Seeking Alpha
  • Is Ambarella A Good Investment?
    AMBA Today, 2:38 PM IAEResearch Comment!

    Summary

    • The stock price has followed the strong growth in fundamentals and the stock is up over 108% during the last twelve months.
    • Despite a massive rise in stock price, the stock is still trading at lower multiples compared to the industry averages.
    • Growth prospects remain strong for almost all the segments of the company.
    • GoPro is the largest contributor toward Ambarella's revenues and demand from GoPro will remain strong as the company launches its new product at the end of this year.
    • GoPro's sales are growing at an impressive rate, which means there is danger of lower supplier orders from GoPro.
  • 4 Solid Reasons To Consider Republic Services
    RSG Today, 2:34 PM ICRA Online Ltd. Comment!

    Summary

    • Republic Services, the second-largest waste hauling company in North America after Waste Management Inc., is giving better returns than the industry average.
    • The company has posted decent second-quarter results and declared a dividend hike of 7.7%.
    • It has a solid business model, and is fundamentally strong.
    • Republic Services is managing its expenses and debt well.
  • Can A Successful Dividend Portfolio Be Assembled In 2014? - Part 3
    AHGP, BAX, BBEP Today, 2:34 PM Bob Wells Comment!

    Summary

    • 2014 continues to find an increasing number of overvalued dividend stocks.
    • This can present a real challenge to new self-directed investors.
    • Part Three of this series continues our exploration of the question: Should recently retired investors build their portfolio in the current environment?
  • IHS Dip On Earnings May Present Golden Opportunity
    IHS Today, 2:26 PM Alpha Generator Comment!

    Summary

    • IHS, an information services company, announced earnings today.
    • The company beat on EPS and revenue but is trading sharply down today on uncertainty regarding future growth prospects.
    • Revenue growth is growing across geographies and business segments and should give the bullish case some support.
    • The earnings beat may have been priced in, causing today's profit-taking, but bears also have room to argue the stock is too expensive and earnings have been too uncertain.
    • This is a company that warrants further research after today's earnings announcement.
  • Targeting Benchmark Size Exposures With Smart Beta Indexes
    DON, EZM, DIM Today, 2:22 PM WisdomTree Comment!
  • Latin America Rising: 4 Countries To Focus On In September
    DBBR, EWO, EWY Today, 2:18 PM Accuvest Global Advisors Comment!

    Summary

    • Latin American countries are quickly climbing in the model.
    • Mexico and Brazil are our two fastest rising countries.
    • Austria and South Korea are falling in our rankings.
  • The Purest Play In The Cannabis Wave And It Trades On The NYSE
    XXII Today, 2:18 PM Shareholders Unite 2 Comments

    Summary

    • Having unique IP that lets the company regulate nicotine levels of tobacco genetically, 22nd Century Group (XXII) acquires licenses in technology that can do the same for HTC levels in hemp.
    • In a stroke, it becomes the only NYSE listed company in the cannabis space, a fast growing market and the technology opens up several interesting revenue streams.
    • But it's not just a commodity cannabis play, it has unique IP giving it a competitive advantage that is difficult to match, just like in the cigarette business.
  • Brazil: Investor Optimism Resting On Thinning Foundations
    Editors' Pick EWZ, BRZU, BZQ Today, 2:16 PM Alpha Now at Thomson Reuters Comment!

    Summary

    • Ms Rousseff’s political brinkmanship is depriving the Brazilian economy of a credible fiscal anchor, weakening the hand of the next administration – whoever wins October’s election.
    • Meanwhile, the decade-long decline in Brazil’s unemployment rate may be coming to an end, aggravating the economy’s stagflationary dynamics.
    • Strong performance of local financial assets has been driven by expectations related to October’s result; as we close in on the election, further gains are likely to come with volatility.
    • Once political considerations move from centre stage, however, investors will need to shift their attention back to a challenging set of ‘initial conditions.
    • In this environment, positive market momentum will become increasingly difficult, if not impossible to sustain.
  • Update: ConAgra Foods' Earnings
    CAG Today, 2:10 PM Daniel Jones Comment!

    Summary

    • Shares of ConAgra rose after reporting strong non-GAAP earnings but sales that fell short of forecasts.
    • This news confirms my suspicion that the business is risky but helps to alleviate some fears to some extent.
    • In my previous work on the business, I highlighted that troubling results in recent years could remain an issue in the years to come.
  • VXST Futures - Not A Bad Proxy For The VIX Index
    VXX, UVXY, TVIX Today, 2:10 PM Vance Harwood Comment!
  • Marcus Earnings May Represent Inflection Point
    MCS Today, 2:07 PM Alpha Generator Comment!

