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Stocks in the News: AAPL, F, FDX

The opinions expressed by columnists are their own and do not necessarily represent the views of

Welcome to John Ransom’s Stocks in the News where the headline meets the trendline:

                  Stock Number One is:

Name:  Apple Inc. (AAPL) --

and the headline says: 

Apple Seen Raising Dividend More Than 50% to $16 Billion  (Bloomberg)

Wall Street analysts are expecting Apple Inc. to raise its quarterly dividend to about $4.14, or a yield of 3.75%.  This increase would easily be funded out of cash flow.

The stock price has been hemorrhaging since it became clear that earnings growth has ground to a halt.  Earnings per share are projected to increase less than one percent this year.

The share price tumbled from a high of $705 to the current range of $420-$450, and has not yet formed a base.

Our Ransom Note trendline says:  AVOID APPLE.

AAPL Chart

AAPL data by YCharts

 * * * * * * 

                  Stock Number Two is:

Name:  Ford Motor Company (F) --

and the headline says: 

Ford’s CEO Mulally Gets Pay Slashed (Wall Street Cheat Sheet)

“Ford Motor Company fell short in three crucial areas last year: market share, cash flow, and profit.”  As a result, CEO Alan Mulally has received a pay cut of 29%, to a cash & stock combo of $21 million.

Earnings per share fell in 2012, and are expected to be flat in 2013, due to economic woes in Europe, a glut on the car market in South America, and margin pressures in China.

Our Ransom Note trendline says: AVOID FORD MOTOR COMPANY.

F Chart

F data by YCharts

* * * * * * 

         Stock Number Three is:

Name:  FedEx Corporation (FDX) -- $108.12, down 95 cents today.

and the headline says: 

FedEx to Report Third Quarter Earnings This Week

As FedEx finishes up a lackluster 2013 in May, with an expected earnings per share decrease of 4%, it’s time for investors to look ahead to 2014.

Wall Street expects FedEx to increase earnings per share 24% and 19% in 2014 and ’15.  That gives the stock a forward PE of 13.8.  The PE on FedEx has ranged from 9 to 34 over the last decade.

The share price is on an immediate uptrend as it continues to recover from the 2008 Financial Meltdown.  There’s some price resistance at $120.

Our Ransom Note trendline says:  BUY FEDEX.

FDX Chart

FDX data by YCharts

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