Stock number one is:
Pandora Media Inc., (SYMBOL: P) and the headline says: New CEO Should Help Radio Embrace Its Digital Future – Morgan Stanley
Pandora Media has selected digital-advertising veteran Brian McAndrews as its new CEO, Chairman and President. Morgan Stanley says “we think Mr. McAndrews is well-suited to lead Pandora in its efforts to evangelize the digital radio advertising model to broadcast radio buyers.”
The company took a small loss last year, will make a small profit this year, and then earnings are projected to grow rapidly.
The stock price is up 23% since we urged investors to “buy low” during the August market correction, and it broke through upside resistance today. Expect Pandora stock to climb for a while now. The next stock price catalyst will be a report on the September listener metrics in early October.
Our Ransom Note trendline says: BUY PANDORA MEDIA.
Stock number two is:
Bristol-Myers Squibb Co., (SYMBOL: BMY) and the headline says: Bristol-Myers Prostate Cancer Treatment Falls Short -- NASDAQ.com
Bristol-Myers reported lackluster results in drug trials to treat advanced prostate cancer, prolonging patients’ lives by about five weeks. Phase III studies are underway for patients with less-advanced cancer, who responded better to treatment. The drug is currently successful in treating melanoma, and the company is seeking to use it to treat additional cancers.
Bristol-Myers is a profitable company, but lacks earnings growth. The PE is 25 and the dividend yield is 3.22%.
After a huge run-up this year, the stock corrected in August, and will likely trade between $41 and $48 for the rest of the year. We think the stock is grossly overvalued.
Our Ransom Note trendline says..... HOLD BRISTOL-MYERS.
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