Seeking Alpha
  • HCP: Decidedly More Affordable After CEO Got Fired
    HCN Today, 5:24 AM Bram de Haas Comment!

    Summary

    • HCP pulled back after CEO change and lags the VNQ by 10% over just a few months.
    • Pullback likely overdone as Martin looks to be a capable CEO and the company's culture is intact.
    • HCP has not been this affordable on a EV/CFO basis in a long time, indicating an opportunity.
    • The company boosts a fine RoE record and is in a defensive (non-cyclical) sector.
  • Contrarian Stock Picks For Second Half Rebounds
    PBPB, HERO Today, 5:21 AM Dan Strack Comment!

    Summary

    • Finding a stock at 52 week lows with heavy insider trading, backed by a strong revenue backlog is like winning the lottery for contrarian investors.
    • Identifying the right companies that have fallen from grace on Wall Street can result in significant price appreciation on a turnaround.
    • Buy when there is blood in the streets.
  • Ocwen Financial: Wells Fargo Deal Resolution Will Mean Significant Upside
    PRO Top Idea OCN Today, 5:00 AM Alpha Gen Capital Comment!

    Summary

    • Hold on MSR deal has irrationally suppressed the share price despite continued strong organic growth.
    • Surge in home prices over the last two years could potentially create another flood of foreclosures.
    • Home price increases have created large gains on the held portfolio which could be liquidated for large gains.
    • OASIS securitization program lowers cost of capital adding to competitive advantage.
    • Use of burgeoning free cash flow likely to propel share buyback program.
  • Whole Food Markets: Going Organic
    WFM Today, 3:53 AM Palathingal Frank Comment!

    Summary

    • WFM is at valuations that reflect a growing company with some near term challenges.
    • Debt levels in WFM are astonishingly low.
    • Growth opportunities for WFM are plentiful, given the brand recognition and customer loyalty.
  • Starbucks: A Star Buy
    SBUX Today, 3:30 AM Vladislav Deshkovich 2 Comments

    Summary

    • Starbucks is opening stores at a rapid pace in the United States and abroad.
    • Coffee demand is increasing.
    • Starbucks has strong fundamentals and excellent public relations strategies.
  • Pixelworks Surges On Apple TV Rumors
    PXLW Today, 3:08 AM Bidness Etc 1 Comment
  • The U.S. Steel Industry - Are Companies Beating Or Meeting Expectations?
    X, AKS, NUE Today, 3:01 AM Bidness Etc Comment!
  • Micron And DRAM Cost
    MU Today, 2:52 AM Jaret Wilson 6 Comments

    Summary

    • The strong Korean won and weak yen and dollar have lead to improved relative cost for Micron.
    • DRAM is a low cost part, making it an attractive technology to adapt for new products.
    • Going forward, Micron will continue to surprise with high profits from low costs during a time of soaring prices.
  • Costco Is Another Great Addition To Your Portfolio
    COST Today, 2:43 AM Balanced Investing Comment!

    Summary

    • Costco managed to deliver a rising EPS figure during its last quarter despite certain rising costs. The top line remained a major contributor to the EPS.
    • Growing member base and renewal rates mean that the top line should continue growing. The store expansion plan complements these growing measures.
    • If costs remain controlled, these factors should help Costco deliver returns to its shareholders.
  • Is Tiffany & Co A Buy At $100?
    TIF Today, 2:33 AM Lavish Investor 1 Comment

    Summary

    • Tiffany & Co's reputation and prestige help it as a company.
    • Luxury goods likely to continue growth in the economic recovery.
    • Growth potential in Tiffany, but other areas may be better.
  • Wal-Mart: Bringing Growth To The Business
    WMT Today, 2:14 AM Alpha Strategist Comment!

    Summary

    • It’s high time for Wal-Mart to increase its penetration in e-commerce in the emerging economies of the Asia Pacific region.
    • Wal-Mart’s investment in the B2B e-commerce marketplace is a good step forward that is expected to further help its penetration.
    • China is another exploding market where Wal-Mart is increasing its presence through strategies such as acquisitions.
  • Taking The Starbucks Experience One Step Further
    SBUX Today, 1:58 AM Alpha Strategist Comment!

    Summary

    • Starbucks has always proven itself to be a proactive early tech adopter that keeps coming up with services that not only provide convenience but also gets its visitors interested.
    • Starbucks has come up with a wireless charging facility at its outlets offering technology that is yet to be adopted by masses.
    • Starbucks’ strategy of staying ahead of the adoption curve is paying off and the company is expected to deliver good financial results.
  • Macy's: A Value Stock
    M Today, 1:47 AM Balanced Investing Comment!

