Seeking Alpha
  • Renaissance Capital's Q1 2015 U.S. IPO Market Review
    BOX, GDDY, SHAK Today, 7:35 PM Renaissance Capital IPO Research Comment!
  • Fortune Brands Home & Security - Limited Appeal Despite Nice Bolt-On Acquisition Of Norcraft
    FBHS Today, 7:26 PM The Value Investor Comment!

    Summary

    • Fortune Brands acquires Norcraft in order to reinforce its cabinets business.
    • A sound strategic rationale, relative appealing multiples, and synergies make it a nice deal.
    • Despite the nice transaction, the deal will not move the needle in a significant way, as Fortune Brands will increase its revenues by just 10%.
    • The premium valuation of Fortune Brands implies that investors price in a strong housing recovery, as I have my doubts.
  • Royal Dutch Shell - A Royally Good Investment
    RDS.A, RDS.B Today, 6:27 PM The Value Portfolio 2 Comments

    Summary

    • Royal Dutch Shell has managed to noticeably decrease its workplace accident rate.
    • The company places a strong emphasis on shareholder returns with a dividend yield of >6%.
    • In the future the company is focused on competitive financial performance and capital efficiency to survive the current crash.
  • Juniper's New Product Launches Could Help Revive Declining Product Sales
    JNPR Today, 6:06 PM Trefis Comment!

    Summary

    • The company’s new products are largely aimed to help customers transform their networks to manage and capitalize on the growing opportunities of the connected world.
    • The latest product launches seem to be in line with the company’s plans to offer integrated networking solutions and should help in improving its top line going forward.
    • Our $25 price estimate for Juniper is about 10% ahead of the current market price.
  • Apple Watch: What Are The Margins?
    AAPL Today, 5:59 PM J. M. Manness 13 Comments

    Summary

    • Apple Watch will go on sale Friday, April 24.
    • In previous article we discussed possible sales revenue.
    • Here we discuss likely margins for the watches, especially the Edition collection.
  • Delta Air Lines: Not Much Of A Bullish Call
    DAL Today, 5:58 PM Stone Fox Capital 3 Comments

    Summary

    • Analyst predicted over 20% upside for Delta Air Lines.
    • The price target doesn't match the improving EPS estimates.
    • Delta Air Lines remains attractive compared to the industrial sector with risks more balanced than most think.
  • Micron: Memory, Oligopolies And Valuation
    MU Today, 5:53 PM Russ Fischer 15 Comments

    Summary

    • Micron is in a bad place for the next few quarters.
    • Oligopolies do not have a license to steal.
    • Micron's net margin is in decline.
  • 5 Reasons Why Diamondback Energy Stands Out From The Crowd
    FANG Today, 5:52 PM Sarfaraz A. Khan 1 Comment

    Summary

    • Energy companies are seeing greater-than-expected reduction in service costs, according to Goldman Sachs' analysts.
    • This was also evident in Diamondback Energy’s latest update.
    • Diamondback Energy in a strong position to weather the downturn, thanks to the following factors.
    • The company could increase drilling activity in 2016 if prices improve.
  • Amid Low Oil Prices, An Investment In Chevron Is Attractive

    Summary

    • Global energy demand is increasing, and estimated to increase by 40% by 2035.
    • Chevron has an overall strategy of growing cash flow, reducing spending, and selling non-core assets.
    • Chevron is a good long-term investment when the oil price is low, and its yield hits 4+%.
    • Chevron plans to cover its dividend with free cash flow by 2017 with oil price expected to recover to $70/bbl.
  • Noranda Aluminum: Highly Leveraged, But Potential Upside
    NOR Today, 5:32 PM Alpha World Comment!

