Welcome to John Ransom’s Stocks in the News where the headlines meet the trendlines.
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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
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