John Ransom - Mmmmmmm, Coke
Posted: 8/15/2014 2:00:00 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: Monster Beverage Corporation

Monster Beverage shares soar 30% after Coke deal announced—The LA Times:

Shares of energy drink maker Monster Beverage Corp. got a jolt after Coca-Cola Co. agreed to take a minority stake in the Corona company.

Monster shares soared $21.66, or 30.23%, to $93.31 Friday morning, a day after the deal was announced after the close of trading. The companies said Coca-Cola will take a 16.7% stake in Monster, as part of a $2.15-billion all-cash deal.

Symbol: MNST

Trailing PE: 43; Forward PE: 31

PEG: 1.79

Dividend: NA

Estimate Trend: Up

Ransom Note Trendline: Buy on a Pullback Under $85

Stock number two: James Hardie Industries plc

James Hardie Q1 profit slides 80 pct, warns of slower US recovery --Reuters

James Hardie Industries PLC , the world's biggest fiber cement products maker, on Friday posted an 80 percent fall in fiscal first quarter net profit and revised down its full-year earnings due to an uncertain U.S. economic recovery.

Symbol: AIRM

Trailing PE: 274; Forward PE: 97

PEG: NA

Dividend: 4.90%

Estimate Trend: NA

Ransom Note Trendline: Avoid James Hardie

Stock number three: The Coca-Cola Company

Can Coca-Cola Keep the Momentum Going in the Second Half?--Zack's

Coca-Cola posted mixed results for the second quarter of 2014, beating the Zacks Consensus Estimate for earnings but slightly missing the same for revenues. Earnings of 64 cents per share increased 1% year over year driven by improved sparkling beverage volumes, price/mix gains, strong international volumes and better gross margins which made up for higher commodity and marketing costs. Organic revenues grew 3% driven by better volumes.

However, what caught investors’ attention was an improvement in the volumes of Coca-Cola’s sparkling beverages, especially its namesake brand.

Symbol: KO

Trailing PE: 22; Forward PE: 19

PEG: 3.17

Dividend: 2.90%

Estimate Trend: Up

Ransom Note Trendline: Avoid Coca Cola

Michael Schaus - In Other News: Criminal Strangely Ignores No-Gun Sign in Lobby of FBI Building
Posted: 8/15/2014 12:18:00 PM EST

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

Remember the Feminist Studies teacher that attacked a pro-life student? Well, the prof’s defenders are saying that the “cultural legacy of slavery” is responsible for her actions because she’s black… So, I guess if I ever smack a Brit it’s OK because I’m part Irish, right?

(Fox News)

Hey, Mike Bloomberg, listen up: Some guy got a loaded handgun into a “secure” government building. The guy is most likely going to face some charges for carrying a gun in a “gun free zone”. Investigators are also trying to determine if any action can be taken against the signs for allowing an armed individual into the building.

(ABC News)

Okay… First we were told Lois Lerner’s hard drive was damaged beyond repair. Then we learned that it was only scratched. And now we learn that it may not have been damaged in any way. If I could just get the IRS to backtrack like this on my tax bill, I wouldn’t hate the month of April quite so much.

(Daily Caller)

It’s culturally insensitive to make a video game where you kill some Muslim extremists… So, this group decided to make a game where you kill a bunch of racist tea partiers instead. (The irony of mocking anti-government protestors by making a game where government forces hunt down a bunch of anti-government protestors is probably lost on the creators.)

(Breitbart)

This intellectually deficient “philosopher” has decided that government should license parenthood… Yep. You can only have kids if a bunch of bureaucrats decide you’re worthy. Oh, and it gets better: He wants the UN to be in charge of your family planning. (Because, ya know, they do so well with things like the “Oil for Food” program.)

(Life Site News)

John Ransom - JC Penney Defies Odds
Posted: 8/14/2014 2:48:00 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: Red Robin

Red Robin plunges to 52-week low after awful quarter—Yahoo Finance:

Red Robin Gourmet Burgers (RRGB) was having one of the worst trading days in the stock's history Thursday, slumping to a 52-week low after a terrible quarterly report and further putting its five-year market winning streak in doubt.

The Greenwood Village, Colo., burger chain recently was down $13.63 at $50.92. On a percentage basis, the 21.1% drop would be its fourth-largest in a session going back to 2002. Earlier in the day, it was at $50.50. Meanwhile, two hours into trading, volume was 15 times higher than average.

