John Ransom - Would You Buy a Russian Company Called Vimpel?
Posted: 1/29/2014 12:34:00 PM EST

Welcome to John Ransom’s Stocks in the News where the headlines meet the trendlines for January 28th:

Stock number one: Rent-A-Center, Inc..

Rent-A-Center plunges after 'most challenging December in years' dings profit- Fly on the Wall

Rent-to-own operator Rent-A-Center (RCII) is one of today's losers after the company's fourth quarter results and fiscal 2014 profit guidance fell significantly below expectations. WHAT'S NEW: Last night, Rent-A-Center reported fourth quarter earnings per share of 25c and revenue of $769.6M, compared to analysts' consensus estimates of 75c and $787.95M, respectively. Same-store sales declined 1.1% for the company in the quarter.

Symbol: RCII

Trailing PE 8.64; Forward PE: 7.27

PEG: 0.81

Dividend: 3.00%

Estimate Trend: Down

Ransom Note Trendline: Sell Rent-A-Center

RCII Chart

RCII data by YCharts

Stock number two: VimpelCom Ltd.

Russian mobile firm Vimpelcom slashes dividend, spooking investors

- Reuters

Vimpelcom, Russia's third biggest mobile operator, said it would slash its dividend to pay down debt piled up in an aggressive expansion drive, marking an unexpected policy shift that spooked shareholders. Vimpelcom's expansion into Africa, Asia and continental Europe left the group with more than $20 billion in debt, according to its latest quarterly results.

Symbol: VIP

Trailing PE: 8.42 Forward PE: 8.57

PEG: 3.24

Dividend: 7.8% from 13.7%

Estimate Trend: Down

Ransom Note Trendline: Sell Vimpelcom

VIP Chart

VIP data by YCharts

Stock number three: Corning Inc.

Corning Shares Slide on Forecast for Price Drop in LCD Screens - Fly on the Wall

Corning Inc. (GLW) tumbled the most in more than a year after projecting price declines for LCD, the display technology used in televisions and computer monitors.

Corning shares fell 6.1 percent to $17.11 at 12:05 p.m. in New York. The stock had dropped as much as 9.2 percent earlier in the day, the most since October 2012. After gaining 41 percent in 2013, Corning had been up 2.2 percent this year through yesterday.

Symbol: GLW

Trailing PE: 14.21; Forward PE: 11.28

PEG: .88

Dividend: 2.20%

Estimate Trend: Down

Ransom Note Trendline: Avoid Corning

GLW Chart

GLW data by YCharts

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Nick Sorrentino - Newport Beach’s $100,000 Lifeguards Feel Pension Squeeze
Posted: 1/16/2014 9:44:00 AM EST

I grew up in Virginia Beach, the largest beach town in America, and I think guards there make something in the $10-$15/hr range. If that.

I am giving the California life guards a bit of a hard time. Surf rescue can be a deadly serious business and there is quite a lot of responsibility associated with the job. Lord knows these guys do more work than a lot of administrators back in City Hall who are probably paid even more. But retiring at 50 with a $100K pension? Can’t go for that.


Newport Beach’s wealth masks the municipality’s self-inflicted fiscal problems, said Orange County Supervisor John Moorlach, a former county treasurer whose district includes the city. Full-time lifeguards hired before November 2012 are eligible to retire with full pensions when they turn 50. The city has the highest per-capita unfunded liability among Orange County’s 34 municipalities, Moorlach said. Eight city lifeguard managers made more than $100,000 in 2012, according to compensation data on state Controller John Chiang’s website. In all, 357 of the city’s 1,234 employees were paid more than $100,000 that year, the data show.

Click here for the article.

For more see Against Crony

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Mike Shedlock - Singapore Set for Icelandic-Style Property Bubble Meltdown; Hype or Reality?
Posted: 1/16/2014 9:41:00 AM EST

Several people sent me emails regarding a economic pending bust in Singapore.

Given that it's easy enough to accept or discard such ideas based on preconceived notions, I asked a friend who lives in Singapore for his comments.

First, please consider the article Why Singapore's Economy Is Heading For An Iceland-Style Meltdown.

