Welcome to stocks in the news where the headline meets the trendline.
Stock Number One: ViroPharma Inc. (SYMBOL: VPHM)
And the headline says: Shire to pay $4.2 billion for rare disease firm ViroPharma– Reuters
“London-listed Shire is buying ViroPharma for $4.2 billion,” reports Reuters, “its biggest deal yet to strengthen its portfolio of lucrative drugs to treat rare diseases, which are attracting increasing attention from drugs companies as patents expire on their older treatments. Several companies including France's Sanofi, according to reports, were interested in ViroPharma, which makes Cinryze for the treatment of immune disorder hereditary angioedema.”
And right on time our friends, attorneys Levi & Korsinsky, Faruqi & Faruqi, Brower Piven will be investigating the deal to see if they can sue their way into some sort of the settlement.
We talked about this phenomenon before where as soon as a buyout occurs the attorneys step up and automatically investigate to see if they can troll for some dollars.
This is one of the reasons why Wall Street doesn’t work. This is one of the reasons why we need tort reform in this country.
Our Ransom Notes Trendline says: Sell ViroPharma
Stock number two: Apple (SYMBOL: AAPL)
And the headline says: Apple's Big iPhone Is a Big Deal– Motley Fool
“Despite the fact that Apple's new iPhone 5s has just been released to the world,” writes the Fool, “the rumor mill (Bloomberg) is already buzzing with claims that Apple is planning to launch two larger iPhones -- one with a 4.7" screen and one with a 5.5" screen. While Apple's move to larger iPhone models is inevitable, the company must be extremely careful about how it manages its suite of smartphone models going forward. Releasing a new, larger iPhone will help address more of the market, but there's a risk that if Apple simply kills the smaller iPhone, it may alienate a substantial number of its customers.”
Apple is currently trading 11 times it’s forward or earnings with an annual dividend of about 2.3%.
Analysts have been revising estimates upwards over the last month or so. In the next five years and also expecting the company will grow what your earnings by 14 to 15% average annually.
From a valuation perspective that means that Apple is a good prospect for growth and income investors.
Our Ransom Note Trendline says: Buy Apple
Stock Number Three: GoGo (SYMBOL: GOGO)
And the headline says: Gogo CEO: 'We're in the Very Early Innings' – Street.com
“Gogo (shares surged 25.8% to $23.59 in trading on Monday after the in-flight Internet company posted results that blew past Wall Street expectations,” says the Street.com. “Gogo posted a third-quarter loss of 22 cents a share as revenue rose 48% from last year to $85.4 million. Service revenue ticked up 52%, led by a 24% increase in the number of airplanes using Gogo's services, and a 21% increase in the average revenue per aircraft (ARPA).”
Here’s another IPO in the technology sector that needs to be avoided.
I love this company, I use this company, but I don’t look at this company as an investment.
Investments have to have some sort of profit, some sort of history, and some sort of discernible future.
That’s missing here.
Our Ransom Note Trendline says: Avoid GoGo
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