Seeking Alpha
  • Knightsbridge Shipping, Ltd. - A Compelling Arbitrage And Share Repurchase Story
    VLCCF Today, 1:49 AM Terence Channon Comment!

    Summary

    • The continued transformation and recent price decline provide a second chance buying opportunity after the early 2014 run-up.
    • The environment is attractive for Knightsbridge to repurchase shares under a critical $10 price point.
    • An immediate arbitrage opportunity exists for investors at today’s price levels.
    • Rarely discussed industry fundamentals provide a potential catalyst for rate increases.
  • Canadian Telcommunications At Cyclical High
    BCE, SJR, TU Today, 1:00 AM Mark Liew Comment!
  • Diamond Out Of The Rough
    Editors' Pick DMND Today, 12:46 AM Value Play Comment!

    Summary

    • DMND has had a tough time with litigation in the past few years. Thanks to good management decisions, it appears to be fully back on track.
    • The joint problems of debt and positive speculation have left DMND as neither a potential buyer nor seller on the M&A scene.
    • Don't be fooled by this seeming value play. There's a lot more to the story, but it's worth your attention.
  • Amarin's Value With Or Without REDUCE-IT And A Final Word On Management
    AMRN Today, 12:30 AM Outsized Analytics 2 Comments

    Summary

    • Blame for Amarin's recent collapse falls squarely on the shoulders of one group.
    • Positive cash flow does not appear achievable without a label expansion.
    • Amarin will most likely need to raise cash before the interim analysis of the REDUCE-IT trial data in 2016.
    • If the company wishes to avoid dilution, there are alternatives.
    • Amarin still possesses the potential to increase significantly above today's share price.
  • IPO Preview: EndoStim
    STIM Today, 12:30 AM IPOdesktop Comment!

    Summary

    • A medical device company focused on the development and commercialization of a novel neurostimulation system for the treatment of severe gastroesophageal reflux disease.
    • 2.4 times book. Small rev, large losses.
    • No stockholder interest in the IPO.
  • Costco A Better Buy Than Wal-Mart, Target
    TGT, WMT, COST Today, 12:12 AM Healthy Appreciation Comment!

    Summary

    • Wal-Mart has the best P/E and safest dividend yield.
    • Costco has the highest profits per store and lowest SG&A costs.
    • Target has the best PEG and gross profit margin.
    • Overall, Costco will give the best return-on-investment going forward.
  • NiSource: Turn Off The Lights And Heat
    NI Today, 12:01 AM Brian Sanders 2 Comments

    Summary

    • The business trades at a moderate premium to expected growth.
    • Relative comparison assumes weak value and prospective income seekers are simply acquiring restricted yield.
    • Debt financing is growing in light of scant cash balances; despite favorable OPMs, bottom line expansion may be modestly encumbered.
    • Technicals remain bullish, although a bearish oscillation is forming on the weekly chart.
  • IBM Has The Chance To Finally Create A Coherent Cloud Revenue Statement
    IBM Yesterday, 11:47 PM Cameron Graham 2 Comments

    Summary

    • IBM is creating a vertical, integrated cloud business unit to better show their focus.
    • Major tech companies have purposefully obscured their cloud revenue on financial disclosures, making it hard to determine market position.
    • Revenue should be broken apart by Infrastructure, Platform, and Software as a Service products.
    • IBM now has the chance to offer the first coherent revenue statement for cloud services.
  • Best U.S. Stock Ideas Today
    YHOO, NXPI, SAP Yesterday, 8:07 PM Aviate 1 Comment
  • Ensco Fleet Age Drops, Jackup Rig Sale Confirmed
    ESV Yesterday, 7:04 PM Doublewide Investing 3 Comments

    Summary

    • Ensco's recent 8K confirms the sale of four older jackups.
    • The fleet is now slightly younger with a stronger high-grade mix.
    • Management is responding to the market, building investor confidence.
  • 3 Oil Blue Chips, With High Dividend Yields, To Accumulate At Discount
    RDS.A, RDS.B, CVX Yesterday, 6:48 PM EST Invest 3 Comments

    Summary

    • 3 large oil companies are trading at historically low P/B multiples - time to go long.
    • OPEC's meeting next month might provide a catalyst for the bulls.
    • Dividend yields as high as 5.6% mitigate downside risks.
  • Update: Corvus Gold Reports Maiden Resource Estimate On The Alaskan Project
    CORVF Yesterday, 6:39 PM The Investment Doctor Comment!

