John Ransom - Apple Flying
Posted: 6/5/2014 3:18:00 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: Amazon.com Inc.

Amazon gains on June event—MarketWatch

Amazon.com AMZN +6.25%shares advanced 6.8% after the company’s announcement of an event on June 18 to launch a new device prompted speculation that it may unveil a smartphone that would put it in direct competition with Apple Inc. AAPL +0.31%and Samsung Electronics Co. KR:005930 -0.88% .

Symbol: AMZN

Trailing PE: 509; Forward PE: 100

PEG: 6.09

Dividend: NA

Estimate Trend: Flat

Ransom Note Trendline: Avoid Amazon

AMZN Chart

AMZN data by YCharts

Stock number two: Apple

Apple iWatch expected to debut with iPhone 6 this fall--Investor's Business Daily

iWatch is likely to be unveiled with the iPhone 6 in September, reports an analyst attending a major tech show in Taiwan currently underway.

Wearable technology is the major theme at Computex Taipei, where analyst Brian White of Cantor Fitzgerald said information he collected "highlighted that initial production of certain iWatch components is scheduled to begin later this month," with plans for a sharp acceleration into fall.

Symbol: AAPL

Trailing PE: 15; Forward PE: 13

PEG: 0.96

Dividend: 2.10%

Estimate Trend: Up

Ransom Note Trendline: Buy Apple

AAPL Chart

AAPL data by YCharts

Stock number three: Whole Foods Market, Inc

Whole Foods advances after analyst initiates with $48 target--Fly on the Wall

Shares of Whole Foods (WFM) are climbing after research firm Imperial Capital initiated coverage of the shares with an Outperform rating, saying that the recent decline in the stock has created an attractive entry point. WHAT'S NEW: Whole Foods is continuing to gain market share, and its profits can grow at a compound annual growth rate of 12% over the next three years, Imperial analyst Mitchell Pinheiro wrote in a note to investors last night.

Symbol: WFM

Trailing PE: 26; Forward PE: 23

PEG: 1.82

Dividend: 1.30

Estimate Trend: Up

Ransom Note Trendline: Avoid Whole Foods

WFM Chart

WFM data by YCharts

John Ransom - New Time 11:20 AM PT: Get the Market Movements in Advance: William's Edge Webinar for June 5th, 2014
Posted: 6/5/2014 9:15:00 AM EST

Ransom Notes Radio Webinar
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John Ransom - Wow! Look at the Economy the Dems Brought Us!
Posted: 6/5/2014 9:14:00 AM EST

A big miss on private payroll estimates, followed by rising unemployment claims, tell a very different story than the 4% GDP growth that economists were bragging on in the first quarter.

From CNBC:

Initial claims for state unemployment benefits increased 8,000 to a seasonally adjusted 312,000 for the week ended May 31, the Labor Department said on Thursday.

The prior week's claims were revised to show 4,000 more applications received than previously reported. Economists polled by Reuters had forecast first-time applications for jobless aid rising to 310,000 last week.

Despite signs that the economy was in trouble in the first quarter, economists were saying “never mind, things are really beginning to heat up.”

And low and behold, these same economists are trotting out their excuse why hiring isn't as good as 4% GDP growth would indicate.

From USAToday:

The current numbers are now close to levels seen in the years before the recession. From 2004 through 2006. the average for weekly unemployment claims was about 329,000, according to Labor Department data and Haver Analytics.

GDP growth was very uneven from 2004 to 2006 but we were creating enough jobs to keep unemployment at full employment with high labor participation rates.

Today, most economists have been revising their GDP estimates upwards, with some even making the claim that GDP growth for 2014 will come in at about 4% annually.

Instead Quarter One 2014 came in at a 1% contraction, making it the worse quarter since the first quarter of 2011.

People need to remember that most of the economists polled for survey estimates are folks who work for financial services firms that make a living on convincing you that the market will never go down, the economy is never bad and mostly what you need to do is buy now.

People also need to remember that those same financial service firms that have that sell-side bias sponsor most shows in the money media -- at CNBC and Bloomberg, for example.

In fairness however, the market does generally go up. Buying now is usually a good bet as long as you can hold forever.

Michael Schaus - In Other News: Some Things Never Change with Communists
Posted: 6/4/2014 4:00:00 PM EST

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

Today is the 25th anniversary of the pro-democracy protest in Tiananmen Square. Authorities have, apparently, shut down most of Google’s servers in China and ordered a news-blackout. It’s nice to see that some things never change with commies. (Daily Caller)

Obama’s approval numbers have dropped into the 30’s in recent polls. However, among deserters of the US Armed forces and former Gitmo detainees, his numbers remain fairly strong. (The Fox Nation)

Many people have compared Obama to Carter. Victor Davis Hanson went one step further, by suggesting that “Our Future is 1979”… This is bad news. I hate bell bottoms. (NRO)

Chuck Schumer (Idiot-NY) said, “I think if Thomas Jefferson were looking down, the author of the Bill of Rights… he would agree that the First Amendment cannot be absolute.” Ok, two things: A) TJ didn’t write the Bill of Rights. And B) the guy risked his life to help write a nasty letter to King George that basically said “You’re not the boss of me!” I think he’s probably a pretty big fan of free speech. (Washington Times)

