John Ransom - Avoid This Bounce
Posted: 10/14/2014 1:55:00 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: Intel Corporation

Intel Q3 Earnings Cheat Sheet-- Yahoo

Event:INTC reports its Q3 earnings today after the close . The options market is implying about a 6% one day move, which is slightly above both the 4 qtr avg of about 3.5%, and the 8 qtr avg of about 3.25%.

Sentiment:Wall Street analysts are neutral on the stock, with 22 buys, 25 holds, and 5 sells, and an average 12 month price target of around $35.Even with the recent weakness in the semiconductor sector, INTC is still up 25% year-to-date.Short interest is at a 2 year low, around 2.5% of the float.

Symbol: INTC

Trailing PE: 16; Forward PE: NA

PEG: NA

Dividend: 2.80%

Estimate Trend: Split

Ransom Note Trendline: Avoid Intel

Stock number two: JPMorgan Chase & Co

JPMorgan Swings to Third-Quarter Profit, Misses Estimates--Bloomberg

JPMorgan Chase & Co. (JPM), the biggest U.S. bank, swung to a profit in the third quarter from a loss a year earlier as debt-trading revenue rose and legal costs narrowed. The stock, up 7 cents to $58.23 at 1:08 p.m. in New York, fell as much as 3.6 percent earlier after $1 billion in legal expenses caused earnings to miss some analysts' estimates.

Symbol: JPM

Trailing PE: 15; Forward PE: 10

PEG: 2.34

Dividend: 2.70%

Estimate Trend: Up

Price to book: 1.05

Ransom Note Trendline: Buy JP Morgan Chase

Stock number three: American Airlines Group

Why American Airlines Group (AAL) Stock Is Surging Today--The Street.com

Shares of American Airlines Group(AAL) surged 10.81% to $31.67 in morning trading Tuesday after the World Health Organization said the number of new Ebola cases in the hardest-hit areas is declining.

The WHO reported 8,914 suspected or confirmed Ebola cases and 4,447 resultant deaths. This trend is "relatively flat" at approximately 1,000 new cases per week for the last three to four weeks, according to Bruce Aylward, the WHO assistant director-general who oversees the organization's operations in West Africa.

Symbol: AAL

Trailing PE: NA; Forward PE: 4.63

PEG: 0.11

Dividend: 1.30%

Estimate Trend: NA

Ransom Note Trendline: Avoid American Airlines


Michael Schaus - New Contributor to Townhall Finance: Nick Adams
Posted: 10/14/2014 1:35:00 AM EST

Townhall Finance Welcomes Nick Adams as the most recent contributor!

Nick is an Aussie (not that we should hold that against him) who truly believes in the exceptionalism of America. In fact, he’s been credited with a world-wide resurgence of American-oriented praise. And, let’s face it: It’s well earned. As Nick manages to point out with terse, pointed, prose: America is the home of capitalism and individual liberty.

With an outside perspective of what makes the free market work, and what makes the traditional American system exceptional, Nick is bringing to our pages a refreshing insight. We welcome him to the ranks. (Click here for his articles.)

Oh… And he is a capitalist. So you should check out his website, and buy his book. (Click here.)

Michael Schaus - In Other News: Dems Blame GOP for Ebola - Stupidity is Apparently Contagious
Posted: 10/13/2014 2:12:00 PM EST

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

It was a big day for Obama on Sunday, as he golfed for the 200th time since taking office. Quite the milestone. We should nominate him for another Nobel Peace prize.

(USA Today)

The owner of the Washington Redskins watched the game in the company of Ben Shelly, president of the Navajo Nation… Racists.

(Breitbart)

Finland has ordered the Finnish “Beer and Whiskey Expo” to drop “Whiskey” from its title out of concern that the mention of an alcoholic beverage overtly promotes drinking. Just like that guy who hasn’t yet gone to his first AA meeting, the Finnish government apparently doesn’t think beer should count as an alcoholic beverage.