    Summary

    • Noranda shares are down more than 80% from the levels they traded at peak in 2011.
    • The weakness in aluminum market has had a negative impact on the company and forced to undertake cost reduction program.
    • A major component of the cost reduction efforts is bringing down electricity costs at the New Madrid smelting facility.
  • Potential Issues For Long-Term Solar Products
    RGSE, SCTY, VSLR Today, 5:12 PM Simple Investment Ideas 1 Comment

    Summary

    • Because the NPV of long-term rooftop solar products is dependent upon future events, there are a number of factors that could drastically change the NPV of these products.
    • A large concern for investors is how homeowner changes will negatively affect the default rates of solar lease/PPAs, although the current data suggests this concern is largely overblown.
    • Solar lease/PPA renewal rates are also a huge area of debate among investors, and are perhaps one of the most unpredictable figures in long-term rooftop solar products.
    • Leading rooftop solar companies have much at stake in how these potential issues play out, as much of their enterprise values' are dependent upon the outcome of these issues.
  • 'Home' The Short-Term Story For Dreamworks, Consumer Products And Television Long-Term Bets
    DWA Today, 5:10 PM Chris Katje 1 Comment

    Summary

    • "Home" outperformed estimates and provides a short-term boost to Dreamworks Animation as the only 2015 release.
    • Television revenue set to hit $200 to $250 million in 2015 led by new shows on Netflix.
    • Dreamworks Animation signs new deal with Verizon for 200 hours of original content, strengthening television segment and diversifying importance of Netflix.
    • Consumer products and increasing storyline to watch with new television launches on Netflix in 2015 and new Kung Fu Panda and Trolls movies in 2016.
  • Zix Is Poised For Growth Due To OEM, Healthcare And Growing BYOD Market
    ZIXI Today, 4:50 PM Cameron Graham Comment!

    Summary

    • Zix Corp. is a security company that has shown lackluster results, but is in a good position to reward patient investors.
    • Its core markets - email encryption and BYOD - should see accelerated growth over the next few years.
    • This is due to expanded OEM partnerships, recent healthcare regulations regarding digital security, and the growth of BYOD services among enterprises.
  • Criteo Continues To Build A Pivotal Positioning In Automated Ad Targeting
    CRTO Today, 4:50 PM Graycell Advisors Comment!

    Summary

    • Criteo has a fairly unique and pivotal position in online ad targeting across platforms.
    • Last quarter results demonstrated continued business momentum across geographies and platforms.
    • Engine upgrade, expanding platform and channel presence, growing mobile in-app inventory, and pure-play stature in a consolidating industry will continue to drive growth and a favorable valuation.
    • Anticipate stock price to reach $52 to $54 between now and end of 2015.
  • Genfit Is An Even Bet To Recover In The NASH Race
    GNFTF Today, 4:43 PM Clinically Sound Investor 1 Comment

    Summary

    • Shares tanked more than 30% after mixed data from an advanced trial in nonalcoholic steatohepatitis, or NASH.
    • The company is still pushing for a Phase 3 trial for its lead drug.
    • The next catalyst is a presentation at a major convention in April, which could shed more clarity on the results.
  • AmerisourceBergen: A Great Growth Story
    ABC Today, 4:43 PM Bill Gunderson 1 Comment

    Summary

    • AmerisourceBergen is poised for growth in the drug distribution industry.
    • It has a 10-year contract with Walgreens Boots Alliance.
    • And it's benefiting from trends like the new high margin drug cycle, growth in generics, and biosimilars.
  • Going Long On Amazon's AWS Glacier
    AMZN Today, 4:43 PM Randall Radic 3 Comments

    Summary

    • Amazon appears to be a poor investment.
    • Google's Nearline is supposedly better than Amazon's Glacier.
    • Comparison reveals that Amazon's Glacier is better, faster, and cheaper.
  • Jumei: Recent Correction Overdone, Buying Opportunity For Investors
    JMEI Today, 4:41 PM ONeil Trader Comment!

