Welcome to John Ransom’s Stocks in the News where the headlines meet the trendlines.
Click here to listen to Ransom Notes Radio live or for archives of previous shows.
Stock number one: InterDigital, Inc.
InterDigital's Shares Rally On Updated Guidance—Benzinga
In a press release issued Tuesday morning, InterDigital (NASDAQ: IDCC) announced updated guidance for the second quarter of fiscal 2014. The company now expects its total revenue to be in the range of $172 -$210 million, its recurring revenues to be between $72 and $80 million and past sales of $100 - $130 million. Shares of the company have rocketed up over 14 percent following the release.
Symbol: IDCC
Trailing PE: 38; Forward PE: 13
PEG: 4.29
Dividend: 1.10
Estimate Trend: Flat
Ransom Note Trendline: Buy IDCC
Stock number two: Trinity Industries Inc.
Trinity Industries: The Mobile Pipeline--Seeking Alpha
Trinity Industries is an excellent long term play on the booming production of U.S. Shale Oil. Trinity is poised for robust long term growth from the inevitable build out and modernization of the U.S. rail car fleet to meet the growth in shale oil production.TRN has shown it is committed to an "all of the above" approach to increasing shareholder value, from the substantive recent 33% dividend increase to the psychological 2:1 stock split.
Symbol: TRN
Trailing PE: 12; Forward PE: 12
PEG: 1.16
Dividend: 0.50%
Estimate Trend: Up
Ransom Note Trendline: Buy Trinity
Stock number three: Dollar General Corporation
Dollar General Backs Forecast, Expansion Despite Q1--Investors Business Daily
Dollar General (NYSE:DG) slightly missed first-quarter profit and sales forecasts, but the deep discounter rose in the stock market today as it reiterated full-year guidance and said its expansion plans are still on. Reporting before the open, Dollar General posted earnings of 72 cents a share for its fiscal first quarter, which ended in April. That was up from 71 cents the previous year but a penny below consensus views. The specialty discounter blamed severe winter weather and stiff competition.
Symbol: DG
Trailing PE: 18; Forward PE: 14
PEG: 1.09
Dividend: NA
Estimate Trend: Down
Ransom Note Trendline: Avoid Dollar General
