John Ransom

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

Stock number one: Ballard Power Systems

And the headline says: Partnership Fuels Ballard Power's Gains- The

In what is turning out to be a positive day for alternative fuel-cell developers, Ballard Power Systems (BLDP) soared 25.2% to $1.79 by mid-morning Friday. The micro-cap has risen 35.6% this week.

The Canada-based business is making gains after signing a non-binding memorandum of understanding with Van Hool NV, Europe's fourth-largest bus manufacturer, to develop zero-emission fuel-cell vehicles. Van Hool has committed to 27 fuel-cell buses, powered by Ballard technology, in operation across Europe through 2014.

Note: This stock recently traded at $1.79. The company’s stock price peaked near $130 back in 2000. In the day Ballard was like the Tesla of solar—which is why I included it today.

Symbol: BLDP

Dividend: NA

Forward PE: NA; Trailing PE: NA

Estimate Trend: NA

Ransom Note Trendline: Avoid Ballard.

BLDP Chart

BLDP data by YCharts

Stock number two: Sell Lumber Liquidators Holdings, Inc.

Fastenal November Daily Sales Above Oct- Yahoo Finance:

Fastenal Company (FAST) released decent sales results for the month of November wherein net sales rose 3.1% year over year to $621.3 million. Currency was a 0.4% headwind.

November daily sales grew 8.2% to $13.1 million, showing an improving trend from growth rates of 2.9%, 7.2%, 5.7% and 7.7% in the months of July, August, September and October, respectively. The daily sales growth was flat from November last year.

Fastenal carries a Zacks Rank #4 (Sell). Better-ranked stocks in the building products/ building construction sector include Liquidators Holdings, Inc. (LL), Builders FirstSource, Inc. (BLDR) and CaesarStone Sdot-Yam Ltd (CSTE). While Lumber and CaesarStone carry a Zacks Rank #1 (Strong Buy), Builders FirstSource holds a Zacks Rank #2 (Buy).

Symbol: LL

Dividend: 3%

Forward PE: 30; Trailing PE: 31

Estimate Trend: None

Ransom Note Trendline: Buy Lumber Liquidators

LL Chart

LL data by YCharts

Ten-Year Treasury

Market Action: Taper Concern Still Hovers- Cheat Sheet

Just when you thought it was gone – it’s back. After stocks managed to advance last Wednesday following three positive economic reports, financial commentators had reached the conclusion that the Federal Reserve’s new mantra, “tapering is not tightening” had finally sunk in, and that investors no longer had the same fears concerning cutbacks to the Fed’s bond purchases.

Thursday’s trading action demonstrated that the only difference is that the fear has been reduced to concern. Instead of a huge stock selloff in the wake of positive economic data, we saw a more restrained, 0.43 percent decline in both the Dow and the S&P 500. The yield on the ten-year Treasury note rose slightly to 2.87 percent.

Symbol: ^TNX

Dividend: N/A

Forward PE: NA; Trailing PE: NA

Estimate Trend: Steady

Ransom Note Trendline: Avoid Ten-Year Treasury

^TNX Chart

^TNX data by YCharts

John Ransom

John Ransom’s writings on politics and finance have appeared in the Los Angeles Business Journal, the Colorado Statesman, Pajamas Media and Registered Rep Magazine amongst others. Until 9/11, Ransom worked primarily in finance as an investment executive for NYSE member firm Raymond James and Associates, JW Charles and as a new business development executive at Mutual Service Corporation. He lives in San Diego. You can follow him on twitter @bamransom.

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