(Fox News)

Dems are blaming Republicans for the Ebola outbreak because the GOP has fought for spending cuts. I think we should forget about Ebola for a minute, and concentrate on curbing the contagious nature of stupidity.

(Weasel Zippers)

Wait… It gets better: Joy Reid lays blame for the Ebola outbreak at the feet of a “private hospital, in a red state.” See what I mean about stupidity being contagious? I bet Cuba would totally have this Ebola thing under control by now, right Joy?

(The Blaze)

So where is the Surgeon General now that Ebola is showing up in America? Well, the DailyMail is blaming the NRA for holding up his nomination. Another possibility is that his office is a little too busy designing new warnings for cigarettes to worry about a pesky little virus.

(Daily Mail)

John Ransom - Dave & Busters Busts a Move
Posted: 10/10/2014 2:30:00 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: US Ecology, Inc.

US Ecology Set to Join the S&P SmallCap 600-- PR Newswire

US Ecology Inc. (ECOL) will replace Measurement Specialties Inc. (MEAS) in the S&P SmallCap 600 after the close of trading on Monday, October 13. S&P 500 constituent TE Connectivity Ltd. (TEL) is acquiring Measurement Specialties in a deal expected to be completed soon.

Symbol: ECOL

Trailing PE: 26; Forward PE: 22

PEG: 2.36

Dividend: 1.70%

Estimate Trend: NA

Ransom Note Trendline: Sell US Ecology

Stock number two: DAVE AND BUSTER'S ENTERTAINMENT, INC.

Dave & Buster's Surge In Debut--Investor's Business Daily

Dave & Buster's (NASDAQ:PLAY) also priced late Thursday, raising $94 million after offering about 5.9 million shares for 16 each, the low end of the expected range of 16-18. The company operates 70 casual dining and large-game venues in North America, where customers can "eat, drink, play and watch." For the 16 weeks ended Aug. 3, the company reported revenue of $376.2 million, up 17%, and a net loss of $2.4 million.

Symbol: PLAY

Trailing PE: NA; Forward PE: NA

PEG: NA

Dividend: NA

Estimate Trend: NA

Ransom Note Trendline: Avoid Dave & Buster’s

Stock number three: Digital River Inc.

Digital River Sets Date and Time for Third Quarter 2014 Earnings Release--Business Wire

Digital River, Inc. (NASDAQ: DRIV), a leading global provider of Commerce-as-a-Service solutions, announced that it plans to release third quarter 2014 financial results after the close of regular market trading on Wednesday, Oct. 29, 2014.

Symbol: DRIV

Trailing PE: NA; Forward PE: 31

PEG: 3.67

Dividend: NA

Estimate Trend: NA

Ransom Note Trendline: Avoid Digital River

Michael Schaus - In Other News: How Does Something So Big Go Missing? Kim Jong Un's Disappearance Stumps Experts
Posted: 10/10/2014 12:35:00 PM EST

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

Hillary Clinton compared her cabinet position in the Obama Administration to her marriage to Bill. I never would have guessed that a cabinet position could be that gross.

(Free Beacon)

Kim Jong Un hasn’t been seen in public in over a month, fueling speculation about his fate. Judging by his recent weight gain, I think the answer is pretty obvious: They’re having a tough time booking a demolition crew and bulldozer to get Kim out of his bedroom.

(Fox News)

According to Harry Reid’s Democrat Senatorial Campaign Committee, Republican Cory Gardner wants to make birth control illegal. Personally, I was surprised the commercial failed to mention that the Koch brothers control Cory via remote control from Karl Rove’s lair in the Midwest.

(You Tube)

So how is Obama’s campaign against ISIS working out? Well, terrorists have almost seized control of a strategic Kurdish town in Syria; and ISIS is also within shelling range of Baghdad’s airport. So, yeah, it could probably be better.

(CBS News)

Some guy thought it would be funny to joke about having Ebola while he was on a plane… It was funny. Especially when a bunch of guys in hazmat suits showed up to haul his butt into quarantine.