Like Iceland in its heyday, Singapore’s economic stability and vitality – on the surface at least – has made it the envy of the world at a time when most Western economies are languishing with feeble growth, and high rates of unemployment and poverty. Singapore’s booming finance and real estate-focused economy has earned it the moniker “The Switzerland of Asia”, and finance professionals from all over the world are flocking to work there to take refuge from the hard-hit financial sectors in their home countries. Singapore’s unemployment rate is a mere 1.8 percent even as the country’s red hot construction sector has been attracting overseas workers, and a growing number of wealthy citizens are hiring domestic helpers from neighboring countries like the Philippines and Indonesia. The ranks of Singapore’s wealthy are growing rapidly thanks to the country’s asset bubbles, which is helping to fuel a luxury consumption boom in everything from high-end apartments to exotic supercars.

Even though Singapore is no longer an emerging market nation, I consider its bubble economy to be part of the overall emerging markets bubble that I have been warning about due to its strategic role and locationin Southeast Asia, which is also known as ASEAN (Association ofSoutheast Asian Nations). My recent reports on Malaysia, Thailand, the Philippines, and Indonesia show that the entire region is caught up in a massive bubble, and Singapore is benefiting from this bubble by acting as ASEAN’s financial center.

Extremely low interest rates in the West and Japan, combined with the U.S. Federal Reserve’s multi-trillion dollar quantitative easing or QE programs resulted in a $4 trillion torrent of speculative “hot money” that flowed into emerging market investments from 2009 to 2013. An international carry trade arose in which investors borrowed significant sums of capital at rock-bottom interest rates from the U.S. and Japan, and directed the proceeds into high-yielding emerging markets assets with the intention of profiting from the difference in interest rates or the spread.

Hot money inflows, combined with central bank policies that allow currency appreciation to temper inflation, have contributed to an approximate 22 percent increase in the value of the Singapore dollar against the U.S. dollar since the financial crisis:

Foreign direct investment (net inflows, current dollars) into Singapore immediately surged to new highs after the financial crisis:

Why Singapore Has A Dangerous Credit Bubble

Like many countries that have experienced economy-wide bubbles and busts – including the U.S. from 2003 to 2007 – Singapore currently has a ballooning credit bubble that is helping to drive economic growth and create an illusion of prosperity. Ultra-low interest rates are the primary reason why credit bubbles inflate in the first place, and Singapore’s bubble is no exception to this pattern.

An idiosyncrasy of Singapore’s interest rate policy makes their low interest rate-fueled credit bubble particularly acute: Singapore’s benchmark interest rate, known as the Singapore interbank offered rate or SIBOR, is tied to the U.S. Fed Funds Rate for the purpose of minimizing large swings in the U.S. dollar-Singapore dollar exchange rate.

Unfortunately, there are extremely dangerous side-effects of Singapore’s interest rate policy ever since the U.S. Federal Reserve has pursued its zero interest rate policy, or ZIRP, after the financial crisis in 2008. Near zero interest rates, which are intended to boost depressed economies like the U.S.’, are much too low for fast-growing economies like Singapore’s.

Hype or Reality?

There is much more to the article, but what appears above is sufficient to understand the claim.

While I do not have firsthand knowledge regarding Singapore, one of my regular contacts "SS" lives there. I sent "SS" the above link and asked about his views.

He responded ...

Hello Mish

It's very funny you should have sent me this. Not ten minutes ago I read the attached article in the daily paper refuting the exact same article that you sent.

Unfortunately, your article is accurate and the daily paper is delusional.

When I arrived in Singapore in 2009 and secured a realtor to help me find an apartment, he told me that Asians were coming from all over the continent with large wads of cash in hand, begging him to find some property. Anything. Anywhere. All they wanted was some property in Singapore to invest in.

Eventually I found an apartment, 1,800 sq ft, with a $4.8 million appraised value! (It's probably really worth about $750,000 max). I had to pay $9,800 per month in rent!

When the Asian meltdown comes, it will be catastrophic for prices of everything in Singapore. And I think it's teetering on the precipice.

Hope that answers your question!

Mike "Mish" Shedlock

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John Ransom - Speculative Tech Stocks Day
Posted: 1/16/2014 9:38:00 AM EST

Welcome to John Ransom’s Stocks in the News where the headlines meet the trendlines:

Stock number one: Twitter, Inc.

Twitter: What Now?- Seeking Alpha

It's been a wild ride for shareholders of social media darling Twitter (TWTR). As 2013 ended and 2014 started, Twitter was one of the most talked about names on the street, and one of the biggest movers. Now that things have calmed down a little, it's time to take another look at Twitter.

Note: 10 percent short interest; small float that trades every 12 days.

