Welcome to John Ransom's Stocks In The News, where the headline meets the trendline. 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:
Apple Inc., (SYMBOL: AAPL) and the headline says:
Apple Boosts Quarterly Revenue Guidance on Strong iPhone Sales -- MacRumors
"Apple sold 9 million iPhone 5s and 5c models, nearly doubling the sales of its best previous debut weekend. S&P says, “We see AAPL as well-positioned for the holiday shopping season.”The company is also guiding Wall Street toward the high end of its estimates on fourth quarter revenue and margins.However, earnings are still expected to fall about 10% this year, then grow slowly from there."
In other Apple news, one of the most respected hacking groups in the world has apparently successfully hacked Apple’s Touch ID fingerprint scanner, causing embarrassment to Apple.
The share price is up about $20 today, and will likely reach $505, then pull back to the high $480’s.Apple bulls should try to accumulate shares below $490. Everyone else should look for companies with double-digit earnings growth.
Our Ransom Note trendline says:HOLD APPLE.
Stock number two is:
ADT Corp., (SYMBOL: ADT) and the headline says:
ADT Corp.: $1 Billion Debt Offering – Morgan Stanley
"Home security leader ADT announced plans today to offer $1 billion of senior unsecured notes. The money will be used toward acquisitions, repayment of debt, share buybacks, and dividendincreases.
Earnings are expected to grow 6-11% per year over the next three years.The PE is high at 23."
ADT separated from former parent company Tyco International last September.The stock rose to $50, bounced around at $39 this summer, and is now rebounding.The share price seems very inflated.Lucky shareholders should sell in the mid-$40’s and move on to an undervalued growth stock.
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