Stocks in the News: Feds Go After JP Morgan

Posted: Aug 15, 2013 12:01 AM
Stocks in the News: Feds Go After JP Morgan

Stock number one is: 

Macy's Inc., (SYMBOL: M) and the headline says: Macy’s Quarterly Profit Trails Estimates -- Bloomberg

Nationwide retailer Macy’s, Inc. saw its stock bounce  at support levels today as second quarter earnings missed analysts’ estimates for the first time in over six years.  Margins were pressured by cool spring weather and a poor economy, causing increased markdowns.  Share repurchases came in better than expected at $448 million.

Macy’s has revised its full-year earnings growth estimates down to 11%, from 13%. The revised PE is 12.0 and the dividend yield is 2.16%.

Shares are up 17% since we began urging investors to buy Macy’s stock in February.  Growth & income investors should accumulate shares below $48, and growth stock investors should look elsewhere for strong growth opportunities.

Our Ransom Note trendline says:  HOLD MACY’S.

M Chart

M data by YCharts

Stock number two is: 

MannKind Corp., (SYMBOL: MNKD) and the headline says: MannKind diabetes therapy succeeds in late-stage studies -- Reuters

Biopharmaceutical maker MannKind Corporation reported today on two Phase III studies of its dry-powder insulin inhaler device, called AFREZZA, which maintains blood glucose levels in diabetes patients.  The ultra rapid-acting mealtime insulin therapy achieved success in controlling hypoglycemia, fasting blood glucose levels, and body weight.  Both studies achieved their primary efficacy endpoints and were more effective than insulin and oral diabetes treatments.

After a long string of net losses, MannKind may begin earning a profit in 2015. The stock is in a trading range of $6 to $8 per share, and could appeal to aggressive growth investors or traders.

Our Ransom Note trendline says..... HOLD MANNKIND.

MNKD Chart

MNKD data by YCharts

Stock number three is:

JPMorgan Chase & Co., (SYMBOL: JPM) and the headline says: U.S. FILES CRIMINAL COMPLAINT IN JPMORGAN CHASE & CO "LONDON WHALE" CASE --  Reuters

The U.S. attorney will announce charges of wire fraud, falsifying books and records, making false SEC filings, and conspiracy today against two former J.P. Morgan employees.  The men allegedly manipulated a credit portfolio to hide half a billion dollars of losses, causing JPMorgan to overstate first quarter 2012 earnings by several hundred million dollars.

Earlier this year, we encouraged investors to look elsewhere for financial stocks, based on weaknesses in JPMorgan’s capital plan, and very slow projected earnings growth.

The stock is on an uptrend, trading between $54 and $57.  We encourage investors to look elsewhere for financial stocks with strong earnings growth and fewer legal problems.

Our Ransom Note trendline says....  HOLD JPMORGAN CHASE.

JPM Chart

JPM 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.