Welcome to John Ransom’s Stocks in the News where the headlines meet the trendlines.
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Stock number one: TRW Automotive Holdings Corp.
TRW/ZF: Safety first—Financial Times
In those dark days more than five years ago, one of those parts makers – TRW Automotive – saw its shares crash to around a buck. Compared to that, the takeover price of $105.60 Germany’s ZF Friedrichshafen will pay for TRW looks spectacular. Yet that price is only a 15 per cent premium to TRW’s price in July, when deal discussions were disclosed. With TRW poised to benefit from the eventual rollout of driverless cars, the price looks lower still.
Symbol: TRW
Trailing PE: 12; Forward PE: 12
PEG: 1.09
Dividend: NA
Estimate Trend: NA
Ransom Note Trendline: Sell TRW
Stock number two: Molson Coors Brewing
Why Molson Coors Brewing (TAP) Stock Is Jumping Today --The Street.com
Shares of Molson Coors Brewing Co. (TAP_) are higher by 7.27% to $77.02 on Monday morning, as beer brewing stocks get a boost from SABMiller's (SBMRY_) offer to acquire the Netherlands-based beer manufacturer and seller, Heineken.
Heineken turned down SABMiller's offer, issuing a statement on Sunday saying it intends to remain an independent company.
Symbol: TAP
Trailing PE: 20; Forward PE: 17
PEG: 2.34
Dividend: 2.20%
Estimate Trend: Up
Ransom Note Trendline: Hold Molson Coors
Stock number three: Bankrate, Inc.
Bankrate facing SEC investigation; CFO resigns --Associated Press
Bankrate said Monday that the Securities and Exchange Commission is performing a formal investigation related to its financial results from 2012. The online publisher of financial data also announced that its chief financial officer has resigned.
The company said that the SEC investigation is mostly focused on the first and second quarters.
Symbol: RATE
Trailing PE: NA; Forward PE: 15
PEG: 1.07
Dividend: NA
Estimate Trend: Up
Ransom Note Trendline: Avoid Bankrate