Stocks in the News: Ford Exceeds Expectations Again

Posted: Sep 05, 2013 12:01 AM

Stock number one is: 

Ciena Corp., (SYMBOL: CIEN) and the headline says: CIENA REPORTS FISCAL THIRD QUARTER 2013 FINANCIAL RESULTS -- Reuters

Network specialist Ciena Corporation surprised Wall Street with a strong earnings beat, record quarterly revenue of $538 million, and expectations of record revenues again in the fourth quarter.

Ciena has not earned a full-year profit since 2008, but is on track for solid profits this year, climbing another 88% next year to record numbers.  Caution is warranted, as the PE is 44, and the company has a very high long-term debt ratio.

Ciena shares are up 21% since we called Ciena a trading buy on June 6.  The stock will likely trade between $21 - $23.50 in the short-term, then break out on the upside, with medium-term resistance at $28.  Experienced traders and aggressive growth investors should try to buy on a bounce to $21.

Our Ransom Note trendline says:  BUY CIENA CORP.

CIEN Chart

CIEN data by YCharts

Stock number two is: 

Ford Motor Company, (SYMBOL: F) and the headline says: U.S. auto sales on pace for best month since November 2007 -- Reuters

Ford reported August retail sales up 20 percent to their highest levels since 2006, with total sales up 12.2%.  Fourth-quarter production will be up 7 percent year-over-year.

Earnings are expected to grow 9% this year, rising to 14 and 25 percent growth in 2014 & ’15.  The PE is 11, and the dividend yield is 2.37%.

Ford shares are up 26% since we said “buy” on May 2.  We then cautioned investors after two big price run-ups since May, but now that the August price correction appears to be over, we are again bullish on Ford shares.  There’s medium-term resistance just under $19.

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

F Chart

F data by YCharts

Stock number three is:

Apple Inc., (SYMBOL:  AAPL) and the headline says: Cantor Fitzgerald Starts Apple at Buy with $777 Target --

Cantor Fitzgerald is bullish on shares of tech giant Apple Inc.  “Apple is on the verge of an extended product cycle that we believe will include a refresh of existing products, increased penetration within existing device categories and entirely new market opportunities,” says Cantor analyst Brian White.

Apple will unveil new models of the iPhone in the U.S. and China on Sept. 10th and 11th, and might also reveal a new, long-awaited partnership with China Mobile.

Shares are up 19% since we called Apple a trading buy on July 2. Full-year earnings are expected to fall 11% this year, followed by slow growth, but there are investors who love to own Apple.  Apple bulls should accumulate shares under $490. Everyone else should look for stocks with strong earnings growth.

Our Ransom Note trendline says....  HOLD APPLE.

AAPL Chart

AAPL 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.