    Summary

    • Despite tough economic conditions, Macy's continues to register positive growth in comparable sales.
    • It continues to extend its retail network by opening new stores. The completion of store fulfillment is expected in 2014 where approximately 650 full-line Macy’s stores will hold shipping capability.
    • Debt refinancing is estimated to elevate the company’s bottom line by $7.92 million on an annual basis.
    • The share repurchase program has been topped up to $2.5 billion.
    • In the light of core business strategies and cost cutting techniques implemented by Macy’s, it has a healthy future outlook.
  • Occidental Petroleum - Permian Basin Can Reap Returns
    OXY Today, 1:32 AM Alpha Strategist Comment!

    Summary

    • With the spinning-off of the California business, Occidental Petroleum can focus more on its lucrative assets in the Permian Basin.
    • To capitalize on the growth potential of the Permian Basin, the company has allocated 22% of its 2014 capital budget towards improving productivity in the region.
    • With the allocated capital spending, the Permian Basin is set to deliver production growth of 13-16%.
    • The company has achieved a reserve replacement ratio of 169%, indicating long-term production growth.
  • Apple: The Party Is Over; Initiating With A Bearish View
    AAPL Today, 1:20 AM WestEnd511 39 Comments

    Summary

    • I am initiating on AAPL with a bearish view with a $102 DCF-target price implying the shares are fairly valued.
    • Flattening innovation curve, ecosystem contracting via all geographic regions and margin pressure from new product cycle to weigh in on the stock.
    • China and India will not offer the next growth as emerging market smartphone makers are ramping up export to bring the competition to the US.
  • Facebook: $90 Price Target Is Possible With App Links And LiveRail
    FB Today, 1:02 AM Alcaraz Research 2 Comments

    Summary

    • UBS reiterated its $90 Price Target for Facebook. UBS projects Instagram and Premium Video Ads will each deliver $1 billion sales by 2017 or 2018.
    • App Links is a strong catalyst for Facebook’s mobile-centric focus.
    • App Links will weaken Google’s browser-based mobile search advertising.
  • Intel: The Next Few Weeks Are Key
    INTC Today, 12:32 AM Bill Maurer 5 Comments

    Summary

    • The next few weeks should tell us a lot about Intel.
    • The company's forecast raise has sent estimates skyrocketing.
    • More detail will be given on the 2014 forecast.
    • Is a dividend raise coming? How about a buyback announcement?
  • IPO Preview: Medical Transcription Billing
    MTBC Today, 12:31 AM IPOdesktop Comment!

    Summary

    • MTBC is a roll-up of money losing companies in the healthcare revenue cycle management business.
    • The growth strategy is to acquire more companies in the business, but MTBC is too small to be able to acquire larger healthier companies.
    • Also, the underwriters don't have a particularly good track record.
  • Adeptus Health IPO Quiet Period Offers An Adaptable Buying Opportunity
    ADPT Today, 12:17 AM Don Dion Comment!

    Summary

    • The SEC-enforced 25 day quiet period on ADPT will come to an end on July 19th, allowing the firm's IPO underwriters to publish analyses on July 20th.
    • Evidence supports a rise in share price at the quiet period expiration, particularly for a firm with strong underwriters like ADPT.
    • We note a short-term buying opportunity at this event time.
  • Bank Of America And JPMorgan Fire Thousands Of Employees But Raise CEOs' Salaries
    BAC, JPM Yesterday, 11:17 PM Don Dion 20 Comments

    Summary

    • Mega banks, including Bank of America and JPMorgan, have tried to cut costs by closing down bank branches and laying off thousands and thousands of hard-working employees.
    • This loss of people-power often makes banks less efficient and over-tasks remaining employees.
    • Both BAC and JPM have shown declining performance YTD, while their CEOs' compensation and benefits, including private jets have been very rich, showing a disconnect among priorities for shareholders.
    • We reiterate our stance that investors should consider taking profits in BAC and JPM and consider Wells Fargo and Heritage Insurance in the second half of 2014.
  • Liquidate Lumber Liquidators Before It Liquidates Your Portfolio
    LL Yesterday, 10:50 PM Michael Blair 1 Comment

    Summary

    • Major earnings miss.
    • Same store sales declining sharply.
    • No floor on the stock.
  • An Undiscovered Brand With Improving Margins And Strong Growth
    Editors' Pick MSLP Yesterday, 7:49 PM Paulo Santos 10 Comments