Symbol: TWTR

Trailing PE NA; Forward PE: NA


Dividend: NA

Estimate Trend: Flat

Ransom Note Trendline: Avoid Twitter

TWTR Chart

TWTR data by YCharts

Stock number two: Facebook

Facebook's Teen Users Down 25% During the Past 3 Years- Motley Fool

A new study shows Facebook's (NASDAQ: FB) teen problem in the U.S. may be worse than previously thought. The study from iStrategyLabs shows self-reported teen users have fallen by 25% during the past three years, while self-reported users in college are down nearly 60%! Read on to find out more.

The question of teens leaving Facebook has been a hot topic this year, as multiple surveys have shown teens losing interest in Facebook. Investors are worried that this could be the start of a larger trend.

Symbol: FB

Trailing PE: 148 Forward PE: 51

PEG: 2.11

Dividend: NA

Estimate Trend: UP

Ransom Note Trendline: Hold Facebook

TWTR Chart

TWTR data by YCharts

Stock number three: Tesla Motors, Inc.

Tesla sales electrify—Wall Street Journal

Tesla (TSLA) surged in early trading after the company revealed it sold 6,900 Model S sedans last quarter. The company also increased its fourth quarter guidance by 20%.

Note: From the Tesla press release: “Tesla’s highest sales per capita are in Norway and the individual customer who owns the most cars lives in Narvik, which is above the Arctic Circle.”

Symbol: TSLA

Trailing PE: NA; Forward PE: 111

PEG: 12.71

Dividend: NA

Estimate Trend: Down

Ransom Note Trendline: Avoid Tesla

TSLA Chart

TSLA data by YCharts

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Phillip  Bartling - Double Bubble
Posted: 1/14/2014 9:28:00 PM EST

Were Shakespeare alive today, he might be tempted to stage the setting of Macbeth on Wall Street, or perhaps within the confines of the Federal Reserve.

For much as The Three Witches in Macbeth worked their dark magic on the mortals around them, concocting a toxic brew consisting partly of “Root of hemlock digg’d i’ the dark” and “liver of Blaspheming Jew”, so do our control-freak central economic planners attempt to impose their will on market forces.

A stimulus here, a series of Quantitative Easing there, the spell is ongoing. The result is a build-up of both inflationary and deflationary pressure, with an uneasy equilibrium holding sway.

As the pressure mounts with each market cycle and each new ingredient tossed into the cauldron, the balance gets harder and harder to maintain. Even big corrections in the markets only vent enough steam to temporarily stave of the inevitable event that will take place when either the inflationary or deflationary pressure reaches critical mass and overwhelms its counterpart.

Which is why you hear so much about “asset bubbles”—they are the most obvious signs and symptoms of the equilibrium slipping away.

According to Sharmin Mossavar-Rahmani, chief investment officer for Goldman Sachs investment strategy group, “We don’t have bubble troubles yet.”

Mossavar-Rahmani may not be worried about bubble troubles, but I certainly am. Not a bubble in the stock market, that’s not the issue, nor a real-estate bubble or even a bond market bubble. The bubble to watch is a double-bubble, and it definitely spells toil and trouble for the US economy—it’s the cash/debt bubble.

The bad news is there’s a lot of debt out there. The US Government debt alone has grown almost exponentially, from2 trillion, to 4 trillion, to 8 and then quickly now to over 17 trillion dollars.

If that doesn’t classify as a bubble, then I don’t know what does. And that’s not to mention consumer and business debt.

The good news is that there is also a lot of cash out there.

So far, so good; there’s a lot of debt, but also a lot of money out there to cover it.

The really bad news however, is the disconnect between the cash and the debt—the people and entities with the cash aren’t the ones who owe the debt. That’s a serious problem.

Look for example at company like Apple Inc. , which pays little to no taxes while at the same time accumulating a massive hoard of cash, estimated at between 100 and 200 billion dollars.

And that’s just one company.

It doesn’t take a genius to figure out that if all the money is getting sucked up by people and entities that don’t owe the debt, that’s just not sustainable.

And the really sick part is how Obama and his money people seize on this truth and twist it with populist rhetoric about “spreading the wealth around” on the one hand, while on the other they keep accelerating the policies and practices that have led to the concentration of wealth in the first place.

There is a simple and 100% effective way to balance this out before it’s too late, and inflation or deflation breaks through the opposing force causing a true meltdown and not just a painful correction; it’s called free-market capitalism.