Bloomberg’s anti-gun group “Moms Demand Action” has asked Target stores to prohibit customers from carrying guns - which might turn out to be a good idea. After criminals begin robbing the store (just like they did with Jack in the Box, Sonic, etc.) the name “Target” will begin to have meaning. (Breitbart)

Remember how Obama said we had Al Qaeda on the run? Yeah, they’re running alright. They’re running guns, they’re running drugs, they’re running insurgencies, and they’re running one heck of a recruitment campaign… (WSJ)

John Ransom - Solar Mostly Cloudy
Posted: 6/4/2014 3:22:00 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: SunEdison, Inc.

SunEdison to Sell $500 Million in Debt for Solar Acquisitions—Bloomberg

SunEdison Inc. (SUNE), the best-performing U.S. solar company this year, is offering $500 million in convertible debt for acquisitions on three continents. About $350 million to $400 million of the net proceeds will be used on projects and to pay debt on solar farms held by subsidiary TerraForm Power Inc., St. Peters, Missouri-based SunEdison said today in a statement. SunEdison created TerraForm to own and operate renewable power plants.

Symbol: SUNE

Trailing PE: NA; Forward PE: 154

PEG: 0.08

Dividend: 1.10

Estimate Trend: Flat

Ransom Note Trendline: Sell SunEdison

SUNE Chart

SUNE data by YCharts

Stock number two: Nokia Corporation

Don’t Get Too Excited About Nokia Corporation's Recent Map Space Acquisition--Motley Fool

The competition in the space is fierce, and with powerhouses like Google and Apple controlling the lions share of smartphone users, -- especially in the U.S. -- there is very little Nokia can to do entice people to use HERE, let alone find ways to increase its revenue from maps.

Symbol: NOK

Trailing PE: NA; Forward PE: 21

PEG: 0.16

Dividend: NA

Estimate Trend: Up

Ransom Note Trendline: Accumulate This Stupid Finnish Company

NOK Chart

NOK data by YCharts

Stock number three: PHH Corporation

Moody's reviews long-term ratings of PHH Corp. for possible downgrade--Moody's

The rating action follows PHH's announcement of June 2, 2014 that it has entered into a definitive agreement to sell its Fleet Management Services business, PHH Arval, to Element Financial Corporation for approximately $1.40 billion in cash; net proceeds after taxes and transaction expenses are expected to be approximately $750 million to $800 million. Subject to the satisfaction or waiver of various closing conditions, including required regulatory, financing and other contractual consents and amendments, the transaction is expected to close on or before July 31, 2014.

Symbol: PHH

Trailing PE: 37; Forward PE: 22

PEG: -90.73

Dividend: NA

Estimate Trend: Flat

Ransom Note Trendline: Avoid PHH

PHH Chart

PHH data by YCharts

John Ransom - New Time 11:20 AM PT: Get the Market Movements in Advance: William's Edge Webinar for June 4th, 2014
Posted: 6/4/2014 9:26:00 AM EST

Ransom Notes Radio Webinar
Join us for a Webinar on June 4th, 11:20 AM PT
Space is limited.
Reserve your Webinar seat now at:

https://www1.gotomeeting.com/register/278102665

Sign in above to watch as David Williams displays his live market charts showing recent trades and forecasts he has made on Ransom Notes! The audio will still stream through Ransom Notes broadcast and the charts will be viewable through GoToMeeting. By registering for this webinar you agree to receive email announcements and promotions periodically.

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

After registering you will receive a confirmation email containing information about joining the Webinar.
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John Ransom - Inflation, Not the Fed, Determines Interest Rates
Posted: 6/4/2014 9:25:00 AM EST

Quantitative Easing is likely ending in October. That from Dallas Fed President Fisher, who is often the loan monetary hawk at the Fed. From Reuters:

Richard Fisher, one of the Federal Reserve's most ardent policy hawks, said on Tuesday he would favor ending the U.S. central bank's massive bond-buying program in October, but said he does not expect the Fed to start raising interest rates until next year.

"The odds are slim" of a rate rise immediately after the bond-buying program is ended, Fisher, president of the Dallas Federal Reserve, told Reuters in a telephone interview.

"I don't expect we'll raise short-term rates this year," said Fisher, who is a voting member of the Fed's policy-setting committee this year.

That's probably true, but we'll see if the economy cooperates with that scenario. Because while the Federal Reserve can set interest rates lower to try to stimulate the economy, hiking interest rates is a reaction to something bad happening in the economy i.e. inflation.

And guess what? The Fed doesn't get to determine what the inflation rate is.

And we have seen some evidence that the inflation rate is picking up, albeit, not convincing evidence yet. But we rarely see inflation picking up until it's upon us.

It would be ironic that if at the end of QE the money supply created by QE caused inflation to get so out of control that we skipped the whole recovery phase of the economic cycle and went right back to recession.

Ironic, but not totally surprising.

