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OPINION

Stocks in the News: Nike Running Well

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

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Stock number one is: 

Nike Inc., (SYMBOL: NKE) and the headline says:

Nike's Earnings Beat Estimate – Zacks

Nike Inc. reported fourth quarter sales, earnings, and global futures which beat Wall Street estimates.  Product innovation and sports events are driving top-line growth in most geographic regions.  Citi Research commented on high cash balances, saying “we think management could be ready to accelerate share repurchases and/or dividend increases.”

Earnings are expected to grow another 13-15% in each of the next two years.  The PE is 20.4 and the dividend is 1.4%.

We urged investors to buy NIKE twice in March.  The stock then rose 20%.  The new trading range is $59 to $66.

Our Ransom Note trendline says:  BUY NIKE BELOW $62.

Stock number two is: 

Research in Motion, (SYMBOL: BBRY) and the headline says:

BlackBerry Plunges After Smartphone Maker Reports Loss -- Bloomberg

Research in Motion, maker of BlackBerry smartphones, reported a first quarter loss on lower than expected unit shipments, service revenues, and gross margins.  The stock is down substantially today, after the Street expected a profitable quarter.

The new BlackBerry 10 sales are doing well, and the company may earn a small profit in fiscal 2014 after losing money in the first two quarters, but is expected to lose money again in 2015.

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On March 25 and June 18, we said SELL, due to projections of falling revenues and net losses.

Our Ransom Note trendline says: SELL RESEARCH IN MOTION.

Stock number three is:

Accenture PLC, (SYMBOL: ACN) and the headline says:

Accenture's Third Quarter Earnings Beat, Revenues Miss – Zacks

Accenture PLC, the world’s second-largest technology-consulting company, disappointed Wall Street with flat third quarter sales.  U.S. revenue growth was up 7%, but international was weak.  Earnings were a little higher than expected, driven by good  operating margins.

"Bulls can focus on strong increases in new contracts in the recent two quarters; and share buybacks of approximately $1.4 billion are seen in the recent and next quarters.  Annual earnings growth is being revised down to about 9% this year.

The stock lost all of this year’s gains today, and will likely find support in the low $70’s.  It’s too late for fair-weather investors to sell on today’s stock overreaction.

Our Ransom Note trendline says:  HOLD ACCENTURE


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