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.
Trailing PE: NA; Forward PE: NA
Estimate Trend: Flat
Ransom Note Trendline: Sell Emeritus Corp.
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.
Trailing PE: NA Forward PE: 21
Estimate Trend: Flat
Ransom Note Trendline: Hold Groupon
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.
Trailing PE: NA; Forward PE: NA--- Price to book is key: 0.79
Estimate Trend: Up
Ransom Note Trendline: Buy Bank of America