Ciena Beats but Gets Beat Up

John Ransom | September 04, 2014 2:25 PM

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

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Stock number one: Ciena Corp.

Ciena Down But Investors Hold On For Growth—StockTwits

Ciena Corp.’s earnings beat estimates but shares tanked when it said revenue in the current quarter is likely to be adversely affected due to several variables. Ciena, a provider of fiber optic network equipment for carriers, said revenue might be lower because the timing of potential orders is uncertain and concessions made to AT&T in their recent order. The stock was down 8.43% in midday trading. That’s some reversal from June 6 when the stock had soared 18% after second-quarter profit topped expectations.

Symbol: CIEN

Trailing PE: NA; Forward PE: 14

PEG: 1.29

Dividend: NA

Estimate Trend: NA

Ransom Note Trendline: Sell Ciena

Stock number two: Transocean Ltd.

Halliburton, Transocean Cleared of Gross Negligence --Bloomberg

Halliburton Co. (HAL) and Transocean Ltd. (RIG) were cleared of gross negligence for their roles in the biggest U.S. offshore oil spill, allowing the companies to avoid the harshest penalties from the 2010 Gulf of Mexico disaster. U.S. District Judge Carl Barbier ruled today that BP Plc, which owned the Macondo well, was “reckless” leading up to the accident, which killed 11 people and spewed oil for almost three months into waters that touch the shores of five states.

Shares of Matrix Service Co. (MTRX_) are falling by -24.30% to $22.05 on heavy volume in mid-morning trading on Thursday, after the company reported fiscal 2014 fourth quarter net income, and full year 2015 earnings per share estimates that fell short of analysts' expectations. The company, which provides engineering, fabrication, construction, and maintenance services to a variety of industries including oil, gas, power and petrochemical markets, said net income for the most recent quarter was $7.6 million, or 28 cents per share.

Symbol: MTRX

Trailing PE: 17; Forward PE: 11

PEG: 1.65

Dividend: NA

Estimate Trend: Up

Ransom Note Trendline: Avoid Matrix Service