Welcome to John Ransom’s Stocks in the News where the headlines meet the trendlines.
Stock number one: 3D Systems Corp.
3D Systems Stock Sale Signals More Acquisitions—Investor Business Daily
Shares of 3D printer maker 3D Systems tumbled Wednesday after the company announced a secondary public offering of its stock. The Rock Hill, S.C.-based company said Wednesday that it expects to generate gross proceeds of $317 million from the stock offering. 3D Systems (NYSE:DDD) intends to sell 5.95 million shares in the offering this week. It also granted the underwriter, Canaccord Genuity, an option to purchase up to 892,500 additional shares within 30 days.
Trailing PE: 120; Forward PE: 43
Estimate Trend: Up
Ransom Note Trendline: Sell 3D
Stock number two: DSW Inc.
Why DSW Inc (DSW) Earnings Report Spooked Investors--The Street.com
DSW Inc (DSW_) stock is plummeting on Wednesday after the company reported its first quarter below analysts' consensus and guided for full-year profits less than forecasts. By early afternoon, shares had tanked 27.4% to $23.60. The shoe retailer earned 42 cents a share over its April-ending quarter, 6 cents less than what analysts surveyed by Thomson Reuters had forecast. Revenue edged 0.5% higher to $598.95 million, short of analysts' estimates of $622.33 million.
Trailing PE: 14; Forward PE: 11
Estimate Trend: Down
Ransom Note Trendline: Avoid DSW
Stock number three: Sungy Mobile Limited
Mobile Games, SNS Not Ready For Prime Time--Seeking Alpha
Since the IPO, Sungy's shares have gradually lost their luster as broader sentiment toward these Chinese Internet firms has cooled somewhat. The company's shares fell another 9 percent in after-hours trade after it released its first-quarter results, ending at $12.65. That's still above its IPO share price of $11.22, but a far cry from their post-IPO high of nearly $32 reached earlier this year.
Trailing PE: 48; Forward PE:11
Estimate Trend: Flat
Ransom Note Trendline: Sell Sungy
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NEW TIME Today, at 9:30 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for December 17th, 2014 | John Ransom