GE Bets on Solar, But I Don't Bet on GE

John Ransom | June 10, 2014 3:35 PM

Welcome to John Ransom’s Stocks in the News where the headlines meet the trendlines.

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Stock number one: Molson Coors

Molson hits new highs—Yahoo Finance

Molson Coors (TAP) is making all-time highs today. The growth - up 26% so far this year - is in part due to increased international sales and also helped by an improving employment picture here at home. When Americans have disposable income they use it to buy beer. It's as simple as that. Molson Coors, the second largest beer company in North America has had a better year than their top 15 competitors worldwide. The next round is on you Molson Coors.

Symbol: TAP

Trailing PE: 19; Forward PE: 17

PEG: 2.10

Dividend: 2.30%

Estimate Trend: Up

Ransom Note Trendline: Hold Molson Coors

TAP data by YCharts

Stock number two: eHealth

Why Young Sign-Ups Aren't A Healthy Sign--Investor's Business Daily

But Internet-based eHealth (EHTH), which in May released data on ObamaCare plan applications over the prior six months, seemed to offer great news: 42% of enrollees were in the key young-adult demographic.

A Risk Pool Of Their Own

Yet a closer analysis explains why the eHealth enrollment data, rather than cause for celebration, reflect a largely missed opportunity in the near term and a likely cause of regret in years to come. The reason: 14% of eHealth enrollees opted for catastrophic coverage, including close to half of 18- to 29-year-olds. Under ObamaCare, catastrophic plans cover a younger and healthier risk pool that is separate from the main pool comprising bronze, silver, gold and platinum policyholders.

One of the things that has helped drive industrial stocks like General Electric and United Technologies is their focus on the highest-potential areas in their vast conglomerate businesses. For instance, General Electric has no shortage of industries it could seek to dominate, but for the most part, it has chosen to concentrate on the opportunities in the energy arena to define its future. Today, for instance, General Electric said that it had invested in a Japanese photovoltaic solar-power project, with 32 megawatts of capacity expected to begin producing power in early 2016.

Symbol: GE

Trailing PE: 22; Forward PE: 15

PEG: 1.89

Dividend: 3.30%

Estimate Trend: Flat

Ransom Note Trendline: Avoid GE