John Ransom - Speculative Tech Stocks Day
Posted: 1/16/2014 9:38:00 AM EST

Welcome to John Ransom’s Stocks in the News where the headlines meet the trendlines:

Stock number one: Twitter, Inc.

Twitter: What Now?- Seeking Alpha

It's been a wild ride for shareholders of social media darling Twitter (TWTR). As 2013 ended and 2014 started, Twitter was one of the most talked about names on the street, and one of the biggest movers. Now that things have calmed down a little, it's time to take another look at Twitter.

Note: 10 percent short interest; small float that trades every 12 days.

Symbol: TWTR

Trailing PE NA; Forward PE: NA

PEG: NA

Dividend: NA

Estimate Trend: Flat

Ransom Note Trendline: Avoid Twitter

TWTR Chart

TWTR data by YCharts

Stock number two: Facebook

Facebook's Teen Users Down 25% During the Past 3 Years- Motley Fool

A new study shows Facebook's (NASDAQ: FB) teen problem in the U.S. may be worse than previously thought. The study from iStrategyLabs shows self-reported teen users have fallen by 25% during the past three years, while self-reported users in college are down nearly 60%! Read on to find out more.

The question of teens leaving Facebook has been a hot topic this year, as multiple surveys have shown teens losing interest in Facebook. Investors are worried that this could be the start of a larger trend.

Symbol: FB

Trailing PE: 148 Forward PE: 51

PEG: 2.11

Dividend: NA

Estimate Trend: UP

Ransom Note Trendline: Hold Facebook

TWTR Chart

TWTR data by YCharts

Stock number three: Tesla Motors, Inc.

Tesla sales electrify—Wall Street Journal

Tesla (TSLA) surged in early trading after the company revealed it sold 6,900 Model S sedans last quarter. The company also increased its fourth quarter guidance by 20%.

Note: From the Tesla press release: “Tesla’s highest sales per capita are in Norway and the individual customer who owns the most cars lives in Narvik, which is above the Arctic Circle.”

Symbol: TSLA

Trailing PE: NA; Forward PE: 111

PEG: 12.71

Dividend: NA

Estimate Trend: Down

Ransom Note Trendline: Avoid Tesla

TSLA Chart

TSLA data by YCharts

John Ransom - Don't Bank on Banks
Posted: 1/14/2014 9:19:00 PM EST

Welcome to John Ransom’s Stocks in the News where the headlines meet the trendlines:

Stock number one: Bank of America Corporation

Bank of America's Cost Cutting Will Face Scrutiny- Yahoo Finance

Bank of America (BAC_) is set to report earnings Wednesday morning, and once again the focus will be on how well the bank is doing at cutting expenses.

Analysts are looking for the bank to earn 27 cents per share, compared to 28 cents during the third quarter and 29 cents during the fourth quarter of 2012.

"We doubt that weak Q4 results will have a significant impact on share prices with investors far more focused on core earnings trends for the year ahead," argued Atlantic Equities analyst Richard Staite in a Dec. 19 preview of the banking sector.

Note: Price to book: 0.80

Symbol: BAC

Trailing PE 25; Forward PE: 13

PEG: 1.11

Dividend: 0.20%

Estimate Trend: Flat

Ransom Note Trendline: Buy Bank of America

BAC Chart

BAC data by YCharts

Stock number two: JP Morgan Chase

The end of the mortgage party? Home lending plummets at Wells Fargo, J.P. Morgan Chase, - MarketWatch

The mortgage party is officially over.

Rising mortgage rates mean that fewer people are refinancing their homes, which bludgeoned fourth-quarter mortgage results at Wells Fargo & Co. WFC +0.42%and J.P. Morgan Chase & Co. JPM +0.40% , the country’s leading residential lenders, according to earnings reports released early Tuesday.

Note: Price to Book: 1.11

Symbol: JPM

Trailing PE: 13; Forward PE: 10

PEG: 2.20

Dividend: 2.6

Estimate Trend: Down

Ransom Note Trendline: Hold JP Morgan Chase

JPM Chart

JPM data by YCharts

Stock number three: Wells Fargo

Wells Fargo’s Mortgage Business Sputters —Wall Street Journal

Wells Fargo, the largest mortgage lender in the U.S., saw profits for its mortgage lending division drop by 49% from the fourth quarter of 2012 to $1.6 billion. The bank’s home-lending originations totaled $50 billion, compared with the $125 billion a year earlier and $80 billion in the previous quarter.

