundamentals,” reports S&P.

Earnings are projected to fall a total of 28% over the next three years.  The PE is 30.

The stock price is approaching long-term resistance at $14.  We see no reason for investors to own shares in a company with consistently shrinking earnings.

Our Ransom Note trendline says: SELL NEW YORK TIMES.

NYT Chart

NYT data by YCharts

Stock number three is:

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.
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