Symbol: RRGB

Trailing PE: 22; Forward PE: 15

PEG: 1.73

Dividend: NA

Estimate Trend: NA

Ransom Note Trendline: Avoid Red Robin

Stock number two: Air Methods Corp.

Why You Shouldn't Bet Against Air Methods (AIRM) Stock--Zack's

One stock that might be an intriguing choice for investors right now is Air Methods Corp. (AIRM). This is because this security in the Medical Services space is seeing solid earnings estimate revision activity, and is a great company from a Zacks Industry Rank perspective.

Symbol: AIRM

Trailing PE: 30; Forward PE: 18

PEG: 1.18

Dividend: NA

Estimate Trend: Up

Ransom Note Trendline: Buy Air Methods

Stock number three: J. C. Penney Company, Inc.

What to Expect When J.C. Penney (JCP) Reports Second-Quarter Earnings After The Bell Today--Barron's

J.C. Penney(JCP_) reports second-quarter earnings after the closing bell Thursday, and here's what analysts are expecting from the department store chain.

The consensus estimate calls for J.C. Penney to report a loss of 93 cents a share on revenue of $2.79 billion. The company reported a loss of $1.16 a share in the first quarter, narrower than the Thomson Reuters consensus estimate of a loss of $1.25 a share. Revenue totaled $2.8 billion, which beat the consensus estimate of $2.71 billion.

Symbol: JCP

Trailing PE: NA; Forward PE: NA

PEG: 0.12

Dividend: NA

Estimate Trend: Up

Ransom Note Trendline: Avoid JC Penney

Michael Schaus - In Other News: Press "2" to Read This Headline in Spanish
Posted: 8/14/2014 1:35:00 PM EST

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

A new telephone survey shows that roughly 83 percent of Americans would like English to be the official language of the United States. Another 7 percent responded “no understand”; and another ten percent kept hitting “2” to hear the question in Spanish.

(Rasmussen)

John Kerry says that climate change is the biggest threat we currently face… I mean, a bunch of terrorists instigating a genocidal slaughter in the Middle East probably runs a distant second. (The threat of the Lorax going extinct probably runs a tight third.)

(CNS News)

Here’s the headline: U.S. declares Yazidi intervention a success, says rescue mission unneeded. And, if the US government says it was a “success”, then clearly we can throw up that “mission accomplished” banner we have left over from Obama’s troop withdrawal.

(McClatchy DC)

Seriously? Barack Obama – the guy who is busy golfing, swimming, and dancing through world-wide unrest – called Israel’s Prime Minister “reckless”; and refused to ship American missiles to the Israelis. The chutzpa!

(Y Net News)

While everything else is going on in the world (including race riots in Ferguson, MO) the Obamas spent the night dancing away with some Hollywood big shots… Because 17 room vacation homes in Martha’s Vineyard, daily golf games, and getting down with the rich and famous is really what the Presidency is all about.

(Weasel Zippers)

John Ransom - Stocks in the News: Annoy a Liberal with SeaWorld
Posted: 8/13/2014 1:47:00 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: SeaWorld Entertainment, Inc.

SeaWorld Shares Tank After Animal Rights Protests Hurt Results—Wall Street Journal:

SeaWorld Entertainment Inc.SEAS -34.74%, which made a splashy debut on the public markets last year, tanked Wednesday as animal rights protests and negative publicity took a significant toll on the company’s second-quarter results.

Shares fell 30% Wednesday and recently traded below $20, an all-time low.

Symbol: SEA

Trailing PE: 40; Forward PE: 11

PEG: 0.94

Dividend: 2.80

Estimate Trend: NA

Ransom Note Trendline: Buy SeaWorld Entertainment

Stock number two: Groupon, Inc.

Groupon, Zynga investors are losing money and patience--MarketWatch

They were among the fastest-growing tech startups in the early days of the social media craze. But that was then.

Zynga Inc. and Groupon Inc. were both media darlings, touted for their fast-growing businesses and hefty revenue generation. Investors had reason to hope that this second generation of Internet companies would indeed be different from the dot-com bubble of 2000.

Symbol: GRPN

Trailing PE: NA; Forward PE: 29

PEG: 2.68

Dividend: NA

Estimate Trend: Flattish

Ransom Note Trendline: Avoid Groupon

Stock number three: Kate Spade & Company

Kate Spade: Big Drop Makes for a Compelling Entry Point--Barron's

Shares of Kate Spade (KATE) lost a quarter of their value yesterday after the luxury handbag maker said its profit margins had dropped. Barclays’ Joan Payson and team, however, think margin concerns are “overblown.”

