Stocks in the News:
Stock Number One: Ford (F)-
And the headline says:
Ford Leads the Way for September Sales- The Wall Street Journal
“U.S. auto sales lost about 5% in September due to a calendar variation, but Ford (F_) had a 6% gain.” writes Ted Reed in the Street.com.
Ford sales were led by the popular F-150 which has seen the most robust sales since 2006. Just imagine what would happen if Ford was free to sell cars Americans wanted. Oh that’s right, It’s GM that’s hampered by government intervention. GM sales fell in September by 11 percent.
Ford is trading about 9.8 times trailing earnings, on revenue of $142.5 billion.
Analysts expect Ford’s earnings to grow by 15 percent next year, but only by about 3 percent over the next five years.
Our Ransom Note Trendline says: Stay Neutral on Ford
Stock number two: Microsoft (MSFT)-
And the headline says:
This Tax Dispute Could Complicate the Nokia-Microsoft Deal- The Cheat Sheet.
“According to a report from The Wall Street Journal, Nokia’s bank accounts in India were unfrozen on Friday, but some of the company’s other assets — including its buildings and facilities — remain frozen. The freezing of Nokia’s large smartphone factories in India could interfere with the sale of the company’s devices and services unit to Microsoft (NASDAQ:MSFT),” writes Jacqueline Sahagian in the Cheat Sheet,
Microsoft is trading 11 times 2015 projected earnings on $78 billion in revenue.
Analysts expect slow growth this year and next with growth rates projected around 11.5 percent over the next five years. Microsoft recently unveiled their tablet which draws mixed reviews.
Still the dividend yield is decent at 3.4 percent.
But investors looking for growth in the tech sector should look elsewhere.
Our Ransom Note Trendline says: Avoid Microsoft
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Stock Number Three: Barrick Gold (ABX)-
And the headline says:
Terrible Fundamentals, Not Government Shutdown, Sink Gold- The Street.com
“Buying interest in physical gold slipped in September as retail investors chose silver's reduced cost against the yellow metal, BullionVault -- the world's largest online physical provider of precious metals -- reported Tuesday. Its Gold Investor Index dropped to 53 from 53.8 the prior month. Any reading above 50 indicates more buyers than sellers in the market,” says the Street.com
Barrick’s been on a downtrend since hitting a high in April 2011 over $50 a share.
The stock printed today at $17.95, largely reflecting the hit to gold prices.
Profit margins have shrunk 71% over the last trailing 12 months, on revenue of $14.3 billion.
Barrick has total cash of $2.42 billion, which is strange on it’s face- shouldn’t that cash be in silver or gold?
NO! Sales are going nowhere for Barrick right now and that’s expected to continue.
Or Ransom Note Trendline says: Don’t touch Barrick with gloves on.
