Stocks in the News

Posted: Jul 26, 2013 12:01 AM

Stock number one is: 

PulteGroup Inc., (SYMBOL: PHM) and the headline says:

PulteGroup homesales revenue rises 19%, orders down 12% – Reuters

"Homebuilder PulteGroup, Inc. reported second quarter earnings below expectations, with a series of one-time charges.  New home orders came in weaker than expected, as Pulte is focusing on price over sales."

The company had strong increases in revenues, selling prices, gross margins, and backlog; and lowered its debt ratio to 26%.  Pulte also announced a five-cent quarterly dividend, and authorized the repurchase of another $250 million of shares.

The stock’s been trading between $18 and $24 all year, then fell below $17 today.  Nevertheless, we believe the share price will rebound shortly.

Our Ransom Note trendline says:  HOLD PULTEGROUP. 

Stock number two is: 

Facebook, Inc., (SYMBOL: FB) and the headline says:

In Your Face! Facebook Delivers Upside in Second Quarter – Citi Research

Global social network icon Facebook, Inc. reported second quarter ad revenue up 61% year-over-year, surprising Wall Street with its rapid transition from desktop to mobile advertising.  The company reported earnings of 13 cents per share, vs. an 8 cent loss last year.

Earnings are projected to rise 8% this year, then 37% next year.  The PE is 59.

The Facebook IPO was priced at $38 last year: shares promptly fell to the low $20’s.  We told Ransom Notes listeners to buy Facebook shares in May. The stock price is up 15% since then.  Watch for price resistance at $38.

Our Ransom Note trendline says..... ACCUMULATE FACEBOOK.

Stock number three is:

Boston Scientific Corp., (SYMBOL: BSX) and the headline says:

Boston Scientific 2nd-quarter profit beats, shares rise – Reuters

Mecial device-maker Boston Scientific beat Wall Street's growth estimates on second quarter revenues, earnings and gross margins, with broad-based strength across product lines.  The company also announced FDA clearance of its new Rhythmia Mapping System, which is expected to become the new gold standard for mapping and navigation in the diagnosis and treatment of abnormal heartbeats.

After many years of net losses, the company is on track to consistently report annual growing profits.

The stock price is rebounding from a long-term slump.  There’s some price resistance around $11.  Aggressive growth investors should jump in on a bounce below $10.

Our Ransom Note trendline says....  BUY BOSTON SCIENTIFIC.