President Obama acknowledged—and then dismissed—that theory in his masterpiece of propaganda, the speech delivered in Kansas on December 6, 2011.

In that speech, Obama performed several miracles. For one, he was somehow able to liken himself to Teddy Roosevelt; if you follow his reasoning down the garden path, Barack and Teddy are kindred spirits; patriotic and populist visionaries unfairly branded as radical socialists, both fighting the good fight against the sinister, greedy capitalists.

Which lays the groundwork for another Obama miracle, re-writing history.

“But here’s the problem” Said President Obama. “It (Free markets/Capitalism) doesn’t work. It has never worked. (Applause.) It didn’t work when it was tried in the decade before the Great Depression. It’s not what led to the incredible postwar booms of the ‘50s and ‘60s. And it didn’t work when we tried it during the last decade. (Applause.) I mean, understand, it’s not as if we haven’t tried this theory.”

I commend president Obama for his public speaking skills, his incredible power to persuade. He can make some people believe anything, that Teddy Roosevelt was really a communist, that spending more money is the way to deal with a debt crisis, that it wasn’t capitalism that made the United States the richest most powerful nation on earth.

President Obama is a genius at saying things people agree with, where he intends a different meaning from that which most of his audience understands. You see, President Obama is sincere about “spreading the wealth around”, the only problem is, he doesn’t mean share the wealth of rich Americans with poor Americans, he means share the American wealth with the rest of the world.

Something wicked this way comes? Why wait for it to get to us, let’s rush to it! Lead on, MacDuff!

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Nick Sorrentino - While economic freedom declines in the US, it rises across the globe
Posted: 1/14/2014 9:25:00 PM EST

The wealth of nations has increased by astronomical amounts over the last 2 decades. Literally billions of people have been brought out of poverty thanks to economic freedom. It is as if once the Soviet Union died, once the scourge of international socialism was utterly and completely decimated both economically and intellectually, humanity couldn’t help but lurch forward.

The Berlin Wall "death strip."

The Berlin Wall “death strip.”

Actually that is what happened.

Sadly we have gone in the opposite direction over the last 2 decades. Instead of freeing our economy we have wrapped it ever more in welfare state red tape. We have regulations on top of regulations on top of regulations. We make it harder for businesses to start. We make it harder for businesses to hire. We promise completely unrealistic pensions to government workers which are paid for by workers and businesses and crush the finances of our great cities. We nationalize car companies. We bail out banks which should be dead. Our government picks winners and losers of all kinds in the economy (and is almost always wrong – at great cost). In short, the United States which for so long was a beacon of liberty and economic freedom has dimmed dramatically. A system of crony capitalism has taken hold. The state (often the corporate state) is ubiquitous.

We must again embrace liberty and economic freedom. This is the way to an American Renaissance. We can again lead the world. We can again be a source of hope to the world.

You know, REAL hope.

(From The Wall Street Journal)

It’s not hard to see why the U.S. is losing ground. Even marginal tax rates exceeding 43% cannot finance runaway government spending, which has caused the national debt to skyrocket. The Obama administration continues to shackle entire sectors of the economy with regulation, including health care, finance and energy. The intervention impedes both personal freedom and national prosperity.

But as the U.S. economy languishes, many countries are leaping ahead, thanks to policies that enhance economic freedom—the same ones that made the U.S. economy the most powerful in the world. Governments in 114 countries have taken steps in the past year to increase the economic freedom of their citizens. Forty-three countries, from every part of the world, have now reached their highest economic freedom ranking in the index’s history.

Click here for the article.

This post reprinted from Against Crony Capitalism

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Mike Shedlock - Five Housing Headwinds; Mortgage Originations Lowest Since 2010; Refinancible Loan Percentage Collapses
Posted: 1/14/2014 9:23:00 PM EST

Black Knight Financial Services, formerly LPS, released its latest Mortgage Monitor Forecast.

Key Highlights

  • Mortgage originations are at the lowest levels in almost four years
  • Prepayment/refi activity indicates another drop coming
  • Higher interest rates slow refinance activity
  • Quality of loans originated in 2013 have made it the best performing vintage on record.
  • Home equity originations are up significantly since a year ago: total HE lending is up 70%, while volume on 2nd mortgages has more than doubled
  • Population of “refinancible” loans continues to shrink - Only 5.9M loans meet broadly defined criteria for refinancing, down 4M since December 2012.
  • Delinquencies continue to rise among HELOCs that began amortizing
  • High risk of “payment shock” in the coming three years

Here are some charts.
Anecdotes in red are mine. Click on any chart for sharper image.