    Summary

    • Marcus Corporation reported earnings this morning, missing on EPS but beating on revenue.
    • This may be an inflection point for the company and investors might conduct additional diligence going into the next quarterly report.
    • Revenue from theatre admissions and revenue from theatre concessions are mismatched in terms of year-over-year growth, raising questions regarding management's pricing decisions.
  • FedEx Is A Poster Child For Overvalued
    FDX Today, 2:03 PM Stock Traders Daily 1 Comment

    Summary

    • FDX is overvalued based on EPS growth.
    • FDX is also at long term resistance.
    • If you want to buy and overvalued stock at resistance, look no further.
  • Update: Oncolytics Announced Data From Phase II Study, Shares Plummeted
    ONCY Today, 2:01 PM Andy Batts 1 Comment

    Summary

    • Oncolytics announced overall and KRAS-mutated patient data from its Phase II pancreatic cancer study.
    • In my original analysis I said that REOLYSIN is expected to work on some of the most prevalent forms of cancer.
    • Although the study missed the primary endpoint, I feel this is in the price of the stock. For a development-stage company, volatility in stock price is not unusual.
  • Why Cisco Shares Are Undervalued By 35%
    CSCO Today, 1:55 PM Stock Market Sherpa Comment!

    Summary

    • Cisco Systems generates impressive free cash flow and has more than $10 per share in cash on the balance sheet.
    • The shares currently yield 3% and the company possesses the financial flexibility necessary to significantly increase the quarterly dividend in the years ahead.
    • Although the S&P 500 is currently trading near its all-time highs, Cisco shares appear reasonably priced, trading in line with their long term valuation averages.
    • A Gordon Growth Model analysis shows that Cisco shares are undervalued by 35%.
  • Visual Data: Treemaps
    AMLP, AMJ, MLPI Today, 1:52 PM Alerian Comment!
  • Update: Pier 1 Imports Earnings - A Fire Sale
    PIR Today, 1:44 PM Marshall Hargrave Comment!

    Summary

    • The company missed consensus on the top and bottom lines sending shares tumbling by over 17%.
    • Our bullish thesis has turned into one of even more bullishness as the market focuses too much on the near-term.
    • We didn’t anticipate the recent miss and subsequent sell-off, but note the miss comes as the company shifts toward an omnichannel retailer.
  • Sony Should Let Go Of Its Smartphone Business
    SNE Today, 1:42 PM Daniel James 1 Comment

    Summary

    • Sony has been struggling with slowing sales over the last decade.
    • Smartphones especially have proven to be a difficult category for the Japanese electronics giant.
    • Strength in its gaming division suggests that it perhaps should let go of its underperforming segments and focus on the profitable ones.
  • Whisper Number Impact: How Will Red Hat Investors React To Earnings?
    RHT Today, 1:41 PM WhisperNumber Comment!

    Summary

    • The whisper number is $0.43, five cents ahead of the analysts' estimate.
    • Red Hat has a 63% positive surprise history (having topped the whisper in 29 of the 46 earnings reports for which we have data).
    • The overall average price move is 'as expected' (beat the whisper number and see strength, miss and see weakness) when the company reports earnings.
  • Spot Uranium Jumps Higher: Is Putin Putting Pressure On Global Uranium Supply?
    ARVCF, CCJ, DNN Today, 1:38 PM Jeb Handwerger Comment!

    Summary

    • Spot uranium price rebounding strong over the past few weeks, rallying more than $3 per lb or more than 10% in a short timespan.
    • End users such as the nuclear utilities with deep pockets need safe and secure long term supplies from stabile jurisdictions.
    • Recent sanctions with Russia could already be putting pressure on uranium supply. Europe and the U.S. relied on cheap uranium from Russia for decades.
    • What happens when the cheap uranium runs out? Look for off take agreements, M&A and strategic equity investments in junior uranium miners.
    • Sanctions on Russia and Putin could be putting pressure on the supply side of uranium.
  • Samsung: Priced Way Below Intrinsic Value
    SSNLF Today, 1:28 PM Nikola Sesic 7 Comments

    Summary

    • Samsung now reminds me of Apple of about a year ago. Apple stock price increased more than 50% since then.
    • Looking past the current events of shrinking market share and lower profits, we find Samsung deeply undervalued.
    • Using DCF valuation makes me believe Samsung is a great long-term opportunity.
  • Why Is General Motors Planning To Overhaul Its India Operations?
    GM Today, 1:08 PM ICRA Online Ltd. 3 Comments