Note: Payson says “The core business lost (80) bps, which in this promotional environment we do not view as particularly worrying.”

Symbol: KATE

Trailing PE: 23; Forward PE: 46

PEG: 12.08

Dividend: NA

Estimate Trend: Flat

Ransom Note Trendline: Avoid Kate Spade

Michael Schaus - In Other News: 130 More Boots on the Ground for "No-Boots-on-the-Ground" Operation in Iraq
Posted: 8/13/2014 1:35:00 PM EST

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

“This is not a combat, boots-on-the-ground, operation in Iraq” said Defense Secretary, Chuck Hagel, while he ordered 130 more boots on the ground.

(CNS News)

ISIL posted a picture of a young kid holding up a severed head. John Kerry’s reaction was to express outrage that the child Jihadist wasn’t in school… Things got really bad when Michelle learned that ISIL doesn’t adhere to her healthy-lunch mandates.

(Breitbart)

California’s Catholic universities might soon be forced to pay for employee abortions. (And, no, that doesn’t mean employees are being aborted.) It almost seems like the Bill of Rights is incompatible with progressivism…

(SF Gate)

'I Don't Know These Groups!' An Imam on Fox News claimed to be unaware of ISIL and Al Qaeda… Oh, and according to suspected members of La Cosa Nostra, there’s no such thing as the mafia. (Wink, wink; nudge, nudge.)

(Fox News)

Democrats in Montana have a far out idea… They’re trying to draft “the dude” (Jeff Bridges) to run for the US Senate. We’ll see whether or not the dude abides.

(Daily Caller)

Kim Kardashian is releasing a hardcover book of “selfies”. Wha… I don’t even… why would… how is this… Ugh. I don’t want to live on this planet anymore.

(Breitbart)

John Ransom - Ransom's Buys Right Now
Posted: 8/12/2014 2:41:00 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: Ford Motor Co

Ford China Sales Rise 25% in July, Up 33% Year to Date—Ford Motor Corp

Ford Motor Co. (F) sold 90,775 vehicles in China in Jul 2014, which reflects a 25% year-over-year increase over 72,834 units sold in Jul 2013. Year-to-date sales of Ford in the world’s largest automobile market amounted to 640,031 units, up 33% from 480,555 vehicles sold in the first 7 months of 2013.

Symbol: F

Trailing PE: 11; Forward PE: 9

PEG: 1.06

Dividend: 3.00

Estimate Trend: Up

Ransom Note Trendline: Buy Ford Motor

Stock number two: The Home Depot, Inc.

Why the Gallup spending measure increased in July--Market Realist

The July reading suggests a mixed bag for the economy. While it represents a much higher level of consumer spending than the $60–$70 averages found for much of 2009–2012, it’s still below the $100 averages seen several times in 2008 before the financial crisis. Spending had come close to this level in May of this year at $98—a monthly figure not seen since September, 2008.

Symbol: HD

Trailing PE: 21; Forward PE: 16

PEG: 1.16

Dividend: 2.30%

Estimate Trend: Up

Ransom Note Trendline: Buy Home Depot

Stock number three: Amazon

Amazon (AMZN) Debuts Five TV Series for Third Pilot Season--Amazon

Amazon.com Inc. (AMZN) announced its decision to debut five original TV series for the third pilot season on Aug 28 in the U.S. and U.K.

These include three comedies — The Cosmopolitans by Whit Stillman; Really written and directed by Jay Chandrasekhar and Red Oaks written by Gregory Jacobs and Joe Gangemi — and two dramatic thrillers — Hysteria written by Shaun Cassidy and Hand of God starring Ron Perlman.

Symbol: AMZN

Trailing PE: 495; Forward PE: 163

PEG: 60

Dividend: NA

Estimate Trend: Up

Ransom Note Trendline: Buy Amazon

Michael Schaus - In Other News: Good Guys with Guns Stop Bad Guys with Bricks
Posted: 8/12/2014 2:03:00 PM EST

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

Obama was apparently for our troop withdrawal from Iraq, before he was against it. It’s nice to see that John Kerry has influence in the Administration:

(breitbart.com)

A news crew was reporting on a new app that alerts users to “sketchy” neighborhoods, when their news van was burgled while sitting in the so-called “sketchy” neighborhood… In other words: The app works.

(youtube.com)

Deciding that the legacy of JFK was not necessarily adequate to convey the glory of Willingboro, New Jersey, the town renamed their “Kennedy Center” to “Obama Center”. And, by the way, there is nothing wrong with idolizing sitting presidents by naming monuments and buildings after them. Plenty of fine third world dictators have proven that to us.

