Seeking Alpha
  • Target Wants To Be Amazon, But With A Showroom
    TGT Today, 1:08 PM Joel Ladzinski Comment!

    Summary

    • Q2 earnings were in line with revised guidance.
    • No additional information on Canada plan is a problem.
    • Management was extremely optimistic and focused on online sales.
    • Target appears to be headed for big changes as it drives towards its omni-channel goals.
  • Alaska Air Continues To Hold Its Own
    ALK Today, 12:52 PM Stephen Simpson, CFA Comment!

    Summary

    • Delta's efforts to add routes in Seattle continues to generate considerable attention, but Alaska Air's load factor is holding up and Delta seems more interested in supporting its international flights.
    • Alaska Air is adding more routes outside of its historical core base of operations, and is largely avoiding more crowded routes.
    • A fair value estimate of around $50 still suggests some upside, particularly if the company's new routes perform well and the company continues to hold its own against Delta.
  • A Note About Microsoft's Windows 9 Plans
    MSFT Today, 12:31 PM Orange Peel Investments 3 Comments

    Summary

    • Windows 9 will be out next spring; it will be Microsoft's first comprehensive update since Windows 8.1.
    • The new way in which the company will update Windows going forward is far better than past efforts.
    • All in all, a step in the right direction for Microsoft.
  • Is Agilent On The Right Track?
    A Today, 12:04 PM Apex Financial Consultants Comment!

    Summary

    • Agilent’s management expects revenue growth of 3.4% for full fiscal year 2014. The core revenue growth is projected to be 3.7% for the full year.
    • The loss on early extinguishment of debt hurts Agilent Technologies’ net earnings and operating cash flows in the third quarter of FY 13.
    • Overall, the debt reduction has improved the company’s financial stability by improving its debt-to-equity ratio and net cash position.
    • The current economic situation in North America, Europe and the Asia Pacific region suggests that Agilent Technologies will be able to generate even higher revenues in the next quarter.
  • Is MasterCard Relatively Overvalued? See What The Levered Returns Community Thinks
    MA Today, 12:01 PM Musings of a Banker 2 Comments

    Summary

    • Will MasterCard continue to trade at a 16.3x EV/LTM EBITDA multiple?
    • MasterCard's operating segments highlight important growth drivers.
    • My assumptions in the Levered Returns valuation models yield a fair value per share of approximately $72, below its August 26th closing price of $77.00.
  • The Outlook For Nordson Is Positive On A Growing Backlog And Effective Acquisitions
    NDSN Today, 12:00 PM David Zanoni Comment!

    Summary

    • Nordson has multiple growth catalysts including an increasing backlog and recent acquisitions.
    • Nordson is undervalued as compared to its industry and on a discounted cash flow basis.
    • Given the valuation and growth, I think that the stock is likely to outperform the market for the next few years.
  • Update: Contract Wins Continue For Radcom
    RDCM Today, 11:57 AM Mike Arnold, CFA 1 Comment

    Summary

    • Two contract wins with Tier 1 Latin America telcos provides tangible evidence of new use cases for MaveriQ - wireline network customer experience management.
    • This confirms my investment thesis, which is driven by an evolving business model and market adoption of MaveriQ. The new use case increases the addressable market.
    • Management is guiding to "significant growth" year-over-year in 2014; the contract win adds to Radcom's growing backlog.
  • Update: Twitter Added 12 New Countries To Its Ad Network
    TWTR Today, 11:53 AM BB Research 1 Comment

    Summary

    • Twitter has added twelve new countries to its ad network, called Twitter Ads, in the EMEA region.
    • In our original article we said that despite Twitter's user growth remaining sluggish, its ad revenue growth continues to be robust; however, we didn't expect international expansion so soon.
    • The micro-blogging company’s expansion of ad network confirms our thesis that Twitter’s stock is attractively valued.
  • Update: Perseus Mining Updates The Resources At Edikan
    PMNXF Today, 11:42 AM The Investment Doctor Comment!