    Summary

    • General Motors is focusing on India, a region that could evolve as one of the largest car markets in the globe by another four to five years.
    • It’s planning to roll out a bunch of new cars to compete with arch rivals Ford and Honda and increase its lagging market share.
    • The company plans to tailor cars as per Indian taste to boost sales that have been falling in the past few months.
    • It is also considering making the country an export hub.
  • Sportsman's Warehouse Of Cards To Come Tumbling Down In Q3 And Q4
    Editors' Pick SPWH Today, 1:04 PM Dallas Salazar Comment!

    Summary

    • SPWH should see a continued reduction of top-line, as its inventory fails to move during Q3 and Q4 as a result of pricing and new competition pressure.
    • If SPWH is unable to move its inventory, and its inventory is reduced in value, that would greatly reduce total liquidity at the company.
    • Even at current inventory valuations, SPWH has funding gaps starting in an estimated 6-9 months at stated CAPEX and growth strategies.
  • GoPro: 5 Factors To Push It Lower
    Editors' Pick GPRO Today, 12:59 PM Christopher Wallace 5 Comments

    Summary

    • Stock price infers valuation metrics that are impossibly high.
    • Priced for perfection but has increasing competition.
    • Is merely a camera company but treated like a media company.
    • Showing classic bubble stock trading characteristics.
    • Lock-up stock coming due will increase the float 5 times.
  • Huntsman: Underestimated With 80% Upside Potential
    HUN Today, 12:55 PM Seeking Early Retirement 3 Comments

    Summary

    • Huntsman is making the right moves to grow and become more profitable.
    • Selected investments and restructuring activities will generate additional EBITDA.
    • Managing the portfolio towards more specialized products and better margins justifies a higher valuation in line with its industry peers.
  • Is Oracle Poised To Beat The Whisper Number?
    ORCL Today, 12:55 PM WhisperNumber 2 Comments

    Summary

    • The whisper number is $0.64, in-line with the analysts' estimate.
    • Oracle has a 61% positive surprise history (having topped the whisper in 37 of the 61 earnings reports for which we have data).
    • The overall average price move is 'as expected' (beat the whisper number and see strength, miss and see weakness) when the company reports earnings.
  • AMD's Seattle Chip: Its Advantages Against Intel Xeon D
    AMD Today, 12:54 PM Piyush Arora 9 Comments

    Summary

    • AMD Seattle will sport 64-bit ARM cores.
    • ARM's customizability and lower ASPs should work in AMD's favor.
    • Seattle can ward off competition from Xeon D.
  • AAII Sentiment Survey: Bullish Sentiment Above Average For 6th Week
    SPY, DIA, QQQ Today, 12:52 PM AAII 1 Comment

    Summary

    • Bullish sentiment among AAII members is above average for the 6th week in a row.
    • Neutral sentiment continues to bob above its historical average for the 35th time in 37 weeks.
    • Bearish sentiment continues to remain below average, for the 43rd time in 49 weeks.
  • Commodities Today: An Oil Stock To Buy And Tightening Diamond Market
    BHP, CLR, EMES Today, 12:51 PM Matthew Smith 3 Comments

    Summary

    • Discuss yesterday's Fed moves and the impact upon the precious metals market.
    • Look at the latest report from De Beers regarding the future of the diamond market.
    • Highlight the move in CLR shares as investors sell due to increased spending on wells.
  • Changing My View On Zulily
    Editors' Pick ZU Today, 12:38 PM ONeil Trader 3 Comments

    Summary

    • Zulily has performed poorly in the last five months, which was in line with my prior expectations.
    • Revenue is growing ahead of estimates as the company benefits from rising demand.
    • Short-term margin pressure kept the stock down since the Q2 report.
    • Looking at the potential valuation and upside in the next six to twelve months.
  • The Female Health Company Has Good Growth Prospects
    FHCO Today, 12:26 PM Jonathan Weber 1 Comment

    Summary

    • FHCO has great fundamentals: high returns on capital, high margins, and no debt.
    • The company's FC2 is better than competitors' products.
    • The company's decision to focus on expansion rather than regular dividend payments provides a lot of growth potential.
  • A 10 Year Old's Take On Microsoft's $2.5 Billion Purchase Of Minecraft
    MSFT Today, 12:22 PM Rocco Pendola 8 Comments

    Summary

    • Microsoft is after ubiquity with its purchase of Minecraft.
    • As Apple, Google and others go after Microsoft's enterprise business, Microsoft seeks better standing with consumers.
    • Microsoft can't buy Apple, Amazon or Google-like omnipresence after failing to build it.
  • Why Paccar's Recent Weakness Is A Buying Opportunity
    PCAR Today, 12:19 PM Anup Singh Comment!