    Summary

    • Jumei has been severely punished for missing Q3 numbers.
    • The shift of beauty products from marketplace sales to merchandise sales negatively affected the growth rates but the Q1 outlook shows that the growth is back on track.
    • The company initiated a share repurchase program which is enough to buy 4.3% of total outstanding shares at the current price.
    • Valuation is attractive at the current price given the growth profile and Jumei is currently trading at a significant discount to Vipshop.
    • Reiterating my bullish view on Jumei but reducing my price target.
  • Ideal Power May Be Ideal To Power Your Portfolio
    IPWR Today, 4:35 PM GuruFundPicks 1 Comment

    Summary

    • A game-changing micro-cap company armed with a disruptive technology with strong IP protection and targeted, large, growing end markets, Ideal Power is one of the long-term picks in our portfolio.
    • It has an extensive list of partners, alliances and agreements, and industry recognition and awards for a company its size, validating its technology and product leadership.
    • Pace of distribution agreements and orders is accelerating since the beginning of 2015, paving the way for improved quarterly results going forward.
    • With projected revenue growth approaching 100% for the next few years, it sells at a reasonable multiple to forward sales, and our long-term price target is $15 in 12-18 months.
  • Encore Wire: Aluminum Plant Expansion Will Benefit This Good Company In A Bad Industry
    WIRE Today, 4:30 PM Mark Lin Comment!

    Summary

    • Volatile commodity prices and irrational price competition have depressed Encore Wire's margins and dragged down its share price in the past year.
    • Encore Wire is a good company, given its low cost advantage, its immunity to foreign competition and the high quality of its reported financial numbers.
    • New aluminum plant expansion will benefit Encore Wire in the mid-to-long term, as it evolves to become a full line producer and one stop shop for its customers.
    • Potential short-term catalyst includes margin expansion resulting from the stabilization of copper prices and the subsidizing of aluminum pricing pressure.
    • Target price of $45, assuming a 18 times forward P/E and a FY2016 EPS of $2.50, implies 22% upside.
  • 58.com: Strong Execution And Acquisitions Increase Upside Potential
    WUBA Today, 4:21 PM ONeil Trader Comment!

    Summary

    • 58.com delivered revenue growth above guidance in every quarter since going public.
    • The acquisition of Anjuke makes the company’s competitive position in the housing vertical much stronger.
    • 2015 will be a year of significant investments and 58.com is likely to incur losses in the following quarters but the long-term profitability outlook remains unchanged.
    • Local services a huge and untapped market.
    • Reiterating my view and raising my price target.
  • Nike Is Showing Continued Growth And Strong Company Performance
    NKE Today, 4:21 PM LN Investors Comment!

    Summary

    • Nike can maintain earnings growth trends due to the sports brand name and wide consumer support.
    • Strong forward orders show there's a lot of business in the pipeline in the near future.
    • Low long-term debt and a high cash position over four times long-term debt indicate Nike is very strong financially.
    • Nike earnings expected to grow in the mid-teens.
  • Silvercrest Asset Management Group: Excellent AUM Growth Continues
    SAMG Today, 4:21 PM Martin Vlcek Comment!

    Summary

    • While the recent AUM and revenue growth rates have decelerated from the double digits, the current 14% AUM and 15+% revenue growth rates are more than solid.
    • Based on conservative assumptions of lower growth in the 10% region and stagnant to slightly falling margins, Silvercrest still offers a ~25% upside within 12 to 18 months.
    • In the long run, SAMG offers further ~10% annual stock market gains if the current bull market lasts.
    • A potential acquisition of some company in the New York area is just an added bonus on top of solid current organic growth.
  • Trinity Biotech: Market Is Missing The New Tests Earnings Potential
    TRIB Today, 4:05 PM Alpha Gen Capital Comment!

    Summary

    • Trinity is a medical device seller with strong margins and recurring cash flows. The business model creates a large barrier to entry from the competition.
    • Going through the market opportunities of the two new components of the business, we see an extremely large earnings opportunity starting next year.
    • We think the market is missing the potential of the Troponin I product given the market size and inferior products on the market which no longer meet FDA guidelines.
  • Smart & Final: Continued Execution Should Move Shares Higher In 2015
    SFS Today, 3:31 PM Dallas Salazar Comment!