    Summary

    • Perseus Mining has updated the resources at the Edikan mine in Ghana.
    • Total resources now stand at 7.7 million ounces, reconfirming what I was hoping for before and this re-establishes Edikan as a large scale project.
    • The investment thesis remains unchanged, as it was built around cost controls and not around resources.
  • Can Zynga's 'New Direction' Yield A Turnaround?
    ZNGA Today, 11:40 AM Options Calling 3 Comments

    Summary

    • In Q1 Zynga posted one of the most impressive results since its troubles began.
    • After the emergence of King Digital’s Candy Crush Saga, Zynga’s social gaming market share has been under constant pressure.
    • The new direction of building strong character IPs seems to be setting Zynga on the right direction toward a turnaround.
  • Update: BC Iron Has Updated The Resource Estimate At Nullagine
    BIRNF Today, 11:40 AM The Investment Doctor Comment!

    Summary

    • BC Iron has reported an updated resource estimate at Nullagine, with over 33 million tonnes iron ore.
    • This is in line with expectations, and results in a remaining mine life of 5-5.5 years if the company finds a solution for the clay ore.
    • The investment thesis remains standing, as a limited mine life was widely anticipated.
  • Update: 3D Systems - Short Interest Reaches A New High, That Does Not Sound Good For The Bulls
    DDD Today, 11:36 AM AtonRa Partners 9 Comments

    Summary

    • Short interest spikes to a record 36.87m shares.
    • Short investors did not take their profits in early August and continued to add to their positions.
    • This suggests that many investors now share our view that the expiry of key patents is sparking increased competition and pricing pressures across the industry.
    • We reiterate our negative stance on the stock and our $26 target price.
  • Update: CalAmp's Agreement With Masternaut Strengthens Its Position In Europe
    CAMP Today, 11:33 AM Andy Batts Comment!

    Summary

    • CalAmp announced that it has expanded its supply agreement with Masternaut, Europe's leading MRM services company.
    • In the original analysis I said that CalAmp's revenue could grow at a CAGR of 20% driven by international sales, particularly Europe.
    • CalAmp’s supply agreement expansion with Masternaut confirms my bullish outlook for CalAmp.
  • Sungy Mobile: Should You Catch This Falling Knife Before Its Earnings Announcement?
    GOMO Today, 11:29 AM Henry Cheung 1 Comment

    Summary

    • The number of downloads in Q2 ranked in the top 5 globally.
    • The big money is buying.
    • The stock is at low valuation level.
  • How Does Pentagon Easing Restrictions On F-35 Flights Impact Lockheed Martin?
    LMT Today, 11:21 AM Options Calling Comment!

    Summary

    • Lockheed had to undergo restrictions regarding its F-35 jets by the U.S. Defense Department, causing a delay in the $400 billion project.
    • Lockheed attributes about 17% of overall revenues to the F-35 program.
    • The prospects are already looking hopeful, as the company’s standing is better than it was just a few months ago.
  • Update: BioSpecifics Announces Positive XIAFLEX Data For Cellulite
    BSTC Today, 11:21 AM Andy Batts Comment!

    Summary

    • BioSpecifics announced positive, statistically significant results from a Phase 2a study involving XIAFLEX for potential treatment of cellulite.
    • Previously I shared that top-line 30-day data from Phase Ib study showed that XIAFLEX is effective, safe and well-tolerated for Cellulite.
    • The positive and statistically significant results from the Phase 2a study confirm my bullish outlook for BioSpecifics.
  • Update: Intuitive Surgical's Firefly For Xi Has Been Approved By The FDA
    ISRG Today, 11:08 AM Andy Batts Comment!