    Summary

    • MusclePharm has successfully built customer-facing brands.
    • In doing so, it has entered into a massive growth trajectory, which recently turned profitable.
    • Still, the stock doesn't yet trade at growth multiples, given a checkered past.
    • I'd expect there to be at least 50-100% upside on a growth re-rating or acquisition interest alone. And possibly much more if the growth trajectory stays intact.
  • Why Evolution Petroleum Corporation Is Not Currently In My Investment Portfolio
    EPM Yesterday, 7:33 PM Value Digger 4 Comments

    Summary

    • Evolution Petroleum Corporation is engaged in a low risk and slow growth business.
    • The company's stock has enjoyed a nice gain over the last two years, but it has corrected somewhat lately.
    • Further downside from the current levels is not out of the question.
  • Transocean: Regulations Hampering A Good Investment
    RIG Yesterday, 7:12 PM Alpha Strategist 1 Comment

    Summary

    • Improved revenue efficiency rate and cost-cutting initiatives have helped Transocean beat analysts' estimates regarding its revenue and earnings in the first quarter of FY 2014.
    • The company may be facing trouble as the 20-year tax holiday for North Sea drillers is going to expire.
    • Transocean, along with other offshore drillers, is facing changes in regulations, which are still not favorable for drillers.
  • Is The Clayton Act The Quickest Way To Puncture Herbalife's Pyramid Scheme?
    HLF Yesterday, 5:59 PM Matt Stewart 51 Comments

    Summary

    • The FTC regulates pyramid schemes.
    • The FTC also regulates anti-trust violations.
    • Does the pursuit of an anti-trust case puncture the pyramid scheme too?
  • Magna's Earnings Seem To Be Picking Up Speed
    MGA Yesterday, 5:57 PM Alpha Now at Thomson Reuters Comment!

    Summary

    • We may have stumbled upon a theme. We have found the StarMine Alpha Models flashing mostly bullish signals, including the one for earnings quality.
    • We began screening for companies in North America that also receive top marks from the StarMine Earnings Quality model.
    • We took a drive by the Canadian auto components manufacturer, Magna International Inc.
  • Zillow Shares May Be No Place To Rest Your Head
    Z Yesterday, 5:30 PM Alpha Now at Thomson Reuters 6 Comments

    Summary

    • When is a great company not a great stock to own? Naturally, you always want to own companies with great management, growth at the company and industry level, etc.
    • However, there comes a point where the company’s prospects – however great they may be – are far exceeded by the expectations of stockholders.
    • If real estate’s mantra is “location, location, location,” then should Zillow Inc.’s be “overvalued, overvalued, overvalued?”.
  • Insiders Are Buying Shares Of These 4 Stocks Under 10 Dollars
    CMLS, LIOX, REN Yesterday, 5:21 PM Kapitall 1 Comment

    Summary

    • Insider buying is a carefully watched metric for investing in small-cap stocks.
    • Insider buying in medium- to large-cap companies doesn't tell you as much as for small-cap companies.
    • In small companies, employees have a better picture of possible stock performance.
  • Medallion Financial And The Threat Of Uber
    TAXI Yesterday, 5:14 PM Vladislav Deshkovich 10 Comments

    Summary

    • Medallion Financial deals almost exclusively in the marker for NYC taxi medallions.
    • Taxi medallions failed to appreciate for the first time in 10 years recently.
    • Uber is five years old and is worth over $18 billion.
  • Lake Shore Gold Has Further Room To Run
    LSG Yesterday, 5:12 PM Hard Asset Investments Comment!

    Summary

    • Lake Shore Gold has popped higher following a report of record production in the second quarter of 2014.
    • The company produced 52,300 ounces of gold for the quarter, which is a 70% increase year-over-year.
    • Lake Shore Gold is growing low-cost production, repaying its debt and building up cash. and has further room to run.
  • Spectrum Pharmaceuticals: Key Drug Fusilev May Face Generic Competition Soon
    SPPI Yesterday, 4:31 PM The Visible Hand 18 Comments

    Summary

    • Fusilev's patent protection is much weaker than we or the market previously understood.
    • We have counted at least five obvious prior arts, each of which is sufficient to invalidate the '829 patent.
    • There is a high probability that generic competition for Fusilev could enter the market as early as March 2015.
    • In that scenario, we believe the downside on SPPI's stock price would be extreme.
  • Gigamon's Weak Guidance: An Opportunity To Scoop Up Cheap Shares
    GIMO Yesterday, 4:31 PM D. Mero 2 Comments