    Summary

    • Corvus Gold announces a 267,000 oz. gold resource estimate in Alaska.
    • This was unexpected, as the company is fully focused on its gold project in Nevada.
    • The investment thesis won't be impacted, as LMS is a non-core asset. However, it would be interesting if the company could find a joint venture partner.
  • Nabors Shows Impressive Growth In Third Quarter
    NBR Yesterday, 6:35 PM Chris Katje Comment!

    Summary

    • Shares ready to break out on strong earnings after falling from highs in the low $30 level.
    • Revenue increased 17%, one of the best quarters in recent history.
    • Backlog for Pace-X rigs remains strong.
  • Portfolio Alternative To McDonald's Coming In Form Of Habit Restaurants IPO
    HABT Yesterday, 6:04 PM Chris Katje 2 Comments

    Summary

    • McDonald's saw same store sales decline 3.3% on declining traffic.
    • The Habit Burger scored the best tasting burger at Consumer Reports.
    • The Habit Burger believes it can hit 2,000 locations in the United States.
    • Company has 42 straight quarters of positive same store sales growth.
  • Orocobre Provides Exposure To Lithium M&A Activity
    OROCF Yesterday, 5:58 PM Livio Filice 3 Comments

    Summary

    • Orocobre moves closer to production in Argentina.
    • Additional M&A in the lithium oligopoly which presents speculation opportunity.
    • Lithium battery and electric vehicle manufacturers want access to lithium supply.
  • Future Potential And A New Buying Opportunity For Alibaba At Quiet Period Expiration
    BABA Yesterday, 5:35 PM Don Dion 2 Comments

    Summary

    • The 40-day quiet period on BABA will come to an end October 29, allowing the firm's IPO underwriters to publish (likely positive) analyses.
    • Recent research shows above-market returns in the (-5, +2) days surrounding a firm's quiet period expiration.
    • BABA got off to a strong start on the market rising nearly 30 percent above its initial price of $68, and we remain optimistic given its very strong underwriters.
    • We see the upcoming quiet period expiration as another great opportunity to buy into this rocket ship company.
  • Trinity's Loss Will Be Greenbrier And American Railcar's Gain
    TRN Yesterday, 4:51 PM Ivan Sack 4 Comments

    Summary

    • Texas court decision is a long-term blow to Trinity Industries.
    • Greenbrier and American Railcar are safer alternatives.
    • Government of Canada will insist on aggressive timelines.
  • Arotech's Growth Is Massively Decelerating, Leading To Reduced Profits And A Likely Default On Its Credit Agreement
    Editors' Pick ARTX Yesterday, 4:17 PM Small Cap Machine 7 Comments

    Summary

    • Q3 growth should decelerate massively, catching investors by surprise. Consensus expects 30% growth but we think growth will be negative. Based on this, growth investors should run for the exit.
    • Profitability for the year should be 25% below Wall Street estimates. This too will likely become apparent in the Q3 report and drive the stock towards $1.15.
    • ARTX will likely be in default of its credit agreement based on the expected EBITDA shortfall. Management will then be beholden to creditors.
    • Another massive equity dilution will be needed to satisfy creditors. We expect shareholders to be diluted by another 55%, after already being diluted 50% year to date.
    • As the company has been issuing stock, management has been selling theirs. Since highlighting this in our initial report the selling continues. So far management has sold $600,000 of stock.
  • A Lot Of Potential Upside Remains In Small-Cap Stocks
    BC, CNO, MDR Yesterday, 4:08 PM Hawkinvest 2 Comments

    Summary

    • While the markets have begun to rebound, many small cap stocks are still well below recent highs.
    • Small cap stocks can continue to rally into the end of the year as fund managers chase for performance.
    • Small cap stocks tend to have less exposure to the rising dollar which also makes this sector attractive.
  • Did Apple Juice This Chip Stock's Earnings? (Podcast)
    UA, SKX, FTNT Yesterday, 4:05 PM Leigh Drogen Comment!

    Summary

    • This week on Estimize Radio I’m joined by Joe Kunkle, a prominent and veteran member of both the StockTwits and Estimize communities.
    • Joe and I preview earnings from Under Armour, Skechers, Fortinet and O’Reilly Automotive.
    • In our featured topic we discuss why NXP Semiconductors is set for a huge quarter thanks to Apple Pay.
  • Why You Should Reconsider For-Profit Online Education Stocks
    APEI, APOL, BPI Yesterday, 4:02 PM Tyler Wagner Comment!

    Summary

    • With rising cost of attendance, traditional college is becoming a less popular and less worthwhile investment for many Americans.
    • Online degree programs run as for-profit companies have emerged as the top alternative form of secondary education.
    • Because of these trends, American Public Education Institution and Bridgeport Education Inc. (two of the biggest players in the industry) both seem poised to rebound in coming moths.
  • Petsmart Inc. Quarterly Stock Valuation
    PETM Yesterday, 3:54 PM Benjamin Clark Comment!

