Welcome to John Ransom’s Stocks in the News where the headlines meet the trendlines for January 28th:
Stock number one: Rent-A-Center, Inc..
Rent-A-Center plunges after 'most challenging December in years' dings profit- Fly on the Wall
Rent-to-own operator Rent-A-Center (RCII) is one of today's losers after the company's fourth quarter results and fiscal 2014 profit guidance fell significantly below expectations. WHAT'S NEW: Last night, Rent-A-Center reported fourth quarter earnings per share of 25c and revenue of $769.6M, compared to analysts' consensus estimates of 75c and $787.95M, respectively. Same-store sales declined 1.1% for the company in the quarter.
Symbol: RCII
Trailing PE 8.64; Forward PE: 7.27
PEG: 0.81
Dividend: 3.00%
Estimate Trend: Down
Ransom Note Trendline: Sell Rent-A-Center
Stock number two: VimpelCom Ltd.
Russian mobile firm Vimpelcom slashes dividend, spooking investors
- Reuters
Vimpelcom, Russia's third biggest mobile operator, said it would slash its dividend to pay down debt piled up in an aggressive expansion drive, marking an unexpected policy shift that spooked shareholders. Vimpelcom's expansion into Africa, Asia and continental Europe left the group with more than $20 billion in debt, according to its latest quarterly results.
Symbol: VIP
Trailing PE: 8.42 Forward PE: 8.57
PEG: 3.24
Dividend: 7.8% from 13.7%
Estimate Trend: Down
Ransom Note Trendline: Sell Vimpelcom
Stock number three: Corning Inc.
Corning Shares Slide on Forecast for Price Drop in LCD Screens - Fly on the Wall
Corning Inc. (GLW) tumbled the most in more than a year after projecting price declines for LCD, the display technology used in televisions and computer monitors.
Corning shares fell 6.1 percent to $17.11 at 12:05 p.m. in New York. The stock had dropped as much as 9.2 percent earlier in the day, the most since October 2012. After gaining 41 percent in 2013, Corning had been up 2.2 percent this year through yesterday.
Symbol: GLW
Trailing PE: 14.21; Forward PE: 11.28
PEG: .88
Dividend: 2.20%
Estimate Trend: Down
Ransom Note Trendline: Avoid Corning
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