John Ransom

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

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

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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