Note: Price to Book: 1.57

Symbol: WFC

Trailing PE: 12; Forward PE: 11

PEG: 1.34

Dividend: 2.6

Estimate Trend: Up

Ransom Note Trendline: Avoid Wells Fargo

WFC Chart

WFC data by YCharts

John Ransom - Earnings Dominate...and That's Good Regardless of Market Direction
Posted: 1/13/2014 8:30:00 PM EST

Welcome to John Ransom’s Stocks in the News where the headlines meet the trendlines:

Stock number one: lululemon athletica inc

Lululemon shares dogged downward by another warning- Yahoo Finance

Lululemon (LULU) getting bootstomped this morning after the company guided estimates lower for the fourth quarter. It’s hard to call the news a shock given the recent trends in the business except for the fact that it blamed the miss on traffic and sales in January. How one of the slowest months of the year could be so bad as to justify a warning less than two weeks into the new year is a mystery.

Symbol: LULU

Dividend: 1.50%

Forward PE: 22; Trailing PE 27;

PEG: 1.66

Estimate Trend: Down

Ransom Note Trendline: Sell Lululemon

LULU Chart

LULU data by YCharts

Stock number two: Ericsson

Peace initiative launched in Mexico with Forest Whitaker, Ericsson, UNESCO, - Thompson-Reuters

Blah, blah, blah, UN, blah, blah, blah, peace…..

Symbol: ERIC

Dividend: 2.5

Forward PE: 14 Trailing PE: NA

PEG: .77

Estimate Trend: Flat

Ransom Note Trendline: Hold Ericsson

ERIC Chart

ERIC data by YCharts

Stock number three: The Wendy's Company

Why Wendy's (WEN) Is Up Today —The Street.com

Wendy's Co.(WEN_) was rising 7.6% to $9.09 Monday morning after the fast-food chain offered investors its 2014 earnings forecast that beat analysts' expectations. The Dublin, Ohio-based company projected full-year adjusted earnings of 34 to 36 cents per share, well above the average analyst projection of 29 cents per share. Wendy's also announced that it expects company-owned same-restaurant sales to increase by 2.5% to 3.5% for the full year.

Symbol: WEN

Dividend: 2.4

Forward PE: 31; Trailing PE: 95

PEG:

Estimate Trend: UP

Ransom Note Trendline: Avoid Wendy’s

WEN Chart

WEN data by YCharts

John Ransom - Biotech Leads the Way
Posted: 1/8/2014 9:25:00 AM EST

Welcome to John Ransom’s Stocks in the News where the headlines meet the trendlines:

Stock number one: Neurocrine Biosciences

Neurocrine shares keep climbing- AP

Shares of Neurocrine Biosciences Inc. surged in premarket trading Tuesday morning, a day after the drug developer surprised some analysts with positive results from a mid-stage study of one of its experimental drugs. The San Diego company had said Monday that a potential treatment labeled NBI-98854 fared much better than a placebo, or fake drug, in reducing the symptoms of tardive dyskinesia, an illness that causes involuntary movements and spasms.

Symbol: NBIX

Dividend: NA

Forward PE: NA; Trailing PE NA;

PEG: NA

Estimate Trend: NA

Ransom Note Trendline: Avoid Neurocrine Bioscience

NBIX Chart

NBIX data by YCharts

Stock number two: Pharmacyclics Inc.

Pharmacyclics shares soar after panel says cancer drug met goals- MarketWatch

Pharmacyclics Inc., a company developing cancer treatments, saw its shares soar 18% Tuesday after an independent committee recommended that Phase 3 tests on its Imbruvica drug be stopped because the therapy had already met several goals.

The drug, used to treat particular forms of leukemia and lymphoma, showed “statistically significant” improvement in survival rates for patients using Imbruvica versus another drug, Ofatumumab, Pharmacyclics

Symbol: PCYC

Dividend: NA

Forward PE: 705; Trailing PE: 214

PEG: 1,113

Estimate Trend: NA

Ransom Note Trendline: Hold Pharmacyclics

PCYC Chart

PCYC data by YCharts

Stock number three: Rally Software Development Corp.

