US Steel Rocks for 30 Days

John Ransom | August 07, 2014 2:35 PM

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

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Stock number one: Walgreen Co.

Walgreen turns down inversion that would cut tax bill. —The LA Times

Walgreen Co. plans to keep its roots firmly planted in the United States, saying it will no longer pursue an overseas reorganization that would have trimmed its U.S. taxes but which drew political scorn.

The nation's largest drugstore chain, which bills itself as "America's premier pharmacy," said Wednesday that it will buy the remaining stake in Swiss health and beauty retailer Alliance Boots that it does not already own.

Symbol: WAG

Trailing PE: 21; Forward PE: 16

PEG: 1.16

Dividend: 1.7%

Estimate Trend: Mixed

Ransom Note Trendline: Avoid Walgreens

Stock number two: Sprint Corporation

Sprint May Finally Be Ready for Lift-Off as the Bears Descend--The Street.com

Right now it seems no one likes Sprint (S_).

Its decision to stop pursuing a merger with T-Mobile US (TMUS_) caused a drop of 20% in the shares in just one day. Sprint opened today at $6, then dropped 10 cents, a price last seen in October. It is now at $5.93, down 45% for the year to date and down nearly 15% for the past 52 weeks. Most analysts have moved on to looking at other potential T-Mobile merger partners.