    Summary

    • Intuitive Surgical received FDA approval for its Firefly imaging system for its new robotic platform da Vinci Xi.
    • Although I didn’t anticipate the event when I wrote my original analysis, I believe that Firefly can boost the adoption rate of da Vinci Xi.
    • The approval confirms my investment thesis on Intuitive Surgical.
  • Glori's Pit Of Shareholder Value Destruction, -76% Downside
    GLRI Today, 11:01 AM The Pump Stopper 1 Comment

    Summary

    • GLRI’s main product, “AERO”, has never successfully generated material revenue over the past ~10 years. AERO is based on old technology they received essentially for free with miniscule R&D invested.
    • Big oil companies seem to have trialed GLRI’s product and instead of adoption, decided to focus on other technologies.
    • GLRI appears to have failed at oil field development in the past, yet their “new” plan is more oil field development using debt, likely resulting in eventual shareholder wipeout.
    • Now, with a wave of investor conferences and broker promotions I estimate an enormous amount of insider stock is becoming unrestricted to be potentially dumped on the market.
    • My “Best Case” valuation for GLRI is $2.08 per share for -76% downside, while a more realistic outcome is eventual bankruptcy and shareholder wipeout given high debt load.
  • Update: Columbus Gold Mobilizes A Third Drill Rig
    CBGDF Today, 10:57 AM The Investment Doctor 1 Comment

    Summary

    • Columbus Gold has added a third rig for its drill program at Paul Isnard.
    • This wasn’t expected at the start of the drill program, and I’m happy this will speed up the drill program.
    • My investment thesis remains unchanged, and I think Paul Isnard will surprise with the next resource update.
  • Parsley Energy ---- Addressing Inventory Concerns
    PE Today, 10:55 AM Steve Zachritz 2 Comments

    Summary

    • Despite strong economics, market concerns over leasehold have resumed since a strong 2Q14 report.
    • Acquisition addresses this by growing contiguous position in Core and Tier 1 acreage.
    • Bonus: Strong first Tier 1 result.
  • GenMark Diagnostics Hoping To Make Its Mark In Clinical MDx
    GNMK Today, 10:43 AM Stephen Simpson, CFA Comment!

    Summary

    • GenMark's existing system and assays have outdone Street expectations for the last three quarters.
    • The launch targets for the new ePlex system have slipped about four months, but this is still shaping up as a very competitive multiplex MDx system.
    • Multiplex MDx testing can deliver meaningful improvements in lab efficiency and patient care and the potential for $400 million in revenue within 10 years of launch supports a $17.50 target.
  • InsiderInsights.com Daily Round Up 8/26/14: Aeropostale, AirT, SWK Holdings, Ironclad Performance Wear
    AIRT, BIOA, CBSH Today, 10:34 AM InsiderInsights Comment!

    Summary

    • Tables of the top insider purchases and sales filed with the SEC on 8/26/14, based on dollar value.
    • Dollar values often do not equate with significance when it comes to insider trades.
    • Proprietary Insider Company Ratings are further given for selected companies.
  • 22nd Century Group: A Lot Of Smoke, Not Enough Fire
    Editors' Pick XXII Today, 10:15 AM The GeoTeam 13 Comments

    Summary

    • A number of factors lead us to the conclusion that 22nd Century Group is severely overvalued and likely worth no more than $0.20 per share.
    • In the past, the SEC charged XXII CEO Joseph Pandolfino, Jr. for stock manipulation of two stocks.
    • Insiders have enjoyed exorbitant wealth at the expense of shareholders.
    • This company is no stranger to massive dilution, and we believe more is on the way.
    • Project abandonment, failed repackaged ventures, absence of sales and advertising, fluff press releases and a huge accumulated deficit translate into a bleak future for XXII.
  • More Than 5 Major Weaknesses In MobileIron Prevent It From Being A BlackBerry Killer
    BBRY Today, 10:03 AM Transcend Asset 47 Comments

