John Ransom - Biotech Plays God: Biotech Gives, Biotech Takes Away
Posted: 6/2/2014 3:25:00 PM EST

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: Broadcom

Broadcom rises after plan to explore options for baseband unit—Fly on the Wall

Shares of Broadcom (BRCM), which provides semiconductor solutions for wired and wireless communications, are rising this morning after the company said it will explore strategic alternatives for its cellular baseband business. WHAT'S NEW: Broadcom said it will explore strategic options for its cellular baseband business, including a possible sale or wind-down, and has hired hired JPMorgan (JPM) to assist.

Symbol: BRCM

Trailing PE: 51; Forward PE: 13

PEG: 1.47

Dividend: 1.50

Estimate Trend: Flat

Ransom Note Trendline: Buy Broadcom

BRCM Chart

BRCM data by YCharts

Stock number two: American Realty Capital Healthcare Trust, Inc

Ventas buying ARC Capital Healthcare in $2.6B deal--Associated Press

Real estate investment trust Ventas is purchasing American Realty Capital Healthcare Trust Inc. in a cash-and-stock deal that the companies valued at about $2.6 billion.

The companies each own medical care offices as well as other real estate properties.

Ventas Inc. will pay $11.33 per ARC Healthcare share, a 14 percent premium to its Friday closing price of $9.95.

Symbol: HCT

Trailing PE: NA; Forward PE: NA

PEG: NA

Dividend: 6.80%

Estimate Trend: Flat

Ransom Note Trendline: Sell ARC Healthcare

VALE Chart

VALE data by YCharts

Stock number three: Puma Biotechnology, Inc.

Puma Biotechnology Shares Tumble +25%, Citi Remains Optimistic Despite 'Challenges -- Benzinga

In a report published Sunday, Citi analyst Yaron Werber warns investors of upcoming challenges for Puma Biotechnology (NYSE: PBYI) following the announcement that the phase 2 monotherapy cohort of [investigational drug PB272] … failed to meet its primary endpoint.

ASCO Meeting: PB272 Results

At the American Society of Clinical Oncology (ASCO) 2014 Annual Meeting, Puma announced the “positive” phase 2 results of the company's investigational drug PB272 (neratinib) for the treatment of HER2 positive metastatic breast cancer that has metastasized to the brain. Despite the initial indications of activity, the company announced serious adverse effects from the drug.

Symbol: PBYI

Trailing PE: NA; Forward PE: NA

PEG: 0.81

Dividend: NA

Estimate Trend: Flat

Ransom Note Trendline: Avoid Puma Biotech

PBYI Chart

PBYI data by YCharts

John Ransom - Obama's Way and Means Committee for Russian Aggression
Posted: 6/2/2014 9:14:00 AM EST

Bloomberg News today reports that people inside of Vladimir Putin's inner circle are getting nervous about the economic costs of his territorial ambitions.

As the Russian president plots his next move on Ukraine, investors are giving his inner circle pause for thought. Since Putin annexed Crimea in March in the teeth of international outrage, Russian stocks have become the most volatile since 2009. Swings in the ruble against the euro are now the most extreme on record while expectations for fluctuations in the currency against its emerging-market peers are at the highest in two years.

The article points out that the Russian economy is on the verge of a recession, that the country is too dependent on natural resources for economic development, and that Putin is very, very sorry. Really.

“Putin very clearly got the signal that sanctions had sent,” Vadim Bit-Avragim, who helps oversee about $4.1 billion at Kapital Asset Management LLC in Moscow, said by phone last week. “He realized that it’s better not to aggravate the rest of the world and turn the country into a pariah and lead it to isolation. This won’t benefit him at all.”

Getting past the fact that I don't trust any capitalist who spells capital with a "K," I don't think that we should trust anybody interviewed over the telephone from Moscow.

Putin = KGB.

It wasn't too long ago that investment bankers were getting blown up in the cars are going down in the streets of Leningrad. Not coincidentally, Putin was first deputy mayor in Leningrad.