    Summary

    • PETM is suitable for the Enterprising Investor following the ModernGraham approach.
    • According to the ModernGraham valuation model, the company is undervalued at the present time.
    • The market is implying 5.27% earnings growth over the next 7-10 years, within a margin of safety of the company's actual growth in recent years.
  • Update: Torchlight Discloses Disadvantaged Economic Arrangement
    TRCH Yesterday, 3:37 PM Light Of Day Comment!

    Summary

    • Torchlight amended it's 10-k to include information uncovered by Light of Day.
    • Torchlight economics in the Hunton are worse than previously disclosed.
    • Torchlight only owns 1,000 net acres in the core Hunton.
    • Torchlight may be liable for losses by shareholders and recent equity investors.
    • This potential liability could drive Torchlight into Bankruptcy.
  • Ramey Rebuttal: Herbalife Is Going To $0
    HLF Yesterday, 3:34 PM Matt Stewart 38 Comments

    Summary

    • Tim Ramey Published a Research Report on HLF for his new firm Pivotal Research.
    • Ramey Handicaps HLF Downside at $40.
    • Here's the counter-argument.
  • Apple/GT Advanced Technologies Settlement: Ending The Madness
    AAPL, GTAT Yesterday, 3:19 PM Mark Hibben 47 Comments

    Summary

    • Apple and GTAT have announced an “amicable settlement” ending the GTAT supplier agreement.
    • Details of the settlement indicate that GTAT built thousands of sapphire furnaces in anticipation of supplying screens for the iPhone.
    • The construction of the furnaces was mandated by the supplier agreement.
    • GTAT and Apple appear to have miscalculated the cost of building and operating such a huge facility.
  • Best European Stock Ideas Today
    IBM, KO, SAP Yesterday, 3:00 PM Aviate Comment!
  • Is Alibaba Benefiting From Unrealistic Expectations?
    BABA Yesterday, 2:51 PM Alpha Now at Thomson Reuters 4 Comments

    Summary

    • The market has not yet experienced the “roadrunner moment” when it realizes there’s no longer anything holding it up.
    • However, investors have certainly been evaluating their portfolios in the event the market’s twin supportive arches of short memories and cheap money disappear.
    • While the S&P 500 is nowhere near correction territory, far greater damage has been inflicted within the energy sector;
    • Where prices are down 13.7% over the last 30 days (the U.S. market is down 6.9%).
  • The Case Against TravelCenters Of America
    TA Yesterday, 2:19 PM Boring Stock Lover 6 Comments

    Summary

    • Despite more than doubling over the last two years, TravelCenters of America is not an attractive investment.
    • Even with a significant legal victory in 2011, the company continues to struggle to be profitable.
    • High fixed costs, nonexistent free cash flow, and conflicting management incentives make it a stock to avoid.
  • Comparing America's 3 Largest Semiconductor Memory Chips Companies
    CODE, MU, RMBS Yesterday, 2:17 PM Joseph Cafariello Comment!

    Summary

    • The Semiconductor Memory Chips industry is expected to outperform the S&P broader market significantly in the current quarter, next quarter, 2015 and beyond.
    • Mean/high targets for the 3 largest U.S. Semiconductor Memory Chips companies – Micron Technology, Rambus and Spansion - range from 32% to 92% above current prices.
    • Find out which among Micron, Rambus and Spansion offers the best stock performance and investment value.
  • The One Lingering Concern From Apple's Earnings
    AAPL Yesterday, 2:16 PM Bob Ciura 95 Comments

    Summary

    • Apple's results easily beat estimates and the stock rallied after earnings.
    • Underneath the surface, however, there is a widening disparity between Apple's core products.
    • The iPad's continuing decline is a real cause for concern, which makes Apple's new partnerships critical to its performance in tablets.
  • 2 Retail Ideas For The Holiday Season
    BURL, FL, XRT Yesterday, 2:14 PM Matthew D. McCall Comment!

