Stocks in the News

Posted: Jul 25, 2013 12:01 AM

A real quick moment of bragging: All three of these stocks were recommended by Stocks in the News, and their performance is right in line with our previous comments.

Now since we have patted ourselves on the back. . . Here they are:

Stock number one is: 

Apple Inc., (SYMBOL: AAPL) and the headline says:

iPhone Impresses but Questions Persist – Citi Research

Apple Inc. reported a surprising third quarter surge in iPhone sales, but earnings were still down 20% year-over-year on flat total revenues.  iPad, iPod, and Mac sales were down for the 12-month period, and gross margins continued a steady decline.

Full year profits are expected to fall about 11% this year, then rise 10% in 2014.

On July 2, we called Apple a trading buy under $420.  The stock is up 6% since then.  Traders should jump out at resistance at $460.

Our Ransom Note trendline says:  STAY ON THE SIDELINES.

Stock number two is: 

Delta Air Lines Inc., (SYMBOL: DAL) and the headline says:

Delta Posts Second Quarter Profit on Lower Fuel Spending – NBC News

After cautioning investors in early July that the weak yen was affecting revenues, Delta Air Lines reported a great second quarter, with net profit up 44% year-over-year, handily beating the consensus estimate.  The company is focusing on debt reduction, and return of capital via increased dividends and a $500 million share repurchase program.

Earnings are projected to grow 42% in 2013.  The PE is 8.

Delta’s stock price is up 52% since we told Ransom Notes listeners to buy at $14 earlier this year.  The stock broke past long-term resistance in early March, then broke out of another trading range last week.

Our Ransom Note trendline says..... BUY DELTA AIR LINES.

Stock number three is:

Ford Motor Co., (SYMBOL:  F) and the headline says:

Ford Raises Profit Forecast After Exceeding Estimates -- Bloomberg

Ford trounced Wall Street today with second quarter earnings of 45 cents per share, vs. the expected 37 cents, and now expects full-year earnings to exceed last year’s numbers.  Deliveries of the Focus are surging in China, losses are being cut in Europe, and the Fusion is gaining popularity in the U.S.

Earnings are expected to grow 17 and 23 percent in 2014 & ’15.  The PE is 12.2, and the dividend yield is 2.29%.

Ford shares are up 30% since we urged Ransom Notes listeners to buy in May, and will meet medium-term resistance at $19.

Our Ransom Note trendline says....  HOLD FORD MOTOR COMPANY.