(my9nj.com)

Look at that: Good guys with guns, stopping bad guys with bricks… Amid all the riots in Ferguson and St. Louis, some local shop owners decided to protect their stores by arming themselves with AR-15s. It worked. But, yeah, there’s totally no reason to ever own an “assault” weapon. According to Joe Biden, they should have just indiscriminately shot a double barrel gun into the air. (Because that would totally defuse a chaotic and violent situation, right?)

(riverfronttimes.com)

Obama has lifted the ban on allowing Libyans to attend US flight schools and training in nuclear science. According to the DHS this ban can be lifted now, because we have been working on “normalizing” our relationship with Libya… And I’m sure that dead ambassador incident – a couple years back – was just a fluke.

(freebeacon.com)

Also: I now have a new life goal...

Michael Schaus - In Other News: Suicide Bombing Instructor's Last Words: "I'm Only Going to Show You this Once"
Posted: 8/11/2014 2:36:00 PM EST

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

ISIL is coming up with creative ways of encouraging young Muslims to join the fun, hip, exciting party known as “Jihad”. (BYOE: Bring Your Own Explosives.)

(dailymail.co.uk)

The Obama administration is blaming “bad intelligence” for their underestimation of ISIL… In all fairness, I think “bad intelligence” is a pretty accurate way to describe the brain-power behind White House policy.

(breitbart.com)

A Jihadist instructor accidently blew himself (and his class) up when he was demonstrating a suicide bomb. His reported last words where, “I’m only going to show this to you once.”

(belfasttelegraph.co.uk)

Forget the DB5, James Bond might have to start driving a Prius. London is getting ready to implement a ban on cars that don’t adhere to zero-emission requirements. Maybe Bond can start tearing around town on a nice 10-speed Shwimm.

(foxnews.com)

German environmentalists want the military to scrap a new top-of-the-line fighter jet because it emits too much carbon. Apparently, there is no room for heavy artillery in the war on global warming.

(notrickszone.com)

John Ransom - Post Falls 10 Percent
Posted: 8/8/2014 2:58:00 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: Post Holdings, Inc.

Cereal maker Post tumbles 10% after hours—USAToday

Shares in Post Holdings tumbled 10% after hours Thursday after the breakfast cereal maker cut its outlook for underlying earnings.

The St. Louis, Mo.-based food company reported sales of $633 million for the June quarter, more than double the year-ago period thanks to revenue from acquisitions. It reported a loss of $39.3 million, or 92 cents a share. Adjusted, the loss would have been 30 cents. Analysts were expecting adjusted profit of 27 cents on sales of $628 million.

Symbol: POST

Trailing PE: NA; Forward PE: 21

PEG: 2.51

Dividend: NA

Estimate Trend: NA

Ransom Note Trendline: Avoid Post Holdings

Stock number two: Volcano Corporation

Volcano (VOLC) Posts Strong Q2 Earnings, Guides Low for 2014--Zacks

California-based medical instruments manufacturer Volcano Corporation (VOLC) reported second-quarter 2014 adjusted earnings of a penny per share, substantially ahead of the Zacks Consensus Estimate of loss of 4 cents. However, adjusted earnings experienced a significant year-over-year decline of 66.7% from the prior-year quarter's adjusted tally of 3 cents per share.

However, without these adjustments, the company reported net income $0.3 million or a penny per share, reasonably better than the year-ago net loss of $2. 4 million or loss of 4 cents per share.

Symbol: VOLC

Trailing PE: NA; Forward PE: 246

PEG: -6.23

Dividend: NA

Estimate Trend: NA

Ransom Note Trendline: Avoid Volcano

Stock number three: HMS Holdings Corp.

Watch Out: Barbarians At The Gate For HMS Holdings (HMSY).--The Street.com

Trade-Ideas LLC identified HMS Holdings ( HMSY) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified HMS Holdings as such a stock due to the following factors:

  • HMSY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.1 million.
  • HMSY has traded 337,734 shares today.
  • HMSY traded in a range 231.5% of the normal price range with a price range of $1.17.
  • HMSY traded above its daily resistance level (quality: 35 days, meaning that the stock is crossing a resistance level set by the last 35 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Symbol: HMSY

Trailing PE: 51; Forward PE: 25

PEG: 1.68

Dividend: NA

Estimate Trend: Flat

Ransom Note Trendline: Avoid HMS Holdings