    Summary

    • SFS has executed its defined, consistent growth strategy extremely well and that has been good for shareholders.
    • With SFS generating healthy top-line growth that efficiently trickles down to the bottom line and cash flow, expect the street to continue trusting this name.
    • SFS should be able to hold its debt balance flat in 2015, or even slightly deleverage, which would be a hugely bullish development.
    • Continue to own SFS as it's a growth name in a non-growth space that also offers some defensive characteristics.
  • Bank Of America - Will Q1 EPS Bring Risk Or Reward?
    BAC Today, 3:27 PM Markos Kaminis 11 Comments

    Summary

    • While the market has penalized banking shares for the Fed's dovish stance and BAC shares for the Fed's qualified approval of its capital plans, I see something else afoot today.
    • Trepidation ahead of BAC's Q1 EPS report is likely weighing on the shares, given its disappointment reported in the fourth quarter of 2014.
    • The long-term outlook for Bank of America is clearly improving and the stock is cheap on a relative basis.
    • So the question of whether BAC will bring risk or reward in Q1, which seems to be afflicting the shares, is reason enough to buy it today for the long-term.
  • Huge Micron Selloff Offers Fresh Entry Point: 3D NAND Could Be A Game Changer
    MU Today, 3:08 PM Brian Wu 13 Comments

    Summary

    • Micron shares have sold off massively in the current year.
    • This came after the company failed to meet revenue expectations and also because of news that Micron might lose the contract to supply Apple DRAM chips.
    • Micron will launch 3D NAND later this year, which is likely to become a significant revenue driver for the company.
  • Why The Red Hat Story Can Only Get Better
    RHT Today, 3:04 PM Brian Wu 1 Comment

    Summary

    • Red Hat recently announced great fourth quarter and full year fiscal 2014 results that beat on both top and bottom line expectations by analysts.
    • The strong growth was driven by cross-selling opportunities created by OpenStack and OpenShift.
    • The momentum is likely to build up in future and help the company to sustain its strong growth.
  • Activision Blizzard Should Explore More Opportunities With Its 'Skylanders' Technology
    ATVI Today, 3:00 PM Steven Mallas 3 Comments

    Summary

    • "Skylanders" has been a successful franchise for Activision Blizzard, but perhaps it could expand its scope.
    • Activision Blizzard should consider more adult-targeted titles for the platform.
    • With Disney and Nintendo in the mix, staying ahead of the curve in the portal-collectible-figure space is vital.
  • Tata Motors Is An Attractive Opportunity: An Algorithmic Analysis
    TTM Today, 2:56 PM I Know First Research 1 Comment

    Summary

    • Tata Motors recently announced a rights offering to raise $1.2 billion, which will be used to fund new models in the coming years.
    • The company is set to benefit from a growing economy in India with its commercial vehicle sales.
    • A joint venture for a new plant in China and a new premium compact modelwill allow Jaguar to increase demand in China and boost sales.
    • I Know First’s algorithm is bullish on Tata Motors for the long-term time horizon.
  • Check Point: How Much Higher Can It Go?
    CHKP Today, 2:55 PM Ian Deutsch 1 Comment

    Summary

    • Domination of the network security market keeps Check Point on top.
    • "High-value" client base gives Check Point a unique opportunity for further growth.
    • Active commitment to success gives investors a low-risk, high-ceiling stock.
    • Valuation methods reflect 26.1% upside potential.
  • Global Partners Will Beat The S&P 500 Over The Next 12 Months
    GLP Today, 2:38 PM Quantified Alpha 1 Comment

    Summary

    • Global Partners is trading at an extremely attractive valuation, with the stock looking cheap on a revenue, earnings, book, and free cash flow basis.
    • GLP's share price has outperformed the energy sector during the collapse of crude, and the company maintained excellent profitability and growth.
    • Secondary offerings tend to be a bad sign historically, but we feel GLP is the exception to the rule.
    • We expect Global Partners to outperform the market over the next twelve months by a wide margin.
  • Gilead Versus Celgene: Value Play Versus Reinvestment Opportunity
    GILD Today, 2:36 PM Intrepid Investor 32 Comments