(Fox News)

A manhunt for a cop killer in Pennsylvania has delayed the beginning of deer season. Personally, I think they should let deer season start – and just offer a reward to any hunter that ends up shooting the fugitive.

(Fox News)

Michael Schaus - In Other News: Biden’s Disk Jockey Moonlights as National Security Adviser
Posted: 10/9/2014 12:51:00 PM EST

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

Communist China just overtook the US as the world’s largest economy. Now, given that they’re commies, shouldn’t they be sharing some of that GDP with less fortunate nations?

(Business Insider)

New York City has a record number of homeless people. And a record number of billionaires. Isn’t it curious that such income inequality exists in one of America’s most liberal cities? Good thing they elected that rich guy, Comrade de Blasio… I’m sure he’ll chase the billionaires out of there.

(Huffington Post)

Biden’s National Security Advisor moonlights as a disk jockey under the name “Ph. DJ”... (I really can’t make this stuff up.) Now if we can just give him a personal laugh track, we’ll have the beginning of a comedy troupe.

(Free Beacon)

Students were given extra credit for attending a Joe Biden event. As an added bonus, many of the adult attendees openly laughed at the prospect of a Biden Presidency. In short, most people showed up for an easy "A", or for the free (albeit unintentional) comedy.

(EAG News)

Protesters are taking to the streets again near St. Louis after another black teenager was shot by police… The fact that the 18 year old gang member fired multiple rounds at an off-duty police officer doesn't seem to matter to those level-headed looters and rioters.

(Daily Mail)

Elon Musk recently expressed fear over the possibility of artificial intelligence getting out of hand and leading to a cybernetic revolt against mankind… I am now taking bets on how the world will end: Zombie apocalypse or rise of the machines? (Survivor gets the pot.)

(Vanity Fair)

Michael Schaus - In Other News: Intolerant Judge Refuses to Marry Heterosexuals to Protest Intolerance
Posted: 10/8/2014 12:36:00 PM EST

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

The West Australia Opera has decided to cancel its showing of Carmen because they worry that the 140 year old opera might glamorize smoking. It’s not really “censorship” as much as it’s keeping our kids safe. Because, ya know: those darn kids and their operas are just so impressionable.

(Daily Caller)

Schools in Seattle are getting rid of their swing sets out of a growing fear that, under certain circumstances, kids could get hurt while playing on them. I’m really beginning to wonder how the rest of us ever survived without the over-protective Nannycrats regulating away risk.

(CBS)

A judge in Dallas, who has proven to be an activist in the LGBT community, has announced that she will no longer marry heterosexual couples… Because “intolerance is bad”, or something. I know: The fact that she is responsible for implementing justice figuratively makes the mind boggle.

(Liberty News)

Hawaii councilmen have decided not to name a local beach after President Obama. I suggested that they name it after the Vice President because most people are already used to walking all over Joe.

(Fox News)

An Iraqi was caught sneaking (back) into the US through Canada. For some reason he thought he could just waltz over the border with absolutely no consequences. He was probably holding his map upside down.

(Breitbart)

Michael Schaus - In Other News: Seattle Replaces “Columbus Day” with “Indigenous People’s Day”
Posted: 10/7/2014 12:34:00 PM EST

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

Rather than celebrating history’s most famous lost person on Columbus Day, Seattle will celebrate “Indigenous People’s Day.” After all, what’s so important about an Italian entrepreneur and explorer who managed to single-handedly alter our understanding of the known world?

(Fox News)

A small business owner from Nevada tried to explain to Joe Biden (over lunch) how an increase in the minimum wage would devastate some entrepreneurs. He probably would have had more luck getting the VP to understand the issue if he used Joe’s children’s menu and crayons as visual aids.

(Free Beacon)

There are apparently a lot of people who aren’t aware of the fact that Joe Biden is Obama’s Vice President. But let’s be honest: It’s probably not that big of a deal. After all, I get the feeling that Joe Biden doesn’t know this half the time.