Origination Volume Lowest Since 2010

Refi Activity Collapses with Rising Rates

2013 Best Vintage on Record

Home Equity Loans Up

Refinancible Loan Percentage Collapses

Payment Shock on HELOCs

Key Takeaways

Performance on 2013 origination is at record highs because of record low interest rates coupled with rising home values.

If home prices stagnate or rates continue to rise, this could be as good as it gets. The Fed is fighting majorheadwind battles.

Five Headwinds

  1. Rising rates
  2. Slowing economy
  3. Reduced values because of rising rates
  4. Reduce values because of rising home prices
  5. Demographics of retiring and downsizing baby boomers

Some may dispute point number 2.

Regardless, I think this is as good as it gets. If the economy does not slow (extremely doubtful in my opinion), rates will rise, further collapsing values.

If the economy slows, demand for housing will slow with it. This may seem circular, and it is. But it all depends on where we are in the cycle. A "recovery" since 2009 is pretty long in the tooth, historically speaking.

Even with the alleged recovery, originations are back to 2010 levels. What happens if the recovery falters?

Values are already extremely distorted by Fed activity and all-cash purchases by the likes of Blackrock and equity funds.

Home equity extraction is likely to decline as is the stock market. Those are my opinions, but they are backed up by valuation metrics and extreme sentiment including a bubble belief the Fed can do no wrong.

Mike "Mish" Shedlock

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John Ransom - Don't Bank on Banks
Posted: 1/14/2014 9:19:00 PM EST

Welcome to John Ransom’s Stocks in the News where the headlines meet the trendlines:

Stock number one: Bank of America Corporation

Bank of America's Cost Cutting Will Face Scrutiny- Yahoo Finance

Bank of America (BAC_) is set to report earnings Wednesday morning, and once again the focus will be on how well the bank is doing at cutting expenses.

Analysts are looking for the bank to earn 27 cents per share, compared to 28 cents during the third quarter and 29 cents during the fourth quarter of 2012.

"We doubt that weak Q4 results will have a significant impact on share prices with investors far more focused on core earnings trends for the year ahead," argued Atlantic Equities analyst Richard Staite in a Dec. 19 preview of the banking sector.

Note: Price to book: 0.80

Symbol: BAC

Trailing PE 25; Forward PE: 13

PEG: 1.11

Dividend: 0.20%

Estimate Trend: Flat

Ransom Note Trendline: Buy Bank of America

BAC Chart

BAC data by YCharts

Stock number two: JP Morgan Chase

The end of the mortgage party? Home lending plummets at Wells Fargo, J.P. Morgan Chase, - MarketWatch

The mortgage party is officially over.

Rising mortgage rates mean that fewer people are refinancing their homes, which bludgeoned fourth-quarter mortgage results at Wells Fargo & Co. WFC +0.42%and J.P. Morgan Chase & Co. JPM +0.40% , the country’s leading residential lenders, according to earnings reports released early Tuesday.

Note: Price to Book: 1.11

Symbol: JPM

Trailing PE: 13; Forward PE: 10

PEG: 2.20

Dividend: 2.6

Estimate Trend: Down

Ransom Note Trendline: Hold JP Morgan Chase

JPM Chart

JPM data by YCharts

Stock number three: Wells Fargo

Wells Fargo’s Mortgage Business Sputters —Wall Street Journal

Wells Fargo, the largest mortgage lender in the U.S., saw profits for its mortgage lending division drop by 49% from the fourth quarter of 2012 to $1.6 billion. The bank’s home-lending originations totaled $50 billion, compared with the $125 billion a year earlier and $80 billion in the previous quarter.

Note: Price to Book: 1.57

Symbol: WFC

Trailing PE: 12; Forward PE: 11

PEG: 1.34

Dividend: 2.6

Estimate Trend: Up

Ransom Note Trendline: Avoid Wells Fargo

WFC Chart

WFC data by YCharts

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Mike Shedlock - When Will Interest on US National Debt Exceed $1 Trillion? When Will the Fed Hike Rates?
Posted: 1/13/2014 8:35:00 PM EST

With all the talk of tapering and expected hikes in interest rates by the Fed, inquiring minds are likely interested in what happens to interest on the national debt if the Fed ever does hike.

I asked my friend Tim Wallace to graph that idea. The following charts from Wallace provide a clear answer.

