Welcome to John Ransom's Stocks In The News, where the headline meets the trendline.
Stock number one is:
Pitney Bowes Inc., (SYMBOL PBI) and the headline says:
Pitney Bowes Cuts Dividend (Dow Jones Newswire)
Pitney Bowes, global provider of software and hardware products & services, announced disappointing first quarter earnings today. Declining mail use in America is harming the bottom line, and forcing the company to shift to lower-margin products and services.
The company slashed its dividend in half today, and guided full-year earnings estimates down as much as 20% year-over-year.
While Pitney Bowes remains a solidly profitable company with a good dividend and a low PE, the problem is that there is no proven growth plan in place. The stock reached ten-year lows in January, and is currently trading between $13 and $15.50. Investors should focus on companies with strong projected earnings growth.
Our Ransom Note trendline says: SELL PITNEY BOWES.
Stock number two is:
MeadWestvaco Corp., (SYMBOL: MWV) and the headline says:
MeadWestvaco profit falls 78% on higher costs (MarketWatch)
Global packaging company MeadWestvaco Corp. disappointed Wall Street with a big first quarter earnings miss due to higher costs. Additonally the company is lowering earnings guidance for the second quarter. Earnings came in at 16 cents per share vs. the expected 24 cents; however, revenues were strong.
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