That's always been the concern of guys like Fisher, and frankly myself.

While I think there's some benefit in manipulating interest rates in order to improve the money supply to get the economy going, the policy overhang from politics in Washington as been the most severe drag on the economy. And that's not changing anytime soon.

Fisher's comments are nothing more than informed speculation at this point.

Michael Schaus - In Other News: The Hurricane Gender Gap is Killing People
Posted: 6/3/2014 4:00:00 PM EST

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

The Pentagon is trying to justify the high cost of its environmental projects after their “research” has proven to be wildly inaccurate. Among the many false predictions they made a decade ago: California would be underwater by now… It’s a sad thing when dreams don’t come true, isn’t it? (Washington Times)

Hurricanes named after women are more deadly than hurricanes named after men - I didn’t find this shocking… “Hell hath no fury" and such. The Washington post thinks this is because people are inherently sexist, and therefore don’t take storms with female names as seriously as they should... Divorced men were likely not a part of this study. (Washington Post)

The USDA is spending nearly $2 million to change the eating habits of Americans. The agency is currently accepting grant applications to establish a “Center for Behavioral Economics and Healthy Food Choice Research.”… Anyone else want a burger right now? (Free Beacon)

Dick Durbin is on a crusade to snuff out e-cigarettes because they (apparently) are targeting kids with candy flavors. (Right… Let’s regulate e-cigarette flavors while we completely ignore pot brownies.) Isn’t it about time we start banning politicians from Illinois? (Bloomberg)

The reason we should be skeptical of Bowe Bergdahl, and the Administration’s official story: Susan Rice visited the Sunday talk shows. (Breitbart)

Oh, and by the way, we can get a POW back from the Taliban (by releasing the terrorist dream team from Gitmo), but we can’t get a US Marine released from a Mexican prison? Don’t the cartels “owe one” to Eric Holder for all the guns he gave them? (Fox News)

John Ransom - Dollar General Leads
Posted: 6/3/2014 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: InterDigital, Inc.

InterDigital's Shares Rally On Updated Guidance—Benzinga

In a press release issued Tuesday morning, InterDigital (NASDAQ: IDCC) announced updated guidance for the second quarter of fiscal 2014. The company now expects its total revenue to be in the range of $172 -$210 million, its recurring revenues to be between $72 and $80 million and past sales of $100 - $130 million. Shares of the company have rocketed up over 14 percent following the release.

Symbol: IDCC

Trailing PE: 38; Forward PE: 13

PEG: 4.29

Dividend: 1.10

Estimate Trend: Flat

Ransom Note Trendline: Buy IDCC

IDCC Chart

IDCC data by YCharts

Stock number two: Trinity Industries Inc.

Trinity Industries: The Mobile Pipeline--Seeking Alpha

Trinity Industries is an excellent long term play on the booming production of U.S. Shale Oil. Trinity is poised for robust long term growth from the inevitable build out and modernization of the U.S. rail car fleet to meet the growth in shale oil production.TRN has shown it is committed to an "all of the above" approach to increasing shareholder value, from the substantive recent 33% dividend increase to the psychological 2:1 stock split.

Symbol: TRN

Trailing PE: 12; Forward PE: 12

PEG: 1.16

Dividend: 0.50%

Estimate Trend: Up

Ransom Note Trendline: Buy Trinity

TRN Chart

TRN data by YCharts

Stock number three: Dollar General Corporation

Dollar General Backs Forecast, Expansion Despite Q1--Investors Business Daily

Dollar General (NYSE:DG) slightly missed first-quarter profit and sales forecasts, but the deep discounter rose in the stock market today as it reiterated full-year guidance and said its expansion plans are still on. Reporting before the open, Dollar General posted earnings of 72 cents a share for its fiscal first quarter, which ended in April. That was up from 71 cents the previous year but a penny below consensus views. The specialty discounter blamed severe winter weather and stiff competition.

Symbol: DG

Trailing PE: 18; Forward PE: 14

PEG: 1.09

Dividend: NA

Estimate Trend: Down

Ransom Note Trendline: Avoid Dollar General

DG Chart

DG data by YCharts

John Ransom - New Time 11:20 AM PT: Get the Market Movements in Advance: William's Edge Webinar for June 3rd, 2014
Posted: 6/3/2014 9:15:00 AM EST

Ransom Notes Radio Webinar
Join us for a Webinar on June 3rd, 11:20 AM PT
Space is limited.
Reserve your Webinar seat now at:

https://www1.gotomeeting.com/register/227539472

Sign in above to watch as David Williams displays his live market charts showing recent trades and forecasts he has made on Ransom Notes! The audio will still stream through Ransom Notes broadcast and the charts will be viewable through GoToMeeting. By registering for this webinar you agree to receive email announcements and promotions periodically.

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

After registering you will receive a confirmation email containing information about joining the Webinar.
System Requirements
PC-based attendees
Required: Windows® 8, 7, Vista, XP or 2003 Server
Mac®-based attendees
Required: Mac OS® X 10.6 or newer
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Required: iPhone®, iPad®, Android™ phone or Android tablet