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:
Citigroup Inc., (SYMBOL: C) and the headline says:
Citigroup Profit Beats Estimates as Stock Trading Gains -- Bloomberg
Citigroup reported second-quarter operating profit of $1.24, beating the consensus estimate of $1.18, and up 42% year-over-year. Stock-trading revenue spiked 68%. Losses on unwanted assets in Citi Holdings fell to $570 million, its smallest quarterly loss ever.
Earnings per share are expected to rise 23% this year. The PE is 10.9. Share buybacks are expected to total $7.4 billion in 2014.
The stock appears capable of breaking past long-term resistance at $52 in the near-term.
Our Ransom Note trendline says: BUY CITIGROUP.
Stock number two is:
AT&T Inc. and Leap Wireless Int'l Inc., (SYMBOL: T, LEAP) and the headline says:
AT&T to Acquire Leap Wireless for $1.2 Billion in Cash – The Wall Street Journal
AT&T has agreed to buy Leap Wireless for $15 per share, and the stock is trading near $17 today. The deal gives AT&T more customers and airwaves. Leap shareholders should absolutely sell into today’s inflated share price.
AT&T’s earnings are expected to grow 8-9% per year for the next three years. The PE is 14, and the dividend yield is 5%.
With a big dividend and a neutral stock chart, we told investors to hold AT&T three times this year.
Our Ransom Note trendline says: SELL LEAP WIRELESS and HOLD AT&T.
Stock number three is:
Open Letter to Obama and Congress From Internet Giants Calls For Reining In Government Surveillance | Nick Sorrentino
(An important interview) Saving the Net from the surveillance state (And Crony Media): Glenn Greenwald speaks up (Q&A) | Nick Sorrentino