    Summary

    • Deutsche Bank's Karl Keirstead is basing his analysis on outdated information on BlackBerry. All 3 issues he mentioned are no longer valid.
    • MobileIron has many competitors and all of them will be supporting iOS 8. BlackBerry included.
    • If BlackBerry's devices (Passport, Z3, Classic) sell, EZ-Pass (which does not expire until January 31, 2015) may get extended indefinitely as a loss leader.
    • When BES12 launches this November, the upgrade and technical support is free. BES10 support is free till January 31, 2015.
    • There is no incentive to start paying MobileIron or any other MDM just because Apple comes out with iOS8. BlackBerry is giving away their service and it is multi-platform.
  • Update: Horsehead Raises $50 Million For Potential Acquisitions - Book Partial Profits
    ZINC Today, 9:42 AM Andy Batts 3 Comments

    Summary

    • Horsehead has raised $50 million through two debt offerings, and earmarked the capital for possible acquisitions.
    • In my original article, I said that Horsehead, a producer and seller of zinc and nickel-based products, could give you excellent returns in a relatively short span of time.
    • Although I'm still bullish on the stock in the long run, I believe that it's time to book at least half of your profits following the debt offerings.
  • Autohome - Great Track Record Missing Institutional Support
    ATHM Today, 9:40 AM Brian Dightman 2 Comments

    Summary

    • Autohome continues to deliver solid growth & six years of profitability.
    • The company holds a leading position in a big & trending market.
    • Early results suggest current initiatives may represent long-term potential.
  • How Would Selling Its Appliance Unit To Electrolux Impact General Electric?
    GE Today, 9:36 AM Options Calling 6 Comments

    Summary

    • GE’s appliances division has remained profitable and has contributed around 8-9% of its total Industrial segment revenues.
    • GE's plans to sell its appliance unit arm to Electrolux will have a massive impact on GE's future strategy.
    • During the year 2013, this division reported sales of $8 billion and a profit of $381 million.
  • Will Nike Continue Outperforming Rivals?
    NKE Today, 9:06 AM Anup Singh Comment!

    Summary

    • Nike has emerged stronger after the FIFA World Cup in an emerging market such as Brazil and expects the positive sales momentum to continue.
    • Nike's product innovation and diversification should lead to strong performances going forward.
    • Nike's stronger balance sheet and huge cash position should allow it to overcome the challenge of Under Armour and Adidas.
  • Royal Imtech: Today's Events Make This Stock A Perfect Short Candidate
    IMTEF Today, 9:04 AM Pim Keulen Comment!

    Summary

    • Imtech reported worse than expected second quarter earnings today.
    • Along with its earnings report, Imtech announced the sale of its ICT division.
    • Imtech will issue equity rights up to €600 million ($792 million) as well.
    • Poor earnings, a disappointing sale of the ICT division and extreme diluting make Imtech a perfect short candidate.
  • Seventy Seven Energy: Making Progress Towards Value
    SSE Today, 8:47 AM Stone Fox Capital 1 Comment

    Summary

    • Recent oilfield services spin-off from Chesapeake hasn't performed well.
    • High reliance on former parent is a quickly subsiding concern.
    • Back recent analyst recommendation of at least 50% upside potential.
  • Electronic Arts: Going Digital, Going For 30% Margins?
    EA Today, 8:47 AM AtonRa Partners Comment!

    Summary

    • EA’s recently-announced Access initiative will increase the amount of recurring revenues and the weight of digital revenues within the revenue mix.
    • Margins will obviously benefit from this model transition. Ultimately, EA could reach a margin close to 30% (vs. 21.5% expected in FY15), in line with that of Activision.
    • The valuation remains a key Buy argument: it's not specifically demanding in view of expected EPS growth and, importantly, does not factor at all a bull case scenario (40% upside).
  • Robert Half International: A Bet On The Permanent Temporary Worker And Continued Regulation
    RHI Today, 8:44 AM Heather Williams Comment!