    Summary

    • Holiday sales set to grow above 4% for first time since 2011.
    • Footwear and active apparel retailer set to flourish.
    • Off-price retailers should attract consumers looking for bargains.
  • Can Apple Save IBM From Itself?
    IBM Yesterday, 2:10 PM Douglas Ehrman 27 Comments

    Summary

    • IBM recently announced disappointing results.
    • As part of the announcement, "Roadmap 2015" will be abandoned.
    • There remain sufficient positives to begin building a position in the stock.
  • Cellphone Sales Tumble, As Mobile Ads Zoom
    BIDU, SINA, SSNLF Yesterday, 1:58 PM Doug Young 7 Comments
  • Las Vegas Sands: Appears To Be A Long-Term Buy
    LVS Yesterday, 1:48 PM Investing Tricks 4 Comments

    Summary

    • Macau accounts for 65% of Las Vegas Sands’ revenues and the weakening gambling industry in the region is an issue of concern for the company.
    • Macau’s gross gaming revenues declined 11.7% YoY in September due to a 25% YoY decline in VIP volume.
    • The company returned a total value of $701 million during the recently-ended quarter with approximately $401 million attributed to cash dividends and about $300 million attributed to share buybacks.
  • Update: Canadian National Railway Reports Strong Q3 Earnings
    CNI Yesterday, 1:47 PM Ben Kramer-Miller 1 Comment

    Summary

    • Canadian National grew earnings per share by 21% and revenue by 16%.
    • This exceeds my expectations.
    • While shares look expensive, given the current growth rate they remain compelling, although it is always prudent to wait for a pullback.
  • Mr. Market Is Offering Corning At A Low, Low Price
    GLW Yesterday, 1:38 PM Mitchell Mauer 3 Comments

    Summary

    • Benjamin Graham's "Mr. Market" is irrationally under valuing Corning stock.
    • Corning's low P/B ratio and high free cash flow yield make a strong case that the stock is under valued.
    • An investor who buys Corning and holds for the long run will enjoy exceptional returns.
  • MFRI Incorporated Needs To Enhance Shareholder Value Now
    MFRI Yesterday, 1:31 PM Carl Dinger III 2 Comments

    Summary

    • MFRI Incorporated is a cheap play on a growing insulating pipe business and has an opportunity to enhance shareholder value at a price that is well less than book value.
    • Valuation and future expected orders make a strong case for a stock buyback at these levels.
    • Management has not focused on increasing shareholder value and needs to now.
    • Ample liquidity on the balance sheet compels a share repurchase.
  • Hemispherx BioPharma: Any Pops On Ebola News Are The Time To Sell
    HEB Yesterday, 1:21 PM Daniel Ward 6 Comments

    Summary

    • Hemispherx BioPharma (HEB) stock has risen almost 28% since August/September 2014 lows due to Ebola fears.
    • Company has had significant ties with penny stock boiler room Stratton Oakmont and stock pumpers.
    • Management has had a tendency to issue a significant number of PRs at the time of disease fears/outbreaks and often dilutes on any sign of stock appreciation.
  • If Content Is King, Which Emperor Does Comcast Look Like?
    CMCSA Yesterday, 1:21 PM Joel Ladzinski 8 Comments

    Summary

    • Content is king but not all kings are equal.
    • This part of the series looks at Comcast's content to determine just exactly what kind of kings they are and how their reign will turn out.
    • The recent increase in streaming competition will put an even greater premium on content.
    • Online, direct to consumer streaming does not represent a significant risk to Comcast.
  • Made From The Best Stuff On Earth? Dr Pepper Snapple In Q3
    DPS Yesterday, 1:20 PM Kurt Avard 1 Comment

    Summary

    • The soft drink market continues to shrink in the face of falling volumes; even DPS with growth last quarter is not immune.
    • Revenues and EPS will exhibit no or negative growth in the third quarter.
    • Stocks are healthier than last year at this time, but a slightly undesirable P/E ratio may portend minor issues in the future.
  • Himax: Overreaction To Google News Has Resulted In Another Buying Opportunity
    HIMX Yesterday, 1:07 PM Devin D'Angelo 6 Comments

    Summary

    • The market is overreacting to Google's decision not to increase their investment in Himax Display .
    • Himax does not need to ramp up LCOS production capacity until late 2015 in order to meet sales forecasts.
    • The company has sold off once again to an attractive valuation.
  • Cadus - Still A Net-Net Even After Management Completely Transformed The Company
    KDUS Yesterday, 1:04 PM New Capital Comment!

    Summary

    • Cadus remains a net-net, with cash and liquid real estate exceeding the market cap.
    • Management has so far shown very fast execution and already acquired a full portfolio of real estate assets.
    • Due to strong downside protection risk of permanent loss of capital is minimal.
    • Next catalyst will be the sell-down of properties which will show how profitability the acquired assets can be flipped. I would expect the markups to be in double digits.
  • Bullish Outlook For Walgreen
    WAG Yesterday, 12:54 PM Maria Zahid Comment!