    Summary

    • Gigamon announced weak preliminary Q2 results with a 17% drop in forecasted revenues. This caused a 30% drop in price.
    • Management has over-promised and under-delivered, causing investors to lose confidence in the company and its leadership. This could make for a cheap M&A target for competitors.
    • Going forward, top line will grow at a slower pace than in the past. At a P/S ratio of 2.7x, market is pricing as if all growth is gone.
  • Why Sinclair Broadcasting Group Is Still Undervalued
    SBGI Yesterday, 4:28 PM Gary Bourgeault 1 Comment

    Summary

    • Sinclair's acquisitions and growth not being rewarded by the market.
    • Concerns over digital distribution disruptions are over-stated in the short term, as it will be several years before that takes effect, if it ever does.
    • The heavy debt load and debt-to-equity continues to drag on the company, even though its free cash flow easily handles it.
  • Market Rarity: Great Company At Very Good Price
    ESRX Yesterday, 4:20 PM YCharts 2 Comments

    Summary

    • Express Scripts has a rock-solid demographic tailwind -- aging Baby Boomers -- in addition to an expected pick-up in prescription demand as more Americans gain coverage through the roll out of the ACA.
    • The short-term problem is that Express Scripts' integration of its mega $29 billion acquisition of Medco in 2012 has been slower than anticipated.
    • For the patient investor, the current clouds sure look like opportunity.
  • NQ Mobile: Jumping To Conclusions, The Muddy Waters Board Game
    NQ Yesterday, 4:20 PM Trade Star 35 Comments

    Summary

    • Muddy Waters jumped to conclusions and missed, yet again.
    • Ms. Ying Han resigned as Audit Chair for both WuXi PharmaTech and NQ Mobile for validated personal reasons. There were no disagreements between her and NQ Mobile.
    • It's highly unlikely insider shares as described by Muddy Waters were sold between 6/25/14 and 7/3/14.
  • Earnings Season Preview: What To Expect From The Banks
    C, GS, JPM Yesterday, 4:12 PM Leigh Drogen Comment!

    Summary

    • Earnings expectations are more optimistic than they've been since the 4th quarter of 2011 and the stock market is near all time highs.
    • While most sectors are slated for strong performances, the financials are an exception to the rule.
    • Contributing analysts on the Estimize.com platform are expecting the financials to report weaker earnings compared to FQ2 of last year, but still manage to edge past the deflated estimates set by Wall Street.
  • Yahoo: Is There Life Beyond The Alibaba IPO?
    YHOO Yesterday, 4:09 PM Options Calling 8 Comments

    Summary

    • Yahoo's initial investment of $1 billion in equity of Alibaba in 2005 will soon IPO for over $100 billion.
    • As of March 2014, Yahoo had roughly 10.3% of the search-engine market share.
    • How can Yahoo leverage the success of Alibaba and continue to produce or acquire assets that will increase shareholder value?
  • Big Beer: How Does SABMiller Stack Up?
    SBMRY Yesterday, 4:05 PM Charles Lewis Sizemore, CFA Comment!
  • Verizon: One Of The Best Picks In The Sector
    VZ Yesterday, 4:01 PM Trading Champ 3 Comments

    Summary

    • Verizon Communications reported solid growth in the recent quarter.
    • Verizon’s wireless network and the recent buyout of Vodafone will deliver value to shareholders over time.
    • Verizon’s cost-cutting initiatives will improve the company’s bottom line in the coming years.
    • The company has a strong dividend yield.
  • Is This The Best Time To Buy GT Advanced Technologies?
    GTAT Yesterday, 3:54 PM IAEResearch 31 Comments

    Summary

    • The recent downgrades focus on the short-term, and the fall in the stock price offers a good opportunity to long-term investors.
    • It is important to understand the role of the photovoltaic segment for the future growth of the company in order to gauge the true potential of the stock.
    • Prospects are bright for the photovoltaic segment with the expected success of Hyperion and Merlin.
  • Amazon's Dispute With Hachette Group Will Have Negligible Impact On Its Business
    AMZN Yesterday, 3:49 PM Trefis 8 Comments

    Summary

    • Amazon recently made a clever move to garner authors' sympathy in order to protect its control over the e-books business. It proposed to Hachette Book Group that the book authors can keep 100% of the revenues generated from e-book sales while the two companies reach a common ground as they re-negotiate their expired e-book contract.
    • Hachette Book Group has rejected the proposal.
    • In case of any fall out, Amazon will come out with an upper hand as Hachette’s e-books constitute a very small portion of its overall business.
  • Conduril: Halftime Update On My Highest-Conviction Pick For 2014
    CNDUF Yesterday, 3:46 PM Alpha Vulture 2 Comments