(Free Beacon)

Roughly 40 percent of the GOP disapproves of John Boehner. It’s probably about time we dump Boehner – but we’re going to have to do it gently… I don’t want to see him cry.

(Breitbart)

It turns out that Marijuana might not be healthy for you. According to a new study the drug is addictive, leads to mental health problems, and can even cause cancer… But at least it makes you giggle and snack a lot, right?

(Daily Mail)

John Ransom - Don't Bank on Ebola
Posted: 10/6/2014 2:45:00 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: Becton, Dickinson and Company

Becton, Dickinson Signs $12.2B Deal to Acquire CareFusion-- Zacks

Becton, Dickinson and Company (BDX) entered into a mega $12.2 billion deal to acquire San Diego-based CareFusion Corporation (CFN) in an attempt to create a globally leading entity in the medication management and patient safety solutions market. The agreement, unanimously approved by the boards of both companies, marks the latest multibillion-dollar healthcare sector deal.

Symbol: BDX

Trailing PE: 25; Forward PE: 18

PEG: 2.07

Dividend: 1.90%

Estimate Trend: NA

Ransom Note Trendline: Avoid Becton, Dickinson

Stock number two: Yahoo

Yahoo under fire as Mayer faces critical moment--San Jose Mercury

The combination of a large pile of cash from the stock sale and tepid growth of Yahoo's core business has investors circling. While Yahoo's share price has risen dramatically since Mayer took over, many analysts say that is largely because, until Alibaba went public last week, the only way investors could get a piece of that company was to buy Yahoo stock. Now they can buy Alibaba on the New York Stock Exchange.

Symbol: YHOO

Trailing PE: 36; Forward PE: 33

PEG: 3.16

Dividend: NA

Estimate Trend: Up

Ransom Note Trendline: Sell Yahoo

Stock number three: Chimerix

FDA greenlights emergency drug use for Ebola patients--CNBC

Some people suffering from Ebola may soon receive a drug that could help fight the deadly virus.

Biopharma company Chimerix said Monday that its drug brincidofovir has been approved for emergency use in treating Ebola patients,

The move, which the Food and Drug Administration signed off on, means that people suffering from the disease can be given the pill on a compassionate-use basis if doctors deem it suitable, the company said.

Brincidofovir joins two other experimental antiviral drugs that have already been deployed in the battle against Ebola.

Symbol: CMRX

Trailing PE: NA; Forward PE: NA

PEG: NA

Dividend: NA

Estimate Trend: NA

Ransom Note Trendline: Avoid Chimerix

Michael Schaus - In Other News: Keep Gitmo Open – Let’s Close DC Instead
Posted: 10/6/2014 1:45:00 PM EST

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

Mike Bloomberg was knighted by the British for his business and philanthropic work. Now he’s just waiting on the Vatican to get their act together, and grant him Sainthood. (Wait… Heaven has a ban on high-capacity sodas, right?)

(Telegraph)

Obama quietly scrapped Ebola quarantine procedures a number of years ago because in all seriousness: “what are the odds?”

(Fox News)

“Activists” (in English we generally call these people “looters” and “rioters”) in Ferguson have demanded that authorities bypass a grand jury, and just arrest Police Officer Darren Wilson… I guess due process and a fair trial are just too much for an angry mob to handle.

(NBC News)

Democrat Mark Udall weighed in on whether or not we should close Gitmo: “We can send ‘em back to their countries – no wait, we can keep the terrorists here.” It becomes pretty obvious that he has a very precarious grasp on reality. It also becomes pretty obvious that we would be better off as a nation if we kept Gitmo open, and just closed down DC for a little while instead.

(You Tube)

Leon Panetta is the latest (former) administration official to throw Obama under the bus. Meanwhile, as the Obama Administration continues to sink, the Joe Biden comedy hour keeps on playing:

(Weekly Standard)