John Ransom

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

Click here to listen to Ransom Notes Radio live or for archives of previous shows.

Stock number one: SodaStream International Ltd

Soda Stream sizzles on Starbucks buyout talk—USA Today

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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.

Symbol: SODA

Trailing PE: 23; Forward PE: 20

PEG: 0.75

Dividend: NA

Estimate Trend: Up

Ransom Note Trendline: Buy Soda Stream

SODA Chart

SODA data by YCharts

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.

Symbol: BA

Trailing PE: 22; Forward PE: 16

PEG: 1.68

Dividend: 2.30%

Estimate Trend: Up

BA Chart

BA data by YCharts

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.

Symbol: RDEN

Trailing PE: 32; Forward PE: 18

PEG: 1.72

Dividend: NA

Estimate Trend: Down

Ransom Note Trendline: Avoid Elizabeth Arden

RDEN Chart

RDEN 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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