John Ransom

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

Stock number one: Emeritus Corp.

Why Emeritus Corp. Shares Soared--The Motley Fool

What: Shares of Emeritus (NYSE: ESC) skyrocketed as much as 41% after the operator of senior living facilities in the United States agreed to be purchased by Brookdale Senior Living (NYSE: BKD) for $1.4 billion ($2.8 billion including debt).

So what: Under the terms of the deal, which was announced after the closing bell last night, Emeritus shareholders will receive 0.95 shares of Brookdale common stock, valuing the company at $29.58 per share as of this writing.

Symbol: ESC

Trailing PE: NA; Forward PE: NA

PEG: NA

Dividend: NA

Estimate Trend: Flat

Ransom Note Trendline: Sell Emeritus Corp.

ESC Chart

ESC data by YCharts

Stock number two: Groupon, Inc.

Groupon Earnings Outlook Disappoints, Stock Falls- Investor's Business Daily

Daily deals company Groupon's (GRPN) Q1 sales guidance blew away analyst expectations, but the company said its full-year earnings would be only "slightly above" 2013 levels, sending the stock plummeting Friday.

The Chicago-based company late Thursday said it expects current-quarter sales of $710 million to $760 million, or $735 million at the midpoint. Analysts had been modeling $669 million, according to Thomson Reuters.

Symbol: GRPN

Trailing PE: NA Forward PE: 21

PEG: 1.55

Dividend: NA

Estimate Trend: Flat

Ransom Note Trendline: Hold Groupon

GRPN Chart

GRPN data by YCharts

Stock number three: Bank of America

Bank of America Gives CEO a $2 Million Raise- The Motley Fool

Bank of America (NYSE: BAC) announced on Wednesday that its chief executive officer, Brian Moynihan, got a $2 million raise for fiscal year 2013.

The news comes on the heels of yet another positive development for the bank, as a judge in New York refused to throw out an $8.5 billion settlement that Bank of America entered into in 2011. The ruling means the Charlotte-based bank is one giant step closer to fully atoning for its sins from the financial crisis.

But does this progress mean Moynihan deserved a nearly 17% raise? Motley Fool contributor John Maxfield thinks so.

Symbol: BAC

Trailing PE: NA; Forward PE: NA--- Price to book is key: 0.79

PEG:

Dividend: 0.20%

Estimate Trend: Up

Ransom Note Trendline: Buy Bank of America

BAC Chart

BAC 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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