    Summary

    • Walgreen announced its financial results for Q4 2014 and the results for full year FY 2014. The results were impressive, although the retailer noticed some dips in certain areas.
    • The beginning of FY 2015 marked a surge in sales for the month of September. Sales rose by 9.4% in that month alone, indicating that some of the initiatives pursued.
    • The company has set a large outlook for synergies in the future and intends to spend almost $650 million in FY2015 for this purpose.
    • The company aims to achieve cost savings worth $1 billion by FY 2016 - a rather bold, but achievable, target.
    • Walgreen has managed to strike some lucrative deals such as collaborations with WebMD and Express Script holdings, while its earlier alliance with Boots has begun performing for the company.
  • Cut The Cord Or Keep Cable? Comcast In Q3
    CMCSA Yesterday, 12:40 PM Kurt Avard Comment!

    Summary

    • Comcast is not immune to the hits that have affected the cable industry in recent months.
    • Fiscally the company should be marginally stronger than opponents, though this may be due to Internet customers as opposed to more traditionally associated products.
    • Stocks may fall in the immediate short term, but will trend upward within the next week.
  • Era: Profit From The Misperception Falling Crude Will Hurt Demand For Era's Services
    ERA Yesterday, 12:32 PM Bram de Haas 1 Comment

    Summary

    • The oil and gas service line currently represents nearly three quarters of Era's business.
    • Oil prices have been decimated but the number of deep sea drilling platforms is increasing over the next few years.
    • Newer rigs require a higher POB count and tend to be worth it to operate once they have been delivered.
    • Meanwhile Era trades at a discount to the value of its helicopter fleet.
    • A few years of continued growth in assets, positive RoE, higher oil prices or a corporate event like a takeover can serve as catalysts.
  • TPC Is An Undervalued Construction Play
    TPC Yesterday, 12:30 PM Aamir Chaudry Comment!

    Summary

    • The company has its strongest backlog of projects since 2008.
    • Cheap forward P/E of 8.85 vs 12.4 comparison average.
    • Analysts value the firm, much higher from current levels at $35 - $42 per share.
  • Salesforce.com Tapping Into The Business Intelligence Market
    CRM Yesterday, 12:29 PM Stock Gazer 2 Comments

    Summary

    • A few days ago, Salesforce.com announced the launch of the "Wave" that is set to target the Business Intelligence market.
    • The Business Intelligence market has registered stable growth and was up nearly 8% in 2013, worth about $14.4 billion up until last year.
    • Wave faces some challenges: The software is very simple and given that companies are hiring specialists to conduct data analysis, Wave might not be able to tap into the market.
    • Salesforce posted a strong growth in its revenues during Q2: the company has raised revenue guidance for the full year and growth in revenue is likely to continue.
    • CRM holds a 52-week bearish range of $48.18 and a bullish range of $67. The year-end estimate for the stock price is a bullish $69.28, indicating that prices might rise.
  • S&P To Fall Hard...
    AA, INTC, MSFT Yesterday, 12:24 PM Individual Trader 19 Comments

    Summary

    • Cheap money and share buy backs have been the reasons why the market has rallied hard since 2009. Higher interest rates will put an end to this charade.
    • Equities have been rallying even in the face of firing workers. This cannot last as ultimately a business needs to be successful on main street and not just Wall Street.
    • Companies neglect in capital investment will ultimately increase unemployment levels. US companies are investing practically 0% into plant and equipment which shows again companies are not growing on Main Street.
  • Comparing America's 3 Largest Semiconductor Equipment And Materials Companies
    AMAT, KLAC, LRCX Yesterday, 12:19 PM Joseph Cafariello Comment!

    Summary

    • The Semiconductor Equipment & Materials industry is expected to outperform the S&P broader market significantly in the current quarter, next quarter, 2015 and beyond.
    • Mean/high targets for 3 largest U.S. Semiconductor Equipment & Materials companies – Applied Materials, Lam Research and KLA-Tencor - range from 7% to 49% above current prices.
    • Find out which among AMAT, LRCX and KLAC offers the best stock performance and investment value.
  • Statoil's New Gas Discovery Strengthens Company's Position To Be A Major Supplier To Growing Asian Markets
    Editors' Pick STO Yesterday, 12:15 PM Power Hedge 5 Comments

    Summary

    • Statoil recently made its seventh major discovery in the gas-rich block 2 region offshore Tanzania.
    • Tanzania is ideally positioned to ship natural gas to Southeast Asia.
    • Several countries in Southeast Asia are likely to greatly increase their imports of natural gas over the next two to three decades.
    • Statoil has sufficient gas reserves in the country to become a major supplier to these countries.
    • The company is currently constructing the needed infrastructure to take advantage of this trend.