Prior to the outbreak of the Civil War in the United States, some theorized that the economic consequences would be too severe for the North to actually go to war. Prior to the outbreak of World War II, some theorized that the economic consequences of a war between Britain, Germany, France and Russia would be too severe for any of those countries to go to war with each other. Prior to the outbreak of World War II, some theorized that Hitler would realize the inordinate cost to Germany of this territorial ambitions.

Don't count on the stock market or capital flows to bail out the world for a lack of resolve.

Because make no mistake, it's largely a matter of Putin's resolve to do these things that's more important than anything else.

If he wants to go through with this, he will go through with it, and damn the economic consequences. They'll be short-lived anyways.

That's how dictators see it.

My suspicion is that stories like this from Blooomberg are mean to satisfy the people here at home that something is being done about Putin's aggression, when in fact Obama's acting as a Ways and Means committee for Russian aggression.

Michael Schaus - In Other News: Joe Biden (Still) Doesn't Get it...
Posted: 5/30/2014 4:00:00 PM EST

Here are some other highlights and headlines that I noticed over at Ransom Notes Radio:

Well… Shinseki fell on his sword over the VA Scandal. (Not literally… He would have had to wait too long to get treated.) So, Shinseki stepped down, Obama accepted his resignation, and Joe Biden is still asking why everyone is so worked up about veterinarians. (Fox News)

Obama told West Point grads that they wouldn’t be gearing up for a war with Russia, China, or radical Islam… Nope. They’ll be gearing up for a war against ManBearPig and “global warming”. Obama knows that his “war on coal” isn’t an actual shooting war, right? (Weasel Zippers)

The Orwellian named “Consumer Financial Protection Bureau” is putting together a database to track roughly 227 million social security numbers, credit histories, account balances, and banking information. I really hope they have the Obamacare folks help put this database together. There’s nothing quite as helpful as “one-stop-shopping” for identity thieves. (Washington Examiner)

Here’s a media report on some young (7-10 year old) shooting enthusiasts. Of course the article is a little apprehensive about young kids being taught about firearms… Oh, and (according to the article) it’s all about the NRA making more money. Apparently teaching kids to be safe with guns is just a profit scheme to the world’s largest gun safety organization. (ABC News)

Ezra Klein is an idiot:

Um… Does anyone still take Howard Dean seriously? I mean, I kid around about Joe Biden being an idiot (or being Super Retarded Dog’s politically active twin brother), but Howard Dean might be a bigger moron… Here is Joe Scarborough stumbling through a question – and Dean’s mind numbing answer:

The Best pull quote from the video: Obama’s foreign policy is too sophisticated for you morons in the Media. It’s too bad we can’t all see the brilliance in allowing Putin to annex Crimea; or the brilliance of arming Syrian Islamists while the Middle East collapses into chaos; or the brilliance of allowing the Muslim Brotherhood to take over Egypt, the Taliban to take over Libya, and the Iranians to get their hands on more nuclear technology… It’s a “sophistication” that is apparently beyond you “normal” folks.

John Ransom - 3D Dives on Stock Sale
Posted: 5/30/2014 3:01:00 PM EST

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: 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.

Symbol: DDD

Trailing PE: 120; Forward PE: 43

PEG: 2.99

Dividend: 0.60%

Estimate Trend: Up

Ransom Note Trendline: Sell 3D

DDD Chart

DDD data by YCharts

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.

Symbol: DSW

Trailing PE: 14; Forward PE: 11

PEG: 1.39

Dividend: 2.30%

Estimate Trend: Down

Ransom Note Trendline: Avoid DSW

DSW Chart

DSW data by YCharts

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.

Symbol: GOMO

Trailing PE: 48; Forward PE:11

PEG: 0.62

Dividend: NA

Estimate Trend: Flat

Ransom Note Trendline: Sell Sungy

GOMO Chart

GOMO data by YCharts

John Ransom - Obama, Dem Assault on Households Continues
Posted: 5/30/2014 9:14:00 AM EST

For the second day in a row the Commerce Department released numbers that caught economist off guard and demonstrated once again that all the "happy talk" about the economy is premature. In April consumer expenditures fell rather than rose, as economist widely expected. From Bloomberg:

Household purchases, which account for about 70 percent of the economy, dropped 0.1 percent, the first decrease in a year, after a revised 1 percent gain the prior month that was the strongest reading since August 2009, Commerce Department figures showed today in Washington. The median forecast of 77 economists in a Bloomberg survey called for a 0.2 percent April rise. Incomes advanced 0.3 percent after climbing 0.5 percent.

