Welcome to John Ransom's Stocks In The News, where the headline meets the trendline.
Stocks in the News is produced by Ransom Notes Radio and Goodfellow, LLC. Crista Huff manages Goodfellow LLC, a website that recommends outperforming stocks using fundamental and technical analysis.
Stock number one is:
Hewlett-Packard Company, (SYMBOL: HPQ) and the headline says:
PC Shipments Suffer as Tablets Continue to Gain Market Share (Citi Research)
Shipments of personal computers are down a surprising 14% year-over-year in first quarter ’13, much worse than market estimates of -7.7%. All major geographies and computer companies participated in the decline. Hewlett-Packard saw shipments fall 23%, and will likely lose its dominant position in the PC market to aggressive competitor Lenovo.
Citi Research adds, “HP also continues to lose business services market share.”
On March 21, we said, “Sell Hewlett-Packard.” Earnings per share are still expected to fall about 13% this year, and Wall Street will likely revise that number downward. The stock price hit a ten-year low in December. Despite a recent dead-cat bounce in the stock price,
Our Ransom Note trendline says: SELL HEWLETT-PACKARD.
Stock number two is:
Microsoft Corp., (SYMBOL: MSFT) and the headline says:
Microsoft Windows 8 Caught in PC Sales Slump (Citi Research)