    Summary

    • Smart Money craves future earnings more than the latest earnings. Reinvestment drives future earnings.
    • In 2014, Gilead's reinvestment ratio went down; Celgene's went up. That's where the Smart Money went.
    • Gilead's investment in R&D went up in 2014, but in its 10-K confesses, "[we do] not track total R&D expenses by product candidate, therapeutic area or development phase."
  • Gordmans Stores: Promising Shareholders Higher Returns
    GMAN Today, 2:35 PM Ross Capital 2 Comments

    Summary

    • Gordmans delivered revenue growth of 2% in its latest quarter. Earnings declined by 14%.
    • The market Gordmans serves is expected to grow in the future.
    • Adding new stores will help the company in extracting a bigger share of market growth.
    • Internal restructuring, targeted to improve customer service, will motivate customers to recur transactions.
    • Gordmans is undervalued by 74%.
  • Apple: Big Opportunity To Create Value In Mobile Payments
    AAPL Today, 2:23 PM Stone Fox Capital 11 Comments

    Summary

    • Apple Pay revenues will probably never impress the market.
    • The benefit exists in the high margins and value creation of eventually controlling mobile payments.
    • Apple remains a cheap stock with a big catalyst in Apple Pay that could help boost the PE ratio due to the recurring nature of payments fees.
  • My Top Electrical Equipment Stocks For 2015
    AME, AMOT, AYI Today, 2:16 PM Stan Stafford Comment!

    Summary

    • In this series of articles, I will be reviewing individual industry sectors and selecting my favorite stock picks for 2015.
    • For Part 20, I will be reviewing the Electrical Equipment industry sector, taking a look at revenue/earnings growth, valuations, recent performance, and the overall financial stability of companies.
    • Out of this group of reviewed stocks, my top stocks for 2015 are Allied Motion and Ametek.
  • Royal Hawaiian Orchards - A Valuation So Low That It's Nuts To Ignore
    Today, 2:15 PM Steve Harris 7 Comments

    Summary

    • Royal Hawaiian has embarked upon a vertical integration strategy, which if successful, could provide the catalyst for the stock price to double by the end of 2016.
    • At the current price of $2.95 per share, the company presents a compelling risk/reward profile with significant upside, and downside limited by the substantial value of its owned real estate.
    • Royal Hawaiian has the potential to boost cash flow to at least 30 cents per share, which would provide a 10% dividend yield at current prices.
    • Insider ownership has increased significantly during the past five years; insiders now control 71% of the outstanding units.
    • New strategy will capitalize on the perceived health benefits of macadamia nuts and the trend toward consumption of healthy, all-natural, non-GMO, and gluten-free foods.
  • Plug Power: Accelerated Filer Status Triggers Sarbanes-Oxley Fraud Controls
    PLUG Today, 2:14 PM Matthew G. Lamoreaux 10 Comments

    Summary

    • Plug Power replaces chief accounting officer after missing SEC accelerated filer deadline.
    • Additional scrutiny from the auditor's report on ICFR, combined with forthcoming revenue recognition changes, increases the risk of discovering material errors that could require an earnings restatement.
    • The cumulative result of increased auditor scrutiny and implementation of new revenue recognition standards will be greater investor confidence in the company's results.
  • 3 Opportunities For InvenSense To Grow
    INVN Today, 2:11 PM Stone Fox Capital 3 Comments

    Summary

    • InvenSense is only scratching the surface with premium smartphones.
    • Future market opportunities include IoT and wearables, along with growing the amount of content in existing smartphones.
    • InvenSense continues to trade at an attractive valuation, with the market overly focused on the current gross margins due to a high concentration of revenue from Apple and Samsung.
  • Applied Material's Venture Group Invests Into UV LED, An Interesting Portfolio Expansion With Growth Potential
    AMAT Today, 2:01 PM I Know First Research Comment!