Rally Software initiated with an Overweight, named a Top Pick at Stephens—Fly on the Wall

Stephens initiated Rally Software with an Outperform and named it an 2014 Best Idea given its best in class product, high customer satisfaction, strong management, and improving end markets. Price target is $30. Target $30.

Symbol: RALY

Dividend: NA

Forward PE: NA; Trailing PE: NA

PEG: NA

Estimate Trend: None

Ransom Note Trendline: For Aggressive, experienced Investors, Buy at pullback to $18.

RALY Chart

RALY data by YCharts

John Ransom - Is the Beer Boom Over?
Posted: 1/2/2014 11:47:00 PM EST

Stock number one: General Electric.

And the headline says: Clean Coal Technology is a Necessity & These 3 Companies Know It- Motley Fool

Coal gasification is just one part of what GE and Siemens do, too. Both industrial giants are big players in other key energy areas like natural gas and wind turbines. So not only will they benefit from increasing demand for cleaner coal in high growth markets, but also from increased use of other clean power sources, too. That's partly tied to the environment, but also to the mainstreaming of new technology. New power plants generally use the cleanest technology they can afford.

Symbol: GE

Dividend: 3.10

Forward PE: 16; Trailing PE 21;

PEG: 1.87

Estimate Trend: Flat

Ransom Note Trendline: Sell General Electric

GE Chart

GE data by YCharts

Stock number two: Trina Solar Limited.

Report: Solar wafer prices to rise to nearly $1, DigiTimes says - Yahoo Finance

Solar-grade crystalline silicon wafer prices have risen to 98c-99c due to strong demand and high-efficiency wafers have exceeded $1, reports DigiTimes, according to a Chinese-language Economic Daily News report. Prices are also likely to rise by another 5% in January 2014.

Symbol: TSL

Dividend: NA

Forward PE: 41; Trailing PE: NA

PEG: NA

Estimate Trend: Up

Ransom Note Trendline: Sell Trina Solar

TSL Chart

TSL data by YCharts

Stock number three: Boston Beer Co. Inc.

Must-know: 4 things that could negatively impact Boston Beer Co.—Yahoo Finance Market Realist

Investment in Boston Beer Company doesn’t come without risks. There are four major risks that could negatively impact returns for investors: financial valuations, poor economic growth, increased industry competition, and higher input costs.

Symbol: SAM

Dividend: NA

Forward PE: NA; Trailing PE: 45

PEG: NA

Estimate Trend: Flat to Up

Ransom Note Trendline: Sell Boston Beer

SAM Chart

SAM data by YCharts

John Ransom - Another Big Christmas List
Posted: 12/23/2013 10:43:00 PM EST

Welcome to John Ransom’s Stocks in the News Christmas edition where the headlines meet the trendlines meets the wish list.

We’ve taken the wish list from CNN/Fortune of top tweets to @Santa and looked at the companies behind the top wished for presents in 2013.

First the @Santa list of top gifts from CNN/Fortune:

Stock number one: Apple Computers. (IPHONE, IPAD)

And the headline says: The Apple-China Mobile iPhone deal: What analysts are saying- Fortune

Brian White, Canter Fitzgerald: Apple & China Mobile Saddle Up the iPhone for the Year of the Horse -- Giddy Up! "Sunday evening, Apple and China Mobile finally tied the knot with a multi-year agreement announced. This long-awaited agreement includes Apple's new iPhones that will be available on the China Mobile 4G & 3G networks on January 17, 2014. In our view, this agreement is well timed for the Chinese New Year that begins on January 31, 2014, the year of the "horse". In our view, this has been the most difficult carrier agreement for Apple to negotiate in its history; however, we believe the opportunity for the iPhone to expand its reach within China Mobile's wireless subscriber base will prove to be well worth the wait." Rating: Buy. Price target: $777

Symbol: AAPL

Dividend: 2.2o

Forward PE: 12; Trailing 14 NA;

PEG: .88

Earnings Trend: UP

Ransom Note Trendline: Buy AAPL

<AAPL Chart

AAPL data by YCharts

Stock number two: Sony Corporation. (PS4)

