John Ransom

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

Stock number one: J.C. Penney

J.C. Penney Shares Notch Biggest Gain in at Least 30 Years --Wall Street Journal

Shares surged as much as 26% Thursday, on track for the biggest one-day percentage gain in at least 30 years, according to FactSet. The rally comes after the struggling department store chain late Wednesday offered a few bright spots in its quarterly report and its 2014 outlook.

Penney posted a profit over the holidays and expects a narrow improvement in sales to persist in the current quarter. The company is trying to claw its way back from a disastrous overhaul that led to a 25% drop in sales and a $985 million loss a year earlier.

Symbol: JCP

Trailing PE: NA; Forward PE: NA

PEG: 0.07

Dividend: NA

Estimate Trend: Flat

Ransom Note Trendline: Sell J.C. Penney

JCP Chart

JCP data by YCharts

Stock number two: Swift Energy Co.

Swift Energy reports EPS in-line, misses on revs; guides FY14 -

Reports Q4 (Dec) earnings of $0.13 per share, in-line with the Capital IQ Consensus of $0.13; revenues fell 7.5% year/year to $146 mln vs the $148.06 mln consensus. This decrease is primarily attributable to lower oil production volumes, coupled with lower oil prices. Swift Energy currently plans to balance its 2014 capital expenditures with its operating cash flow, available bank line and proceeds from announced asset sales and joint venture activity.

Symbol: SFY

Trailing PE: 14 Forward PE: 18

PEG: 1.85

Dividend: NA

Estimate Trend: Partly Cloudy

Ransom Note Trendline: Sell Swift Energy

SFY Chart

SFY data by YCharts

Stock number three: Catamaran Corporation

Catamaran weakness a buying opportunity, says Jefferies- Fly on the Wall

Jefferies expects shares of Catamaran to be under "intense pressure" due to the company's "weak" guidance. The firm recommends buying the stock on weakness saying Catamaran is likely to sustain its strong top-line growth. Jefferies has a Buy rating on the stock with a $70 price target.

Symbol: FB

Trailing PE: 53; Forward PE: 19

PEG: 1.08

Dividend: NA

Estimate Trend: Flat

Ransom Note Trendline: Avoid Catamaran Corporation

CTRX Chart

CTRX 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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