John Ransom

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

Stock number one: lululemon athletica inc

Lululemon shares dogged downward by another warning- Yahoo Finance

Lululemon (LULU) getting bootstomped this morning after the company guided estimates lower for the fourth quarter. It’s hard to call the news a shock given the recent trends in the business except for the fact that it blamed the miss on traffic and sales in January. How one of the slowest months of the year could be so bad as to justify a warning less than two weeks into the new year is a mystery.

Symbol: LULU

Dividend: 1.50%

Forward PE: 22; Trailing PE 27;

PEG: 1.66

Estimate Trend: Down

Ransom Note Trendline: Sell Lululemon

LULU Chart

LULU data by YCharts

Stock number two: Ericsson

Peace initiative launched in Mexico with Forest Whitaker, Ericsson, UNESCO, - Thompson-Reuters

Blah, blah, blah, UN, blah, blah, blah, peace…..

Symbol: ERIC

Dividend: 2.5

Forward PE: 14 Trailing PE: NA

PEG: .77

Estimate Trend: Flat

Ransom Note Trendline: Hold Ericsson

ERIC Chart

ERIC data by YCharts

Stock number three: The Wendy's Company

Why Wendy's (WEN) Is Up Today —The

Wendy's Co.(WEN_) was rising 7.6% to $9.09 Monday morning after the fast-food chain offered investors its 2014 earnings forecast that beat analysts' expectations. The Dublin, Ohio-based company projected full-year adjusted earnings of 34 to 36 cents per share, well above the average analyst projection of 29 cents per share. Wendy's also announced that it expects company-owned same-restaurant sales to increase by 2.5% to 3.5% for the full year.

Symbol: WEN

Dividend: 2.4

Forward PE: 31; Trailing PE: 95


Estimate Trend: UP

Ransom Note Trendline: Avoid Wendy’s

WEN Chart

WEN 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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