    Summary

    • Some believe labor markets may have a permanent demand for temporary labor.
    • US employers continue to struggle to find workers leading to demand for temporary workers and/or permanent placement services.
    • RHI's niche in the temporary labor market leads to higher margins.
    • Protiviti, operating in profitable and growing consultancy areas, can utilize RHI's temporary services to further growth.
  • Salesforce.com Has High Growth Potential: Initiating A $58 Price Target
    CRM Today, 8:43 AM Alex Cho 8 Comments

    Summary

    • Salesforce1 offering may drive significant sales growth going forward.
    • Acquisitions, growth in core business, and global expansion drives the high valuation.
    • I'm initiating a $58.09 price target on the company (extremely conservative).
  • Citigroup Offering Potential Gains For The Bold
    C Today, 8:36 AM Josh Arnold 7 Comments

    Summary

    • Shares of Citi have been held down by sentiment and disbelief that the company can execute.
    • Earnings estimates are too low, offering tremendous upside potential.
    • Shares will trade over book value after interest rates begin to rise and fundamentals further improve.
  • Dealertrack Is On A Good Track
    TRAK Today, 8:29 AM Darspal S Mann Comment!

    Summary

    • A good business model overshadowed by concerns over potential weakness in auto sales due to rising interest rates.
    • Integrating recent acquisitions and new products may push growth, margin and cash flows higher.
    • Stock can gain more than 30-40% from improving earnings, cash flows and valuation re-rating.
  • Gilead Sciences: Due For More Short Squeezing?
    GILD Today, 8:25 AM Jason Russ 15 Comments

    Summary

    • Gilead stock had nearly 10% of the net short shares covered in the first half of August.
    • Considering the price and volume action since then, it seems likely that more covering took place since August 15th.
    • In my opinion, we will see even more short covering in the near future.
  • Potbelly Still Way Too Expensive
    PBPB Today, 8:24 AM Josh Arnold 5 Comments

    Summary

    • Shares of Potbelly have fallen by about two-thirds since going public.
    • Terrible execution has led to missed earnings estimates and disappointing guidance.
    • Estimates are still far too high for this struggling chain, and there is a lot of downside risk from here.
  • Harte Hanks: Repositioning For Significant Upside
    HHS Today, 8:24 AM Alpha Gen Capital Comment!

    Summary

    • The company recently shed its legacy printing businesses, mostly Pennysavers, while investing heavily in new digital areas of marketing and big data analytics.
    • The new CEO has implemented a five-year plan bent on re-positioning the company with stronger growth. We expect him to start an M&A campaign that will significantly growth the company.
    • The firm's Trillium software is a strong, complementary asset stream that is likely to boost operating margins.
  • Quebecor Has A Big Decision To Make In Wireless
    QBCRF Today, 8:22 AM Stephen Simpson, CFA Comment!

    Summary

    • Quebecor is seeing better margins at Videotron and the introduction of the iPhone is leading to higher ARPU.
    • Management has a big decision to make with respect to its wireless plans; the Canadian government is facilitating the creation of a fourth national carrier, but management wants partners.
    • Quebecor still looks undervalued on the basis of low revenue growth and modest margin improvements, but the scale of the company's wireless ambitions is a major unknown right now.
  • Investors Should Be Wary Of Write-Downs In The Offshore Drilling Sector
    ESV Today, 7:56 AM Rupert Hargreaves 6 Comments

    Summary

    • The offshore drilling industry is going through a turbulent time.
    • Ensco has started to write-down the value of its drilling units.
    • Further write-downs could follow.
  • GNC Holdings Looking To Go Much Higher
    GNC Today, 7:51 AM Josh Arnold 1 Comment

    Summary

    • GNC's earnings expectations are far too low.
    • The repurchase program alone could be enough for GNC to hit 10%+ annual earnings growth.
    • A huge recent insider purchase provides additional validity to the long case.
  • SodaStream's Strategy For The U.S. Market Will Halt The Decline In Revenues
    SODA Today, 7:45 AM IAEResearch 7 Comments

    Summary

    • The U.S. market is one of the largest segments for the company, and declining revenues from this segment have impacted the stock price heavily.
    • The new marketing strategy focusing on health benefits should allow the company to halt the decline in revenues from the U.S.
    • European markets are growing at an impressive rate, and opportunities in the Asian markets will ensure the long-term growth of the company.
  • Does SeaWorld Have A Debt Problem?
    SEAS Today, 7:36 AM Josh Arnold Comment!