PS4 vs Xbox One: 3 Key Takeaways After 1 Month of Sales- Motley Fool

The Playstation 4, which debuted a week earlier than the Xbox One, appears destined to finish 2013 on a high note. Meanwhile, Nintendo's (NASDAQOTH: NTDOY) struggling console, the Wii U, surged 340% month-over-month in November thanks to the September price drop to $299 and the eagerly anticipated release of Super Mario 3D World. According to new survey data provided by GameSpot Trax, it appears that the Playstation 4 is definitively beating the Xbox One in several key aspects. GameSpot's survey consists of data from a CBS Interactive audience comprised of core gamers and early adopters, collected between Dec. 5 and Dec. 10.

Symbol: SNE

Dividend: 1.40

Forward PE: 16; Trailing PE: 22

PEG:

Estimate Trend: Down

Ransom Note Trendline: Sell SNE

SNE Chart

SNE data by YCharts

Stock number three: Microsoft Corporation. (XBOX)

Why Microsoft Won't Spin Off Xbox- Seeking Alpha

Today, the growth prospects for consoles aren't as prosperous as they were 10 years ago. Instead it has become much more important for Microsoft to be present in the smartphone and tablet market. So one may question Steve Ballmer's decision to reposition Microsoft as a hardware company with the Xbox as the largest revenue driver

Symbol: MSFT

Dividend: 3.00

Forward PE: 13; Trailing PE: 14

PEG: 1.26

Estimate Trend: UP

Ransom Note Trendline: Sell MSFT.

MSFT Chart

MSFT data by YCharts

John Ransom - Robots Take Over the Market
Posted: 12/17/2013 2:19:00 PM EST

Welcome to John Ransom’s Stocks in the News where the headlines meet the trendlines:

Stock number one: Adept Technology.

And the headline says: Adept Technology joins rally in robot space, shares up 6% - Yahoo Finance

Shares of intelligent robot maker Adept Technology (ADEP) are benefiting from increased interest in the space following Raymond James upgrade of peer iRobot (IRBT) and Google's (GOOG) purchase yesterday of Boston Dynamics, an engineering company that has designed mobile research robots for the Pentagon. Shares of Adept are up 6%, or 76c, to $12.45 in late morning trading.

Note: The stock has had a really good run since rallying in August 2012. If you have profits take them. Small market-cap; lack of earnings visibility are problems

Symbol: ADEP

Dividend: N/A

Forward PE:NA; Trailing PE NA;

PEG: 0

Estimate Trend: UP

Ransom Note Trendline: Sell Adept Technology

ADEP Chart

ADEP data by YCharts

Stock number two: iRobot Corporation.

iRobot surges after analyst upgrades to Strong Buy Fly on the Wall

Shares of robot maker iRobot (IRBT) are climbing after research firm Raymond James upgraded the stock in a note to investors earlier today. WHAT’S NEW: iRobot’s new vacuum robot, the Roomba 800, should boost iRobot’s sales in 2014, Raymond James analyst Brian Gesuale wrote in a note to investors. Also likely to boost the company in 2014 are the expansion of the company’s mopping robot, the Braava, into new markets and the higher gross profits that the additional Braava sales will generate, the analyst added.

Note: Gesuale’s price target is $39 and the stock has printed today at $37.10

Symbol: IRBT

Dividend: NA

Forward PE: 58; Trailing PE: 32

PEG: 3.66

Estimate Trend: Up

Ransom Note Trendline: Hold iRobot

IRBT Chart

IRBT data by YCharts

Stock number three: Gogo Inc.

5 of Last Week's Biggest Losers — Motley Fool

Gogo soared 23% a week earlier after announcing certification for deploying its Ku-satellite technology in Boeing 747-400 aircraft. The move allows the in-flight Wi-Fi provider to make an international push. Gogo gave back roughly half of those gains this past week. There was legislation introduced in Congress to block voice calls -- something that could be seen as detrimental to the value of Gogo's airborne connectivity -- but the sell-off was probably more a case of profit-taking after the prior week's rally.

