Stocks in the News: Priceline, Wow!

Crista Huff
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Posted: Aug 10, 2013 12:01 AM

Stock number one is: 

Priceline.com, (SYMBOL: PCLN) and the headline says: Priceline Reports 24% Earnings Gain – Fox Business

Priceline.com reported 44% international bookings growth in the second quarter and total revenues up 27%, with earnings per share coming in slightly above consensus estimates.  Morgan Stanley said, “We are impressed by Priceline’s ability to outperform amidst tempered European macro conditions,and have higher conviction in its competitive positioning.”

Earnings growth projections have increased to 25, 21, and 20 percent over the next three years.  The PE is 25.  Wall Street is raising estimates again today.

Priceline shares are up 41% since we began recommending them in February.  The stock broke out of another trading range on Monday and rose rapidly.  We would wait for a price pullback before accumulating more shares.

Our Ransom Note trendline says:  HOLD PRICELINE.COM.

PCLN Chart

PCLN data by YCharts

Stock number two is: 

BlackBerry Ltd., (SYMBOL: BBRY) and the headline says: BlackBerry open to going private, sources say -- Yahoo

The stock of smartphone maker BlackBerry Ltd. is up today on rumors that the company is considering going private.  There are no buyers in sight as of yet, but with large annual net losses inevitable in the foreseeable future, the company is contemplating financial strategies which they were formerly unwilling to consider.

We told investors to sell BlackBerry stock, formerly called Research in Motion, three times this year through late June, at which time the price plummeted again.  There is no fundamental reason to buy shares in a company that’s consistently losing money.

Our Ransom Note trendline says..... SELL BLACKBERRY.

BBRY Chart

BBRY data by YCharts

Stock number three is:

Biogen Idec Inc., (SYMBOL: BIIB ) and the headline says: Tecfidera's Launch Tracking Above 2013 Estimates – Citi Research

Biogen Idec’s new multiple sclerosis drug, Tecfidera, continues to experience robust sales above Street estimates since receiving FDA approval in March.  Citi Research says, “The current level of new [prescription] starts is still very robust” and that Biogen has a “deep pipeline that could offer upside surprise.”

Earnings per share growth estimates have increased repeatedly this year, now at 31, 28, and 19 percent over the next three years.  The PE is 25.”

The stock rose $50 per share after we recommended it in March, at which point we said “hold” while it consolidated.  It’s time to buy Biogen again for immediate upside.  Expect it to trade between $213 and $235 in the short-term.

Our Ransom Note trendline says....  BUY BIOGEN IDEC.

BIIB Chart

BIIB data by YCharts

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.