And since they can't blame the weather in April, what's the rationale to explain how they missed the decline in consumer spending? They blame the weather of course-- again.

Economists are saying the pent-up demand in March--because of the terrible winter weather prior to that-- skewed the numbers upward, and that in April we are just coming back to a more realistic spending pattern.

“A lot of pent-up activity took place in March and now we’re coming back to more normal levels of spending,” said Stephen Stanley, chief economist at Pierpont Securities LLC in Stamford, Connecticut. Stanley was one of economists who correctly predicted the decline. “The risk at this point is that the consumer is falling back into a pattern of mediocre spending growth.”

And herein we see the problem: I don't know what alternate reality economist live in, but certainly a 1/10% drop in consumer spending isn't mediocre spending growth. Either Stanley or I have the math wrong here. So if I carry the 2, divide by 13, use only whole numbers... yes: a drop in consumer spending is STILL the opposite of growth.

Yesterday on Ransom Notes Radio we ran a clip of Mike McKee, the eternal optimist for Bloomberg, talking about how the numbers indicated that we could be looking at 4% annual growth in GDP this quarter. Of course I made fun of him, and today it's hard for me to see how these consumer spending numbers would be consistent with that type of robust GDP growth. We have yet to see sustained economic growth under the Obama administration. We have yet to see sustained economic growth under the Obama administration. At this point if you reassembled the Carter administration, even the dead members, it would have a better chance of turning around this economy around.

The bond market is telling us that this economy is in trouble. Stock markets do rally during recessions. And inflationary pressures are beginning to heat up a little bit.

Get ready for stagflation. Oh, wait, it's already here.

At what point do Democrats start to scramble for self-preservation? Because if the pattern holds true, this economy is going down not up. Quantitative Easing, at least in the short term, made up a bit for all of the policy initiatives from Democrats that killed jobs.

Those days are over, as even the liberals at the Fed have indicated.

John Ransom - Popeyes Pops
Posted: 5/30/2014 9:13:00 AM EST

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: Popeyes Louisiana Kitchen, Inc.

Popeyes Louisiana Kitchen backs long-term guidance—Fly on the Wall

Popeyes Louisiana Kitchen reaffirms that over the course of the upcoming five years, the company will deliver SSS growth of 1%-3%; net unit growth of 4%-6%; and EPS growth of 13%-15%.

Symbol: PLKI

Trailing PE: 31; Forward PE: 20

PEG: 1.38

Dividend: NA

Estimate Trend: Flat

Ransom Note Trendline: Buy Popeyes

PLKI Chart

PLKI data by YCharts

Stock number two: Renewable Energy Group, Inc.

Renewable Energy Group Announces Proposed Public Offering of $125 Million of Convertible Senior Notes--Business Wire

Renewable Energy Group, Inc. (REG) (REGI) announced today that it intends to offer, subject to market and other conditions, $125 million aggregate principal amount of convertible senior notes due 2019. In connection with the offering, REG expects to grant the underwriters an option to purchase up to an additional $18.75 million aggregate principal amount of such notes to cover over-allotments, if any.

Symbol: REGI

Trailing PE: 3; Forward PE: 9

PEG: 3.47

Dividend: NA

Estimate Trend: Flat

Ransom Note Trendline: Sell Renewable Energy Group

REGI Chart

REGI data by YCharts

Stock number three: JinkoSolar Holding Co.