In these charts we make the assumption that the Congressional Budget Office (CBO) is accurate in its assessment of future budget deficits.

Neither Wallace nor I believe those estimates, nor do we believe the Fed is going to be in a position to tighten when they suggest they might, but here are the charts for discussion.

National Debt Trendline

Projected Interest at Various Rates

Hidden Agenda

The current blended rate of interest on the national debt is a mere 2.4% according to the CBO.

The "optimistic" projection of $668 billion assumes the rate will stay below 3.1% through 2020.

With that in mind, please consider the Fed's 'hidden agenda' behind money-printing.

One of the most important reasons the Fed is determined to keep interest rates low is one that is rarely talked about, and which comprises a dark economic foreboding that should frighten us all.

Let me start with a question: How would you feel if you knew that almost all of the money you pay in personal income tax went to pay just one bill, the interest on the debt? Chances are, you and millions of Americans would find that completely unacceptable and indeed they should.

But that is where we may be heading.

But isn't it fair to ask what the interest cost of our debt would be if interest rates returned to a more normal level? What's a normal level? How about the average interest rate the Treasury paid on U.S. debt over the last 20 years?

That rate is 5.7percent, not extravagantly high at all by historic standards.

Do the math: If we were to pay an average interest rate on our debt of 5.7 percent, rather than the 2.4 percent we pay today, in 2020 our debt service cost will be about $930 billion.

Now compare that to the amount the Internal Revenue Service collects from us in personal income taxes.

In 2012, that amount was $1.1 trillion, meaning that if interest rates went back to a more normal level of, say, 5.7 percent, 85 percent of all personal income taxes collected would go to servicing the debt. No wonder the Fed is worried.

The above article did not show the charts, but we just did.

Shifting Goalposts

Really think the Fed is going to hike? They know they can't, and the Fed is disingenuous as to why.

A year ago the Fed was discussing 6.5% as a trigger point.

In December, the Wall Street Journal noted the Fed’s Shifting Unemployment Guideposts

Now, in the wake of a massive collapse in the labor force in which unemployment rate just dropped to 6.7% it's easy to understand why the goalposts shifted.

The Fed pretends its interest rate policy is about a dual mandate of jobs and GDP growth.

The above charts show the real reason for the shift: the Fed is in a box of its own making and it has no freaking idea how to get out of the box.

Mike "Mish" Shedlock

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John Ransom - Earnings Dominate...and That's Good Regardless of Market Direction
Posted: 1/13/2014 8:30:00 PM EST

Welcome to John Ransom’s Stocks in the News where the headlines meet the trendlines:

Stock number one: lululemon athletica inc

Lululemon shares dogged downward by another warning- Yahoo Finance

Lululemon (LULU) getting bootstomped this morning after the company guided estimates lower for the fourth quarter. It’s hard to call the news a shock given the recent trends in the business except for the fact that it blamed the miss on traffic and sales in January. How one of the slowest months of the year could be so bad as to justify a warning less than two weeks into the new year is a mystery.

Symbol: LULU

Dividend: 1.50%

Forward PE: 22; Trailing PE 27;

PEG: 1.66

Estimate Trend: Down

Ransom Note Trendline: Sell Lululemon

LULU Chart

LULU data by YCharts

Stock number two: Ericsson

Peace initiative launched in Mexico with Forest Whitaker, Ericsson, UNESCO, - Thompson-Reuters

Blah, blah, blah, UN, blah, blah, blah, peace…..

Symbol: ERIC

Dividend: 2.5

Forward PE: 14 Trailing PE: NA

PEG: .77

Estimate Trend: Flat

Ransom Note Trendline: Hold Ericsson

ERIC Chart

ERIC data by YCharts

Stock number three: The Wendy's Company

Why Wendy's (WEN) Is Up Today —The

Wendy's Co.(WEN_) was rising 7.6% to $9.09 Monday morning after the fast-food chain offered investors its 2014 earnings forecast that beat analysts' expectations. The Dublin, Ohio-based company projected full-year adjusted earnings of 34 to 36 cents per share, well above the average analyst projection of 29 cents per share. Wendy's also announced that it expects company-owned same-restaurant sales to increase by 2.5% to 3.5% for the full year.

Symbol: WEN

Dividend: 2.4

Forward PE: 31; Trailing PE: 95


Estimate Trend: UP

Ransom Note Trendline: Avoid Wendy’s

WEN Chart

WEN data by YCharts

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