    Summary

    • Still my highest-conviction pick, after a 85% gain YTD.
    • Compelling valuation both on absolute and relative basis.
    • Positive outlook, thanks to filled order book and exposure to African growth markets. Recovery in Portugal free option.
  • Has Johnson & Johnson Finally Met Its Match?
    JNJ Yesterday, 3:46 PM Team Money Research 6 Comments

    Summary

    • In the latest instalment of our Head-To-Head series, we pitch two companies from the health care sector, Johnson & Johnson and Covidien, against one another.
    • The article focuses on the relative strengths and weaknesses of Johnson & Johnson and Covidien based on business performance and sustainability/dividends.
    • It concludes by discussing the current valuations of the two companies, and answers whether Johnson & Johnson represents good relative value at current price levels.
  • Helion Network Offering To Boost Hewlett-Packard's Revenues
    HPQ Yesterday, 3:43 PM Trefis Comment!

    Summary

    • As Hewlett-Packard (HPQ) continues to transform its business, its stress on cloud computing is on the rise.
    • Recently, the company has also announced the launch of HP Helion Network, a global open network designed to provide customers with an unparalleled portfolio of services and the ability to create a secure hybrid IT environment that addresses local and global requirements.
    • HP Helion incorporates existing HP cloud offerings, new OpenStack technology–based products, and professional and support services under a unified portfolio.
    • In this article, we will explore this product and how it can boost HP’s revenues.
  • Mid-Year Report Part 2: Not All Stocks Overpriced
    ESRX, WFC, MA Yesterday, 3:40 PM YCharts 1 Comment

    Summary

    • Stocks are looking pricier.
    • It’s worth asking very broadly: what’s still cheap?
    • Using the YCharts Stock Screener, we found a list of sub-15 forward P/E ratio stocks that includes a fair number of financial stocks, energy stocks, tech stocks and healthcare stocks.
  • AeroVironment - Future Growth At A Price As The Company Is In Transition
    AVAV Yesterday, 3:32 PM The Value Investor 2 Comments

    Summary

    • AeroVironment has posted strong results, issues a solid outlook.
    • Lower military sales is offset by an interest of the usage of unmanned vehicles for commercial activities.
    • The company is in a transition phase, therefore the current valuation relies on future growth and might factor in an acquisition premium.
  • The VirnetX Tinderbox
    VHC Yesterday, 3:29 PM Perdix 20 Comments

    Summary

    • All eyes are on the CAFC in anticipation of the VirnetX v. Cisco (VHC v CSCO) appeal decision. There have been many events that have led to the suspense:.
    • The decision will be heavily influential on VirnetX valuation. An affirmation of the jury verdict and enhanced damages could lead VirnetX to collect billions in royalties from Apple (AAPL) alone;.
    • Careful analysis of damages jurisprudence, and the citation by the CAFC of the Apple/Motorola case, indicates that the jury award and enhanced damages are in danger of being overturned;.
    • Judge Rader's sudden retirement from the CAFC as of June 30th has added questions as to the timing of the decision; and.
    • Because of the heavy downside, VirnetX is the most shorted stock in the world. An affirmation of a significant ongoing royalty could create a temporary run up on the stock.
  • Flamel Technologies: Bloxiverz Competition To Cease Marketing
    FLML Yesterday, 3:24 PM Ronny Hyman Comment!

    Summary

    • BLOXIVERZ (neostigmine methylsulfate) shortage resolved.
    • The FDA removes unapproved products.
    • The FDA approves VAZCULEP in a surprise early move.
  • Zacks' Bear Of The Day: Chesapeake Granite Wash Trust
    CHKR Yesterday, 3:10 PM Zacks Investment Research 1 Comment
  • Xunlei Limited's IPO Quiet Period Expiration Opens Buying Opportunity
    XNET Yesterday, 3:04 PM Don Dion 1 Comment

    Summary

    • July 18 marks the end of the SEC-enforced 25 day quiet period on underwriter research for XNET; July 19th is the first day underwriters can release reports.
    • These detailed research reports will likely be positive and cause a short-term price increase in XNET in the days preceding and following the quiet period expiration date.
    • Although XNET has not performed with consistent strength, its IPO was positive, suggesting investor confidence and excitement in Chinese tech firms.
    • XNET’s reputable underwriters, including J.P. Morgan and Citigroup, will likely help boost the price of XNET shares at this time.