JinkoSolar Q1 Earnings Miss Ests--Zacks

JinkoSolar Holding Co. Ltd. (JKS) reported first quarter 2014 results with adjusted earnings per American Depositary Share (ADS) of 20 cents (adjusted earnings of 5 cents per share), much lower than the Zacks Consensus Estimate of 41 cents. The company, however, reversed its year-ago adjusted loss per ADS of 56 cents (adjusted loss of 14 cents per share) in the reported quarter. Each “ADS” represents four ordinary shares.

Symbol: JKS

Trailing PE: 23; Forward PE: 6

PEG: 0.10

Dividend: NA

Estimate Trend: Up

Ransom Note Trendline: Sell JinkoSolar


JKS Chart

JKS data by YCharts

Michael Schaus - In Other News: Dick Cheney is a Big Softy, and Barack Obama is a Big Weakling
Posted: 5/29/2014 4:01:00 PM EST

Here are some other highlights and headlines that I noticed over at Ransom Notes Radio:

Google has an abysmal record on diversity. (Ah… So that’s why Google’s background is white.) (USA Today)

The San Fran PD has been placing “bait bikes” around the city to catch would-be bike thieves. Some people (who claim to be unaffiliated with bike thieves) say that the bait bikes are unfairly targeting poor people… Yeah. The program is really unfair to poor people who try to take someone else’s property (AKA: Democrats). (SF Gate)

New Orleans has given up on Public Schools, and will be moving to a charter program for next year… Critics say that the charter program will place an undue burden on parents. (Stupid “choice”… It makes freedom so burdensome!) (Washington Post)

All of my faith in humanity has just been lost… Apparently the South won the Revolutionary War (which we fought against the French) right before the Germans bombed Pearl Harbor. (Fox Nation)

Dick Cheney (the big softy) said that Obama is the weakest President in his lifetime. This came right after the President rejected Cheney’s offer to take him hunting. (Fox Nation)

John Ransom - Blame Obama for this pathetic, stupid economy
Posted: 5/29/2014 9:50:00 AM EST

Scroll down for Williams Edge Webinar

So the new revisions are in for GDP and it turns out that the first quarter we had a contraction of 1% versus an estimate of one 10th of a percent growth.

"GDP growth was initially estimated to have expanded at a 0.1 percent rate," reports Reuters. "It is not unusual for the government to make sharp revisions to GDP numbers as it does not have complete data when it makes its initial estimates. The decline in output, which also reflected a plunge in business spending on nonresidential structures, was sharper than Wall Street's expectations for a 0.5 percent contraction pace."

Reuters went on to explain to anybody stupid enough to believe it that weather chopped off about 1.5% from GDP. And that means that were it not for the weather the economy would've only grown by half a percent annual rate in the first quarter. And that means that the economist weren't just wrong about the impact of the weather, that they were wrong about the robustness of the economy going into the first quarter.

Can we all just agree that Obama sucks now?

If it walks like it sucks, talks like it sucks, it sucks.

Michael Schaus - In Other News: English Must Not Be Al Sharpton's First Language
Posted: 5/28/2014 4:00:00 PM EST

I just want to make sure I understand what is going on here: We have pledge “non-lethal” aid to Ukraine, but we’re giving Syrian Islamists high-powered rocket launchers and fully automatic assault rifles? Are we at least running background checks on these gun transfers (or is that a burden we only place on legal American gun sales)? (The Hill)

Hawaii wants a race-based legal system. And our post racial President has suggested he will help give it to them. (Fox News)

Did we actually win in Afghanistan? Meh. Who cares, so long as Obama gets an applause line in future speeches? (CNS News)

The National Science Foundation spent roughly $5 million on fictional depictions of what the world would look like in 2070 (because of global warming)… A utopian future was described, in which courts forcibly take private property from the wealthy, no one owns a car, everyone is a vegetarian, and modern consumerism is dead… In other words: The liberal utopia looks an awful lot like Europe did in 200 BC. (Now that’s “progress”!) (Free Beacon)

Also…I’m beginning to think that English is not Al Sharpton’s first language.

John Ransom - New Time 11:20 AM PT: Get the Market Movements in Advance: William's Edge Webinar for May 28th, 2014
Posted: 5/28/2014 12:01:00 AM EST

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