    Summary

    • PACCAR shares have declined in the last six months despite consistent results from the company.
    • PACCAR should continue doing well in the future due to its new products and improving truck demand.
    • PACCAR also pays a healthy dividend, and its valuation indicates that the company can deliver growth in the long run.
  • Scotland 'Yes Or No' - Why And How You Need To Hedge The FTSE 100 / 250 And Gilts
    EWU Today, 12:07 PM Boost ETP Comment!

    Summary

    • Scotland’s referendum on independence is too close to call. Markets disliking uncertainty are putting pressure on UK’s currency and credit markets, driving downside risk to UK equities.
    • Secession weakens the economic fundamentals for Scotland, exposes the rest of the UK to unwarranted credit risks, UK mid and large cap equities are at risk of being de-rated.
    • Until the dust settles it may be prudent to hedge long positions in UK bonds and equities.
  • Disney: Jedis And Avengers To Smash The Consensus In Coming Years
    DIS Today, 12:01 PM Fresh Insight 3 Comments

    Summary

    • Disney Studio could soon have eight to nine blockbusters a year vs. four or five currently. The unit is on track to double revenues and earnings in coming years.
    • The increasing success of the Studio business will also give a boost to the Consumer Products and Theme Parks units.
    • While the consensus expects Disney to grow earnings in the low teens, I believe that growth in the high teens is more likely and that the consensus will keep increasing.
  • More Thoughts On The Fed And ECB
    UUP, UDN, FXE Today, 11:52 AM Marc Chandler Comment!

    Summary

    • TLTRO was disappointing, but some mitigating factors may deter policy response.
    • December offering is more important, after AQR and stress test.
    • Fed policy signal is generated by the FOMC statement more than dot-plot and minutes.
  • A Growth Story That Has Just Begun
    LULU Today, 11:52 AM Adam Levine Comment!

    Summary

    • Despite the surge in LULU's stock price, I am still bullish on the company's growth potential.
    • A discussion about Ivivva Athletica explaining how LULU is developing the next generation of its adults' brand.
    • Lululemon targets men's market share.
  • AGCO Has A Great Future
    AGCO Today, 11:47 AM Economics Fanatic 1 Comment

    Summary

    • AGCO, with its production innovation, is well positioned to grow steadily in the agriculture sector.
    • Low crop yield in emerging countries along with high level of harvest related losses are opportunities for AGCO.
    • Food demand is expected to grow by 60% by 2030 as compared to 2012 and this will keep demand for the company's products stable.
  • What Will Be The Impact Of Shield On Nvidia?
    NVDA Today, 11:43 AM IAEResearch 1 Comment

    Summary

    • A successful entry in the rapidly-growing tablet market will result in improved margins as well as fundamentals of the company.
    • The addition of new features will make Shield even more attractive to customers and the product will get a good reception from the market.
    • The market has the potential to grow at an average annual rate of 9% over the next three years, which should allow Nvidia to grow revenues at an impressive rate.
  • Yahoo Japan: Trade Against The Unwinding Of Alibaba Synthetic Notes
    YAHOF Today, 11:40 AM Michael Collins 1 Comment

    Summary

    • Yahoo Japan provides an interesting trade against the unwinding of Alibaba's synthetic notes.
    • Alibaba's synthetic contracts involve shorting certain Japanese stocks and short covering has begun.
    • Yahoo Japan, a Goldman Sachs conviction list member, may be the best vehicle for the trade to front run ahead of the short covering.
  • Update: Auxilium Could Be Acquired By Endo, What Shareholders Should Do Now
    AUXL Today, 11:36 AM Andy Batts Comment!

    Summary

    • Endo International offered a proposal to takeover Auxilium Pharmaceuticals.
    • In my original article I said that Auxilium was dirt-cheap at $17-18.
    • The takeover bid confirms my investment thesis.
  • Continental Resources: The Big Promise Of The Anadarko Basin
    Editors' Pick CLR Today, 11:33 AM Richard Zeits 9 Comments

    Summary

    • Continental substantially increased resource estimates for its Anadarko Basin asset.
    • The announcement of the Springer Shale discovery is important, given that the play will add to the “core of the core” drilling inventory.
    • The positive read-across is to Newfield, Cimarex, Marathon and Devon.
  • Endo's Bid For Auxilium Makes Sense
    ENDP Today, 11:32 AM Stephen Simpson, CFA Comment!