    Summary

    • The company took part in the series B funding round for RayVio, a leading UV LED solutions company.
    • The company’s healthcare solutions might prove to be a huge growth assets in the long run, and a very smart investment today.
    • Both algorithm and analysts agree this is a bullish investment.
  • Why Bombardier's Latest Delay A Buying Opportunity For Investors
    BDRAF, BDRBF Today, 1:56 PM Cameron Conway 1 Comment

    Summary

    • Bombardier once again delays its CSeries aircraft.
    • PR disasters have continued to decrease the price of the stock.
    • Is there enough of a long-term potential to justify investing in Bombardier now?
  • Molycorp Seeks More Oaktree Debt - Kicking The Can Down The Road?
    MCP Today, 1:50 PM Shock Exchange 8 Comments

    Summary

    • Molycorp is rumored to be in talks to receive access to additional debt from Oaktree.
    • The additional debt could be used to repay over $200 million of convertible debt maturing in June 2016.
    • Given its operating losses and cash burn, the company needs fresh capital.
    • A debt-for-debt exchange would be equivalent to kicking the can down the road.
  • Recent GPU News And Rumors And What They Mean For AMD And NVIDIA
    AMD Today, 1:49 PM Technology Investing 18 Comments

    Summary

    • NVIDIA's Titan X has been released, and is disappointing.
    • AMD's FreeSync will clearly become the standard, G-Sync will disappear.
    • Mantle is essentially discontinued, but provided tangible benefits for AMD.
    • AMD continues to generate goodwill among consumers.
  • GoDaddy: Unexciting IPO With Looming Opportunity
    GDDY Today, 1:47 PM APBK Capital Comment!

    Summary

    • GoDaddy’s IPO has several signals that scream “Avoid me."
    • The valuation based on current performance is slightly aggressive but inline with performance.
    • GoDaddy’s growth prospects look favorable for patient investors.
  • BlackBerry: Very Attractive At These Levels
    BBRY Today, 1:34 PM Stock Traders Daily 79 Comments

    Summary

    • Analysts love to hate this stock.
    • But those points of view can change.
    • BBRY is very attractive if it holds these levels.
  • Will The Potential Intel-Altera Deal Benefit Intel?
    INTC, ALTR Today, 1:29 PM Arie Goren 11 Comments

    Summary

    • Acquiring Altera might be a smart move by Intel, on condition that it would not pay an excessive price for the company, being too eager to make the acquisition.
    • The deal would provide Intel with new business lines like automotive, industrial and communication applications, and bring new production work to its cutting-edge factories.
    • The possible deal could also benefit Altera since it would provide cost cutting and stronger sales team which can open its chips to a wider market.
    • In my view, Intel stock is undervalued, and it is a Buy right now.
  • 4 Reasons To Like Cigna
    CI Today, 1:26 PM Healthy Appreciation 2 Comments

    Summary

    • Cigna trades at a favorable ratio to its competitors and the S&P 500.
    • Cigna's predicted growth of more than 11% annually along with its expected margin expansion keep it insulated even if there is a widespread fall in PE ratios.
    • Cigna's portfolio mix focusing on self-funded customers protects it against costs rising unexpectedly.
  • GameStop Should Take A Cue From Best Buy
    GME Today, 1:13 PM Daniel James 1 Comment

    Summary

    • GameStop's core business is in decline, faced with increased competition from online retailers as well as new distribution methods.
    • Although the company is trying to diversify away from video games and consoles, selling smartphones and tablets is unlikely to save GameStop from becoming irrelevant.
    • Following Best Buy's example, the company should work on improving its in-store experience and leveraging its considerable expertise in the booming video game industry.
  • INC Research: An Emerging Growth Company
    INCR Today, 1:08 PM Rudy Sangari Comment!

    Summary

    • INCR recently finished its first full quarter as a public company.
    • The company operates in a growing market.
    • Company is highly leveraged.
  • Short Sellers May Be Interested In McDonald's
    MCD Today, 1:07 PM Stock Traders Daily 6 Comments

    Summary

    • MCD is not an attractive value play.
    • EPS Growth rates are expected to be dismal.
    • If certain things play out margins will likely deteriorate.