Symbol: GOGO

Dividend: NA

Forward PE: NA; Trailing PE: NA

PEG: NA

Estimate Trend: Flat

Ransom Note Trendline: Sell GOGO

GOGO Chart

GOGO data by YCharts

John Ransom - How Obama Peeled $15 Bilion Off Coal Company Since 2008
Posted: 12/16/2013 12:13:00 PM EST

Welcome to John Ransom’s Stocks in the News where the headlines meet the trendlines:

Stock number one: Himax Technologies.

And the headline says: Himax Technologies is a top pick for 2014 at Northland Securities- Fly On the Wall

Northland recommends buying Himax aggressively and raised estimates given stronger near-term momentum in the small/medium display business and increased activity in the new LCOS display business. The firm expects momentum to carry in 2014 and named it a top pick and raised its price target to $15 from $12. Shares are Outperform rated.

Symbol: OSTK

Dividend: N/A

Forward PE: 34; Trailing PE 20;

PEG: 1.04

Estimate Trend: UP

Ransom Note Trendline: Buy Himax for speculative accounts

HIMX Chart

HIMX data by YCharts

Stock number two: Carnival Corporation.

And the headline says: People Want to Take Cruises Again! How Should You Play It? - Motley Fool

Although it has been plagued with a string of mishaps, the cruise industry seems to be moving forward nicely. Carnival (NYSE: CCL) in particular was affected more than its competitors with the Costa Concordia accident as well as the "cruise from hell" on the Triumph, in addition to several other minor incidents. So now that peak vacation season is upon us, it seems like a good time to take another look and see how Carnival and the rest of the industry is moving forward.

Symbol: CCL

Dividend: 0.90

Forward PE: 23; Trailing PE: 26

PEG: 1.90

Estimate Trend: Down

Ransom Note Trendline: Avoid Carnival Corppration.

CCL Chart

CCL data by YCharts

Stock number three: Arch Coal

And the headline says:Arch Coal Completes Consent Solicitation for Its 8.750% Senior Notes due 2016—Company release

Arch Coal today announced that it has successfully completed its consent solicitation with respect to its 8.750% Senior Notes due 2016. On December 2, 2013, Arch commenced a cash tender offer for any and all of its outstanding 600 million aggregate principal amount of Notes. In connection with the Tender Offer, Arch solicited consents from the holders of the Notes for certain proposed amendments to the indenture governing the Notes.

Note: Market cap for ACI has shrunk from about $16 billion (2008) rallied to $8 billion (2011) and now is less than one billion dollars under Obama. Obama has waged a "war" on coal, if you didn't notice.

Symbol: ACI

Dividend: NA

Forward PE: NA; Trailing PE: NA

PEG: NA

Estimate Trend: Down

Ransom Note Trendline: Sell Arch Coal

ACI Chart

ACI data by YCharts

John Ransom - Mastercard has room to grow as consumers come back to credit
Posted: 12/12/2013 9:17:00 AM EST

Welcome to John Ransom’s Stocks in the News where the headlines meet the trendlines:

Stock number one: NorthStar Realty Finance.

And the headline says: NorthStar Realty Finance- Associated Press:

Shares of NorthStar Realty Finance rose to a multiyear high on Wednesday as the commercial real estate investment firm announced plans to spin off its asset management business into a separate publicly traded company.

On Tuesday NorthStar Realty Finance Corp. said that NorthStar Asset Management Corp. is expected to list on the New York Stock Exchange during the second quarter next year.

Symbol: NRF

Dividend: 8.6%

Forward PE: 9; Trailing PE N/A-

Estimate Trend: NA

Ransom Note Trendline: Buy Northstar for income.

NRF Chart

NRF data by YCharts

Stock number two: Burlington Stores.

Jim Cramer's 6 Stocks in 60 Seconds - The Street.com

Here's what Jim Cramer had to say on CNBC's "Squawk on the Street" Wednesday….

Shares of Burlington Stores (BURL_) got hit Tuesday on poor company guidance. Cramer suggested investors "buy G-III Apparel Group (GIII_)."

Note: On Tuesday Motley Fool wrote:

The off-price retailer posted a loss of $0.05, in line with estimates, while revenue grew 10% to $1.06 billion. Comparable sales in the quarter improved 3.9% in what was the company's first report as a publicly traded company. The market seemed to be disappointed by same-store sales, projected to be just 2%-3% in the fourth quarter. CEO Tom Kingsbury said the company was "focused on executing growth drivers, expanding retail store base, and enhancing our operating margins in the future."

