Crista Huff

Stock number one is: 

Facebook Inc., (SYMBOL: FB) and the headline says:  Facebook Closes Above $38 IPO Price Amid Mobile Ad Gains --  Bloomberg

Facebook shares surpassed their 2012 IPO price of $38 per share on Friday, reaching higher again today.  The social network icon surprised investors in late July when reporting a rapid and successful transition from desktop to mobile advertising.  Earnings projections for the year have increased dramatically in recent weeks.  Wall Street now expects earnings to grow 31 – 34% per year over the next three years.

The share price is up 36% since we told investors to buy Facebook on May 2, and it’s up 14% since we reiterated the buy recommendation on July 25.  The stock could easily rise significantly from here, based on irrational exuberance, but shareholders should use stop-loss orders in preparation for eventual price volatility.

Our Ransom Note trendline says:  HOLD FACEBOOK.

FB Chart

FB data by YCharts

Stock number two is: 

News Corp., (SYMBOL: NWSA) and the headline says: Two Asset Plays In The Newspaper Industry – Seeking Alpha

We urged Ransom Notes listeners to buy News Corp. shares repeatedly this year, in anticipation of the late June separation of 21st Century Fox and News Corp.  The stocks have been trading separately for five weeks now, and investors have made 27% profit since our first recommendation in February.

News Corp. shares now represent media interests, including news, sports, digital real estate services, book publishing and pay TV.  Earnings are projected to be flat to slightly-down over the next two years.

The stock price broke out of a trading range on August 1.  Shareholders should keep News Corp. shares for addition price appreciation, and await the announcement of the first dividend.

Our Ransom Note trendline says..... HOLD NEWS CORP.

NWSA Chart

NWSA data by YCharts

Crista Huff

Crista Huff is a retired stockbroker from a NYSE member investment firm. She writes about market-timing at Goodfellow LLC and is active politically.
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