Welcome to John Ransom’s Stocks in the News where the headlines meet the trendlines.
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Stock number one: Ebay
EBay will spin off PayPal, giving in to Carl Icahn-- LA Times
Online marketplace EBay Inc. is bowing to investor pressure by spinning off its payment business PayPal into a separate publicly-traded company by 2015.
Wall Street cheered the news Tuesday and pushed up shares of EBay by 6.8% to $56.24 in morning trading.
The move is a sharp reversal for the San Jose company, which had spent months fighting activist shareholder Carl Icahn, who had argued both businesses would benefit from a split.
Symbol: EBAY
Trailing PE: NA; Forward PE: 17
PEG: 1.41
Dividend: NA
Estimate Trend: Down
Ransom Note Trendline: Hold Ebay
Stock number two: Teekay Corporation
Why Deutsche Bank Upgraded Teekay --Barron's
Shares of Teekay (TK) have surged more than 15% this morning after the shipping company announced a new dividend policy after yesterday’s close. Deutsche Bank’s Amit Mehrotra think the news is good enough to be worthy of an upgrade for Teekay.
Symbol: TK
Trailing PE: NA; Forward PE: 38
PEG: 2.21
Dividend: 4.00% +/-
Estimate Trend: Up
Ransom Note Trendline: Buy Teekay
Stock number three: Apple
Apple’s IPhone Pay System Casts Shadow on PayPal Spinoff --Bloomberg
Apple Pay and some of the other services stand out against PayPal for a key reason. Right out of the gate, Apple Pay is ready for consumers to make transactions with their mobile devices at different merchants. That mobile-ready aspect is an area where PayPal, which has roots as a facilitator of payments through websites, hasn't been as dominant. EBay has made acquisitions to help speed the transition, including paying $800 million for mobile-payments startup Braintree last year.
Symbol: AAPL
Trailing PE: 16; Forward PE: 14
PEG: 1.30
Dividend: 2.00
Estimate Trend: Up
Ransom Note Trendline: Buy Apple