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
Forward PE: 12; Trailing 14 NA;
Earnings Trend: UP
Ransom Note Trendline: Buy AAPL<
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.
Forward PE: 16; Trailing PE: 22
Estimate Trend: Down
Ransom Note Trendline: Sell SNE
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
Forward PE: 13; Trailing PE: 14
Estimate Trend: UP
Ransom Note Trendline: Sell MSFT.