HOT IPO! Cooled off.

Symbol: BURL

Dividend: N/A

Forward PE: 28; Trailing PE: 47

Estimate Trend: None

Ransom Note Trendline: Sell Burlington Stores.

<BURL Chart

BURL data by YCharts

Mastercard

MasterCard Pays Shareholders—Seeking Alpha

After rallying more than 55% so far in 2013, shares of MasterCard (MA) picked up another 3% after hours thanks to several shareholder friendly announcement (available here). While the march to $1,000 has been delayed, perhaps indefinitely, should investors buy MA after its buyback, dividend, and stock split announcement?

Symbol: MA

Dividend: 2.4

Forward PE: 26; Trailing PE: 31

Estimate Trend: Upish

Ransom Note Trendline: Buy MasterCard

MA Chart

MA data by YCharts

John Ransom - Cure for Cancer? Pretty Close
Posted: 12/9/2013 12:52:00 PM EST

Welcome to John Ransom’s Stocks in the News where the headlines meet the trendlines:

Stock number one: Twitter

And the headline says: Twitter gains as tech leaders call for curbs on spying - MarketWatch:

Tech stocks held a mild positive edge Monday, with Twitter Inc. among the advancers as the microblogging company joined with several tech leaders to call upon President Obama to push for tighter controls on government efforts to spy online.

In a letter published Monday , Twitter, along with Apple Inc., Microsoft Corp., Facebook Inc., Google Inc., Yahoo Inc., AOL Inc. and LinkedIn Corp. took a unified front to urge President Obama and the U.S. Congress to take steps to reform how governmental agencies are able to access data from online services.

Note: Twitter is trading about 26 times next year’s sales in the best-case scenario. It has a very limited trading history. Just to repeat: I rarely like IPOs unless I own them at pricing.

Symbol: TWTR

Dividend: NA

Forward PE: NA; Trailing PE: NA

Estimate Trend: Up

Ransom Note Trendline: Avoid Twitter

TWTR Chart

TWTR data by YCharts


Stock number two: J. C. Penney Company, Inc

Today's Dead Cat Bounce Stock Is J.C. Penney - The Street.com:

Trade-Ideas LLC identified J.C. Penney (JCP) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified J.C. Penney as such a stock due to the following factors:

JCP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $390.4 million.

JCP has traded 48.4 million shares today.

JCP is up 3.2% today.

JCP was down 8.7% yesterday.

Symbol: JCP

Dividend: NA

Forward PE: NA; Trailing PE: NA

Estimate Trend: Whatever

Ransom Note Trendline: Avoid JC Penny

JCP Chart

JCP data by YCharts

Pharmacyclics Inc.

Market Action: Taper Concern Still J&J, Pharmacyclics leukemia drug effective long term –study—Reuters:

A closely watched leukemia drug developedby Johnson & Johnson and Pharmacyclics Inc maintained its effectiveness in keeping the disease at bay formost patients, according to long-term follow-up data from amidstage study being presented at a major medical meeting.

The oral drug, ibrutinib, last month won U.S. approval totreat a rare and aggressive form of non-Hodgkin lymphoma knownas mantle cell lymphoma. It is awaiting a Food and DrugAdministration decision on treating chronic lymphocytic leukemia(CLL), a slowly progressing form of blood cancer that primarilyaffects people aged 65 and older.

Note: Analysts say that this is almost a $5 billion global market. Says Bloomberg: “Ibrutinib was approved by the U.S. Food and Drug Administration last month for mantle cell lymphoma, with a decision expected for CLL by the end of February. A study presented at last year’s hematology meeting and published in June in the New England Journal of Medicine showed that 71 percent of patients responded to the drug. Further data are being presented at this year’s meeting.”

Symbol: PCYC

Dividend: N/A

Forward PE: 848; Trailing PE: 201

Estimate Trend: Up

Ransom Note Trendline: Buy Pharmacyclics

PCYC Chart

PCYC data by YCharts

TOWNHALL FINANCE DAILY

Get the best of Townhall Finance Daily delivered straight to your inbox

Follow Townhall Finance!