    Summary

    • SeaWorld operates with a lot of debt, nearly as much as its market cap.
    • However, most of the debt is in a low-interest credit facility that doesn't mature until 2020.
    • Given SeaWorld's earnings capability, I don't see any problem with its debt load.
  • Is Ballard Power Systems A Solid Long-Term Investment?
    BLDP Today, 7:12 AM IAEResearch 5 Comments

    Summary

    • Despite some volatility, the year-to-date gains of 156% are extremely impressive for the stock.
    • Growing demand for clean renewable energy indicates the fuel cell manufacturers will continue to grow.
    • Ballard Power Systems can benefit from the massive potential in Africa if its experiment in the region is successful.
    • Stationary power solutions are expected to show CAGR of over 51% over the next 8 years, making it one of the most attractive segments.
  • Mandalay Digital Group: An Overhyped Master Of Positive Spin
    MNDL Today, 7:00 AM The Street Sweeper 13 Comments

    Summary

    • Mandalay has yet to provide any major details about a celebrated deal that sparked its powerful rally, allowing the hype to build - and its shares to soar - instead.
    • Big sellers have gladly unloaded millions of shares of Mandalay stock since the company announced that mysterious deal.
    • With its stock rocketing to a multi-year high, Mandalay seems very tempted to carry out another dilutive secondary offering, after raising a fresh pile of cash earlier this year.
  • Cinemark: Still The Best Bet In Movie Theatres?
    CNK Today, 6:58 AM Marshall Hargrave 1 Comment

    Summary

    • This theater operator is now cheaper than it was when we first covered it last year.
    • But the growth story is still intact, with plenty of opportunities in Latin America.
    • It also offers one of the best dividends in the entertainment space.
  • Cramer's Mad Money - 5 Retailers That Might (Or Might Not) Recover (8/26/14)
    DSW, SHLD, ANN Today, 6:58 AM SA Editor Miriam Metzinger 1 Comment
  • Ebix's Share Buy-Back Program: An Updated Fair Value Estimate
    EBIX Today, 6:54 AM Investing Doc 7 Comments

    Summary

    • Ebix authorized an $80 million share buy-back program on Monday, sending shares on a 5+% rally.
    • The company will utilize its newly acquired $150 million credit revolver to finance the majority of the buyback, which has a moderate negative impact on FVE.
    • Assuming only a portion of shares are repurchased at moderate premium to today's prices, I arrive at a new FVE of about $25.50-26.
  • Update: Ironclad Performance Wear Q2 Earnings & Private Placement With Insiders
    ICPW Today, 6:48 AM Benjamin Padnos 2 Comments

    Summary

    • Shares of Ironclad Performance Wear have shot up 50% since coverage on June 4, 2014.
    • On August 6, the Company announced revenues of $4.8 million in its fiscal 2014 second quarter, up 6.6% from the same period last year.
    • On August 25, Ironclad announced it had completed a private placement of common stock to certain officers and directors totaling approximately $610,000.
    • Reiterating price target of $.50 to $.75 in 2015.
  • Bakken Update: Diamondback Has 28% Upside
    Editors' Pick FANG Today, 6:09 AM Michael Filloon 5 Comments

    Summary

    • FANG still has significant downspacing to perform with 11 possible intervals to target horizontally.
    • Production is growing fast, bolstered by acquisitions and improved well design.
    • Its acreage is well-suited to pad production, as this area could have some of the tightest spacing in the country.
    • The recent pullback in realized oil prices could be an issue, as expectations are for an inventory build at Cushing.
    • FANG continues to be a top operator in the Midland Basin with very good production rates.