Stock number one is:
Tesla (SYMBOL: TSLA)
Tesla's Raging Inferno- Market Watch
"Tesla’s share price took a dive on concerns this high-end, high-tech electric vehicle might be susceptible to some kind of design flaw, that there might be something sinister going on in the battery pack, that this, like the lithium-ion batteries on Boeing’s 787 Dreamliner, might ignite all on its own," says MarketWatch.
Tesla's trading with the forward PE of about 90 right now, with revenues of about $1.3 billion. Analysts estimate that earnings will accelerate substantially in the next few years, settling in at about 18% over the next five years.
But this is a story stock. Plain and simple. Anyone looking for an investment should move on to something more fundamentally sound.
Ransom Note trendline says: Avoid Tesla
Stock number two is:
EMC Corp (SYMBOL: EMC)
“EMC invested 50% of its generated cumulative free cash flow in acquisitions and 43% in share repurchases," writes Achilles Research in Seeking Alpha. "Over the last five years, EMC repurchased $7.6 billion worth of shares."
The company trades at 12 times forward earnings. EMC has enjoyed above average earning growth over the last five years, but growth is expected to slow according to a survey of analysts. Earnings going forward over the next five year are expected to slow to about 13 percent.
Not bad growth, but not exponential.
Our Ransom Notes trendline says: Avoid EMC
Our third stock in the news is:
Intel (SYMBOL: INTC)
Time to Add the Tech Titans to Your Portfolio?- Motley Fool
“Intel has found its core PC processor market to be challenged as PC sales repeatedly disappoint, and ARM core processor designs have won out in the mobile market. Simply put, Intel's refusal to license ARM's architecture has hurt the company,” writes the Fool. “The good news is that Intel has invested in new processors (Bay Trail and Haswell) that should start to penetrate the ultra-mobile market as of this year. Intel will need to do this in order to hit guidance this year.”
The PE is around 12 times earnings, with about $6.6 billion of cash in the bank.
The company is moving back downward in the general selloff. It could test support at $22.
Our Ransom Note trendline says: Hold Intel
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