Stocks in the News: Facebook Pops, 21st Century Fox

Posted: Aug 06, 2013 12:01 AM

Stock number one is: 

Facebook Inc., (SYMBOL: FB) and the headline says:  Facebook Closes Above $38 IPO Price Amid Mobile Ad Gains --  Bloomberg

Facebook shares surpassed their 2012 IPO price of $38 per share on Friday, reaching higher again today.  The social network icon surprised investors in late July when reporting a rapid and successful transition from desktop to mobile advertising.  Earnings projections for the year have increased dramatically in recent weeks.  Wall Street now expects earnings to grow 31 – 34% per year over the next three years.

The share price is up 36% since we told investors to buy Facebook on May 2, and it’s up 14% since we reiterated the buy recommendation on July 25.  The stock could easily rise significantly from here, based on irrational exuberance, but shareholders should use stop-loss orders in preparation for eventual price volatility.

Our Ransom Note trendline says:  HOLD FACEBOOK.

FB Chart

FB data by YCharts

Stock number two is: 

News Corp., (SYMBOL: NWSA) and the headline says: Two Asset Plays In The Newspaper Industry – Seeking Alpha

We urged Ransom Notes listeners to buy News Corp. shares repeatedly this year, in anticipation of the late June separation of 21st Century Fox and News Corp.  The stocks have been trading separately for five weeks now, and investors have made 27% profit since our first recommendation in February.

News Corp. shares now represent media interests, including news, sports, digital real estate services, book publishing and pay TV.  Earnings are projected to be flat to slightly-down over the next two years.

The stock price broke out of a trading range on August 1.  Shareholders should keep News Corp. shares for addition price appreciation, and await the announcement of the first dividend.

Our Ransom Note trendline says..... HOLD NEWS CORP.

NWSA Chart

NWSA data by YCharts

Stock number three is:

21st Century Fox Inc., (SYMBOL:  FOXA) and the headline says: Wall Street expects a profit of $0.35 per share for Twenty-First Century Fox Inc's fourth quarter – Reuters

News Corp. shareholders also received shares in 21st Century Fox in late June.  The Fox shares represent film, cable, broadcast t.v., pay t.v. and satellite assets.  Fox is the distributor of the new hit movie “The Wolverine”.

The company will report fourth quarter results tomorrow after the market closes.  Earnings are projected to grow 14 and 24% in the years 2014 and ‘15.  The PE is 23.

Fox shares broke out of a trading range on Friday and are reaching new highs again.  Growth stock investors should jump in now.

Our Ransom Note trendline says....  BUY 21ST CENTURY FOX.

FOXA Chart

FOXA data by YCharts

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.