Stocks in the News

Posted: Aug 03, 2013 12:00 AM
Stocks in the News

Stock number one is: 

Google Inc., (SYMBOL:  GOOG) and the headline says: Google’s Motorola Unveils Moto X Phone to Revive Business -- Bloomberg

Google’s wholly-owned Motorola Mobility unit is rolling out its new flagship Moto X smartphone this summer, with prices starting at $199, in direct competition to the iPhone and Galaxy S.  The new phone will be made in America, and features competitive improvements in design, camera, battery life and usability.

Google’s earnings are projected to grow 9, 18, and 18 percent over the next three years.  The PE is 20.8.

We began recommending Google shares on April 19.  The stock is up 17% so far, and still on an uptrend, currently trading between $880 and $928.  Investors may have one more opportunity to buy below $900 before the stock starts reaching new highs again.

Our Ransom Note trendline says:  BUY GOOGLE.

GOOG Chart

GOOG data by YCharts

Stock number two is: 

Chevron Corp., (SYMBOL: CVX) and the headline says: Chevron Posts Big Earnings Miss – Zacks

Chevron Corp. missed analysts’ second quarter estimates today, with earnings down 25% year-over-year, and revenues down 8%.  Earnings were harmed by lower crude prices and soft downstream margins.

Earnings projections are flat, totaling one percent growth through fiscal 2015.  The PE is 10, and the dividend yield is 3.24%.

The stock is on a distinct uptrend, with an attractive chart, but there is no underlying reason to own Chevron shares.  On April 1, we advised current shareholders “to hold the stock during the upswing in price, using stop loss orders to protect profits,” then consider moving on to a stock with earnings growth.  Our opinion remains the same.

Our Ransom Note trendline says..... HOLD CHEVRON.

CVX Chart

CVX data by YCharts

Stock number three is:

Procter & Gamble Co., (SYMBOL:  PG) and the headline says: Year of Transition Ends on a High Note – Citi Research

Consumer products company Procter & Gamble reported fourth quarter earnings and organic sales growth above consensus, but margins were disappointing.  The company is guiding 2014 earnings growth estimates higher, in the 5-7% range including foreign exchange impact, as cost-cutting efforts are taking effect.  Citi Research says, “P&G is in the middle of a truly massive productivity spurt,” as returning CEO A.G. Lafley steers Procter & Gamble into the future.

We told listeners three times since April that the stock was in a trading range, and to stay on the sidelines.  The chart has now turned decidedly bullish, and the stock appears ready to break past resistance at $82 and make another run-up.  Fundamentals are not compelling, but with a 3% dividend and a bullish chart, P&G could appeal to growth & income investors and momentum investors.

Our Ransom Note trendline says....  BUY PROCTER & GAMBLE.

PG Chart

PG data by YCharts