Welcome to stocks in the news where the headline meets the trendline.
Stock Number One: Micron Technology, Inc. (SYMBOL: MU)
And the headline says 5 Rocket Stocks Worth Buying This Week—Street.com
Increasing analyst sentiment is the reason for this stock's presence on our Rocket Stocks list,” writes the Street.com.”2013 has been a blockbuster year for Micron Technology (MU); shares of the flash memory maker have rocketed more than 161% since the calendar flipped over to January this year. And the big industry tailwinds pushing at Micron's back aren't showing any signs of slowing down right now.”
Analysts have revised the next quarter earnings outlook up from $.24 90 days ago to $.42 as a consensus estimate currently. That’s a pretty big move.
There’ve been 11 revisions upward for the quarter in 15 revisions upward for next quarter, with analysts doubling 2014 estimates.
The company trades about 14 times this year’s earnings in about seven times next years earnings.
That’s pretty significant. The company is recently coming off of 52-week high. You can use this pullback as an entry point
Our Ransom Notes Trendline says: Buy Micron Tech
Stock number two: Fauquier Bankshares Inc (SYMBOL: FBSS)
And the headline says: Local banks still hold about half of county market share – Fauquier Now.
“Despite the changes that corporate consolidation and technology have wrought, local financial institutions continue to hold almost half of the Fauquier County banking market,” reports Fauquier Now. “Three banks headquartered in Fauquier and Middleburg had 47.9 percent of the $1.34-billion market, according to the Federal Deposit Insurance Corp.’s annual summary, released last week.”
Fauquier trades about one times it’s book value, enjoys a dividend yield of 3.6% with quarterly revenue growth of 37%
I love community banks. This company is hitting a new highs not seen for some time.
Now let me tell you why one can ‘t buy this company.
It’s thinly traded.
A big day recently has been 15,000 shares. Its average trading volume is 2,600 shares.
Once you get in a stock like this, you have to be able to get out.
Our Ransom Note Trendline says: Avoid Fauquier Bankshares
Stock Number Three: SOHU (SYMBOL: SOHU)
And the headline says: Sohu, Changyou plunge on quarter– OptionsMonster
“The Beijing-based web portal reported an unexpected third-quarter loss of $65 million, citing higher costs and a special dividend,” reported OptionsMonster earlier today. “Even worse was disappointing numbers from Sohu's online-game subsidiary Changyou.com, which missed earnings expectations. SOHU is down more than 9 percent to $74, while CYOU plunging about 16 percent to $30 in the pre-market.”
What the price-earnings ratios give, the price-earnings ratios can take away.
The company’s currently trading around 29 times earnings, the stock price is up about 115% over the last year on fast growth.
But not quite fast enough, it would seem.
Our Ransom Note Trendline says: Sell Sohu
