Value Traps?

John Ransom | October 29, 2014 2:04 PM

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

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Stock number one: Freeport-McMoRan Inc.

Freeport’s Profit Declines-- Wall Street Journal

Freeport-McMoRan Inc. on Tuesday said its third-quarter earnings fell 32%, as weaker average prices for copper, gold and oil weighed on revenue.

Phoenix-based Freeport reported a profit of $562 million, or 53 cents a share, down from $830 million, or 79 cents a share, a year earlier. The latest period included net charges of 11 cents a share for items such as accounting adjustments and asset sales gains.

Symbol: FCX

Trailing PE: 12; Forward PE: 11

PEG: .0.34

Dividend: 4.10

Estimate Trend: NA

Ransom Note Trendline: Buy Freeport McMoran.

Stock number two: Alcoa Inc.

Judge hears NC challenge to Alcoa's rights to dams --Associated Press

A dispute between North Carolina officials and Alcoa Inc. over the right to control the water and electricity coming from the state's second-largest river system was set to go before a federal judge Wednesday.

Garmin Ltd. (GRMN) reported its third-quarter results Wednesday before the market opened as $0.76 in earnings per share and $706 million in revenue. Thomson Reuters had consensus estimates of $0.71 in earnings per share and $677.35 million in revenue for the quarter. In the third quarter of the previous year, Garmin reported $0.69 in earnings per share and $643.64 million in revenue.

Symbol: GRMN

Trailing PE: 16; Forward PE: 18

PEG: 2.74

Dividend: 3.50%

Estimate Trend: NA

Ransom Note Trendline: Sell Garmin