Stock number one is:
Apache Corp., (SYMBOL: APA) and the headline says: Sinopec to buy 33% stake in Apache Egypt – Want China Times
Apache Corp. has agreed to sell a minority stake in its Egyptian oil and gas business to Sinopec Group of China, for $3.1 billion. The stock is up today because the deal values the Egyptian assets much higher than Wall Street expected. Apache plans to pay down debt with other asset sale proceeds in the third quarter, and is now expected to use the Egyptian proceeds to fund additional share buybacks. The company recently repurchased 200,000 shares.
There will be minimal taxes on the sale if the proceeds remain in Egypt. Energy stock investors should note that the news is also bullish for valuing Occidental Petroluem’s (OXY) Middle East assets.
Apache stock is volatile and earnings growth is erratic. The share price could reach the low $90’s in the near-term.
Our Ransom Note trendline says: HOLD APACHE CORP.
Stock number two is:
salesforce.com, inc., (SYMBOL: CRM) and the headline says: Don’t Call It a Comeback, We’ve Been Here for Years – Morgan Stanley
Software company salesforce.com reported impressive second quarter numbers after the close yesterday, surprising Wall Street and driving the stock up about 14% today. “The company ... issued third-quarter sales and earnings forecasts that topped analysts’ estimates and raised guidance for the year,” reports Bloomberg.
Earnings are expected to fall this year, then experience very aggressive growth in the next several years.
The stock has been in a trading range since December and appears to be breaking out on the upside today. Experienced aggressive growth investors should consider jumping in on a pullback to $46.
Our Ransom Note trendline says..... BUY SALESFORCE.COM.
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