Welcome to John Ransom’s Stocks in the News where the headlines meet the trendlines.
Stock number one: SodaStream International Ltd
Soda Stream sizzles on Starbucks buyout talk—USA Today
SodaStream shares are surging 13% in early trading on a report that the company may be a buyout target of coffee giant Starbucks. SodaStream, which makes carbonated beverage machines that allow consumers to create their own sodas as a greener, cheaper alternative to bottled soft drinks, jumped after Globes, an Israeli business news website, said the company is discussing selling a 10% stake to Starbucks. The report lifted Soda shares $5.39 to $45.82 in noon trading.
Trailing PE: 23; Forward PE: 20
Estimate Trend: Up
Ransom Note Trendline: Buy Soda Stream
Stock number two: The Boeing Company
Faster production brings Boeing $965M 1Q profit—Yahoo Finance
Boeing's increased rate of commercial jet manufacturing is starting to pay off for shareholders. In the first three months of this year, 161 new airplanes rolled off the company's assembly lines — more jets than the same period last year. That increased rate contributed to a $965 million profit for Chicago-based Boeing Co. post in the first quarter.
Trailing PE: 22; Forward PE: 16
Estimate Trend: Up
Stock number three: Elizabeth Arden, Inc.
South Korea's LG Household considers bid for Elizabeth Arden--Reuters
South Korea's LG Household & Healthcare Ltd said it is considering a bid for U.S. cosmetics firm Elizabeth Arden Inc, an acquisition that would give it globally recognized luxury brands and would be its most ambitious to date. Elizabeth Arden's shares rose as much as 17 percent on the Nasdaq on Wednesday. The company, which has a market value of $845 million, has seen its sales hit by a much weaker-than-expected North American retail market as well as deep industry discounting in key European markets that have eroded profit margins. Its shares have fallen 20 percent so far this year.
Trailing PE: 32; Forward PE: 18
Estimate Trend: Down
Ransom Note Trendline: Avoid Elizabeth Arden