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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Michael Schaus - In Other News: Yeah... Individualism is the Big Problem in America
Posted: 5/27/2014 4:00:00 PM EST

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

Government agencies have, apparently, decided to do away with employee reviews because they could be discriminatory… Because, as we all know, incompetent bureaucrats are a protected class. (Daily Caller)

Obama’s labor secretary tweeted: Don't let individualism trump community; move from a selfie culture to an #ussie culture… Ok. Let’s get rid of all socialists in the Obama administration, not just individual socialists. Better? (Twitchy)

Al Gore wants you to fly to Australia so you can hear him preach about how you need to cut back on your carbon footprint… Have these people never heard about “Go to meeting”? (Weasel Zippers)

Political Correctness taken to Orwellian extremes: The girly-men over at the BBC have censored the word “girl” (used in reference to an actual girl) from a program because it “could have” offended girls… Girl... Girl, girl, girl, girl… (Please send hate mail directly to my twitter account @schausmichael.) (Daily Mail)

Michael Schaus - In Other News: Jack in the Box Needs Bigger "No Gun" Signs (Apparently)
Posted: 5/23/2014 4:00:00 PM EST

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

This is the third armed robbery at a Jack in the Box since the company posted “no guns” signs on it’s properties… They clearly need bigger signs. (The Gateway Pundit)

Paul Ehrlich (yeah… I had to google his name real quick also) doubled down on his climate-change / over-population alarmism by claiming that people will be forced to eat their dead if we don’t start acting more green… (It’s people! Soylent Green is People!) Of course, there is some truth to this: Widespread adoption of liberalism is one of the first signs of the coming zombie apocalypse. (Newsbusters)

PETA wants you to go vegan this Memorial Day weekend. And, to that effect, they have launched an app called “the Scent of Death” to equate meat-eating to murder. As it turns out, murder goes really well with a little corn on the cob, and some PBR. (Breitbart)

50 US Senators have written the NFL requesting that the name of Washington’s team be changed to something less “offensive” than the “redskins”. It’s probably about time we create a reservation in the middle of nowhere for our elected officials. (ESPN)

If you remember, Paul Krugman once praised the VA as a shining example of the success that could be had through socialized medicine… I guess this goes to show that, yes, socialized medicine is full of rationing, fraud, and economically illiterate Nobel Laureate economists. (Weasel Zippers)

Michael Schaus - In Other News: The FBI Wants You to Be Suspicious of Government?
Posted: 5/22/2014 3:48:00 PM EST

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

The FBI chief has said that people should be suspicious of government… I think it’s probably best that we all do exactly as this authority figure as suggested. (The Hill)

A restaurant decided to post a “no concealed carry” outside of their establishment. Strangely, a couple of criminals were not deterred by the polite suggestion. (Townhall)

Around 10k toddlers are being medicated for ADHD… (I always used to think that hyperactivity was merely a symptom of being 4 years old.) Can we maybe start medicating the 535 children who run our government instead? (CBS)

James O’Keefe has tricked some Hollywood big-shots in another one of his undercover “Project Veritas” documentaries… While I’m happy that he’s exposing hypocrisy, let’s be honest: Is it really that hard to dupe a West Coast liberal? I mean, c'mon: They already believe in Global Warming. (Breitbart)