Welcome to John Ransom’s Stocks in the News where the headlines meet the trendlines:
Stock number one: Abercrombie & Fitch Co.
And the headline says: Abercrombie shareholder wants CEO replaced or company sold- Reuters:
An Abercrombie & Fitch Co (ANF) shareholder urged the teen apparel retailer to replace Chief Executive Mike Jeffries after his contract expires in February, failing which the company should consider selling itself.
Engaged Capital LLC, which owns less than 1 percent of the company's shares, said in a letter to the board on Tuesday that the expiration of Jeffries' term is an opportunity for the board to set a new direction for the company.
Forward PE: 15; Trailing PE 19- Respectable PEs
Estimate Trend: Downward
Ransom Note Trendline: Avoid Abercrombie & Fitch Co.
Stock number two: Corning Inc.
What's In It For Corning And Samsung In The Samsung Corning Precision Deal? - Seeking Alpha
Corning (GLW) recently announced that it will buy out Samsung’s 43% stake in Samsung (GM: SSNLF) Corning Precision Materials (SCP), in exchange for $1.9 billion worth of new Corning convertible preferred shares. Additionally, Samsung will make an investment of $400 million in convertible preferred shares, which would give Samsung a 7.4% stake in Corning based on its current share count . The shares are convertible at $20 per share after seven years, or can be forced for conversion if the share price rises above $35. SCP manufactures LCD substrates that are used in TVs, laptops, monitors, mobile phones and cameras.
Forward PE: 11; Trailing PE: 14
Estimate Trend: None
Ransom Note Trendline: Sell Corning
Krispy Kreme Doughnuts, Inc.
Krispy Kreme Shares Plunge As Investors Go On A Diet- Investor's Business Daily
Investors are on a diet from Krispy Kreme Doughnuts' (KKD) stock, as shares plunged Tuesday after the chain issued a weak outlook Monday.
Shares were down 16.8% to 20.41, below its 50-day line and at a two-month low, on the stock market today. Competitor Dunkin' Brands (DNKN) shares dipped 0.3% to 48.32.
Late Monday, Krispy Kreme reported a 33% jump in earnings to 16 cents per share, beating analysts' estimates by a penny. But sales rose 7% to $114.2 million, just under forecasts for $114.6 million. Company same-store sales increased 3.7%.
Forward PE: 26; Trailing PE: 62
Estimate Trend: Downward
Ransom Note Trendline: Sell Krispy Kreme<
In Other News: Massachusetts School Board Moves to the Right of Democrats - Becomes Socialist | Michael Schaus
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for October 20th, 2014 | John Ransom