    Summary

    • Endo publicly announces its desire to acquire Auxilium for $28.10 per share.
    • Auxilium is currently playing it cool, but Endo's deal offers credible sales synergy, a chance to maximize the value of Xiaflex, and good cost and tax leverage for Endo.
    • Endo has room to up its bid, but the company's deal pipeline is reportedly pretty healthy and management likely won't overpay for Auxilium.
  • Adecoagro Has Strong Upside Potential
    AGRO Today, 11:30 AM Economics Fanatic 2 Comments

    Summary

    • Adecoagro is undervalued based on the market valuation of its farmland.
    • An increase in crushing capacity by March 2015 will boost the company’s growth and will take the stock higher.
    • Continued sale of farmland assets at premium over appraised value will keep financial flexibility high and help fund core operations.
  • Is Cummins A Good Stock To Buy?
    CMI Today, 11:27 AM Winning Strategies Comment!

    Summary

    • The favorable business environment will drive potential growth for Cummins business.
    • The company’s penetration in on-highway markets and expansion of its distribution business will allow it to post record profits.
    • Cummins is a good buy on the dip.
  • Watch Makers To Benefit From Apple Watch
    AAPL, FOSL, MOV Today, 11:26 AM J. M. Manness 6 Comments

    Summary

    • Several Watch groups have seen share prices fall over the last year.
    • They have all fallen since the announcement of the new Apple Watch.
    • Many think the new product from Apple will steal sales.
    • Why I disagree.
  • Exelon Corp.: Nuclear Driven
    EXC Today, 11:26 AM James Bjorkman 2 Comments

    Summary

    • Exelon Corp. has had a difficult time the last few years, being forced to cut the dividend and engaging in massive capital expenditures;
    • The company's acquisition of Pepco appears to be a major step forward in Exelon's plan to bring more of its operations under the regulatory rubric;
    • Exelon still has issues, most importantly relating to its expensive nuclear plants, but the dividend now appears secure and the company trades at a fair value.
  • Can Agnico Eagle Mines Continue Beating The Market?
    AEM Today, 11:25 AM Anup Singh 1 Comment

    Summary

    • Agnico Eagle is delivering tremendous growth and recently turned in a profit.
    • Agnico Eagle's focus on improving its production profile should lead to better performances in the long run.
    • Agnico Eagle's bottom line is expected to grow in the double digits in the next five years.
  • CVS Health Corporation: Adapting To The Shifting Market Dynamics
    CVS Today, 11:23 AM Balanced Investing Comment!

    Summary

    • The company’s top line witnessed a double digit growth of 10.7% during the second quarter of 2014 and reported absolute revenue of $3.4 billion.
    • Revenue growth was achieved as revenue per mail choice claim rose by 29.7%, pharmacy claims processed increased to 230.9 million, revenue per pharmacy network claim processed increased by 8%.
    • The company’s generic sourcing venture with Cardinal Health prepares it to seek full advantage of the increasing generic drug usage trend.
    • The company’s net profit margin had remained flat at 3.6% which means that the top line increase had trickled down to the bottom line causing a similar increase in net.
    • The drug store company has delivered a higher return on assets and equity of 7.05% and 12.71%, respectively, compared to peers.
  • SeaDrill: Lessons From The Frontline
    Editors' Pick SDRL Today, 11:21 AM Elliott Gue 25 Comments

    Summary

    • SDRL bears a striking resemblance to FRO, another Fredriksen company that expanded rapidly, paid out most of its cash flow as a generous dividend and relied heavily on leverage.
    • Investors in FRO took a huge hit when overzealous ordering created a persistent supply overhang in the tanker market.
    • We don't expect rig market to collapse like tankers, but supply-demand balance in floaters and jack-ups has shifted in favor of customers, putting SDRL's cash flow under pressure.
    • Don't try to catch this falling knife.
  • Exclusive Interview: Opexa CEO Neil Warma Confident In Company's Value Potential
    OPXA Today, 11:14 AM Trevor Lowenthal 4 Comments

    Summary

    • Opexa stock has plummeted in recent days due to the uncertainty surrounding management's initial plans to conduct a near-term public offering.
    • In light of this uncertainty, I reached out to Opexa CEO Neil Warma for an email interview.
    • Following are revealing excerpts from the interview.