Welcome to John Ransom’s Stocks in the News where the headlines meet the trendlines.
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Stock number one: Broadcom
Broadcom rises after plan to explore options for baseband unit—Fly on the Wall
Shares of Broadcom (BRCM), which provides semiconductor solutions for wired and wireless communications, are rising this morning after the company said it will explore strategic alternatives for its cellular baseband business. WHAT'S NEW: Broadcom said it will explore strategic options for its cellular baseband business, including a possible sale or wind-down, and has hired hired JPMorgan (JPM) to assist.
Symbol: BRCM
Trailing PE: 51; Forward PE: 13
PEG: 1.47
Dividend: 1.50
Estimate Trend: Flat
Ransom Note Trendline: Buy Broadcom
Stock number two: American Realty Capital Healthcare Trust, Inc
Ventas buying ARC Capital Healthcare in $2.6B deal--Associated Press
Real estate investment trust Ventas is purchasing American Realty Capital Healthcare Trust Inc. in a cash-and-stock deal that the companies valued at about $2.6 billion.
The companies each own medical care offices as well as other real estate properties.
Ventas Inc. will pay $11.33 per ARC Healthcare share, a 14 percent premium to its Friday closing price of $9.95.
Symbol: HCT
Trailing PE: NA; Forward PE: NA
PEG: NA
Dividend: 6.80%
Estimate Trend: Flat
Ransom Note Trendline: Sell ARC Healthcare
Stock number three: Puma Biotechnology, Inc.
Puma Biotechnology Shares Tumble +25%, Citi Remains Optimistic Despite 'Challenges -- Benzinga
In a report published Sunday, Citi analyst Yaron Werber warns investors of upcoming challenges for Puma Biotechnology (NYSE: PBYI) following the announcement that the phase 2 monotherapy cohort of [investigational drug PB272] … failed to meet its primary endpoint.
ASCO Meeting: PB272 Results
At the American Society of Clinical Oncology (ASCO) 2014 Annual Meeting, Puma announced the “positive” phase 2 results of the company's investigational drug PB272 (neratinib) for the treatment of HER2 positive metastatic breast cancer that has metastasized to the brain. Despite the initial indications of activity, the company announced serious adverse effects from the drug.
Symbol: PBYI
Trailing PE: NA; Forward PE: NA
PEG: 0.81
Dividend: NA
Estimate Trend: Flat
Ransom Note Trendline: Avoid Puma Biotech
