Seeking Alpha
  • Apple's Watch Strategy Embraces The 80-20 Rule
    Editors' Pick AAPL Today, 8:00 AM Neil Cybart 8 Comments

    Summary

    • Apple Watch will likely be loosely guided by the premise behind the 80-20 rule, where approximately 80% of Apple Watch profits will come from 20% of Apple Watch customers.
    • The implications are significant when contemplating how management will treat the Apple Watch line in subsequent years.
    • Apple will likely dedicate significant attention and resources to updating higher-end Apple Watch models and bands.
    • In essence, Apple would be catering to the 20% of the iOS customer base that values exclusive personalization, which will boost revenues and margin.
  • Transocean: April Fleet Status Report
    RIG Today, 6:05 AM Profit Propositions 2 Comments

    Summary

    • There are several small extensions not mentioned in the press release.
    • Dayrates for most contracts have decreased from their original contractual levels.
    • The company is poised to reduce expenses substantially below its projected guidance.
  • Despite Low Oil Prices, Schlumberger Stock Is A Great Investment
    SLB Today, 5:37 AM Arie Goren 1 Comment

    Summary

    • Although more than eight months have passed since oil prices started to fall, Schlumberger has succeeded to deliver strong financial results.
    • The company reported first quarter 2015 earnings better than expected and generated strong free cash flow of $1.2 billion, an increase of 74% year-on-year.
    • Despite sequential revenue declines in each region, Schlumberger has succeeded to keep its margins fall at a minimum level.
    • I consider SLB's stock as an excellent long-term investment due to its leading position in such an important market, and the impressive results it has obtained in this down cycle.
  • Alcoa: As Shares Bounce Along 52-Week Low, Insiders Buy
    AA Today, 5:28 AM Willow Street Investments 2 Comments

    Summary

    • Insiders recently purchased the company’s shares, continuing a pattern of insider purchases since 2013.
    • The company’s shift from the upstream business to value added businesses will continue to benefit from aerospace demand and rising aluminum consumption from autos.
    • The company’s recent acquisitions will increase its exposure to the growing aerospace industry.
    • The company’s continued alteration of its cost structure and a tight aluminum market also bodes well for its long-term performance.
    • Increased competition from China and adverse currency effects do, however, present challenges.
  • Ford Shines In Shanghai
    F Today, 5:14 AM Orange Peel Investments 2 Comments

    Summary

    • Ford introduces the redesigned Taurus overseas.
    • The Taurus, once American commonplace in the world of automobiles, is looking to make a comeback in densely populated China where there's a demand for American luxury.
    • Ford continues to be a good investment, any way you look at it.
  • Reviews Of 15 Marijuana Stocks Before The Marijuana Investor Summit - Part VI
    MBOO, MCIG, MCPI Today, 5:00 AM Anthony Cataldo Comment!

    Summary

    • This is the sixth of a 10 part series, to be completed and submitted for Seeking Alpha editorial consideration.
    • Timing is important –Investor Summit will be held in Colorado from April 20 through April 22, 2015.
    • Expect an increase in marijuana (MJ) sector news releases leading up to, during, and after this event.
    • The Marijuana Business Conference and Expo will follow the Marijuana Investor Summit, less than 1 month later, on May 19-21, 2015.
    • I began collecting data for this series on March 27, 2015, and hope you find the series helpful in your MJ sector investment decision-making process.
  • Synchrony Financial: Q1 2015 Results - Investing For The Future `
    SYF Today, 4:36 AM WG Investment Research 1 Comment

    Summary

    • Q1 '15 earnings beat estimates by $0.02, even with the significant infrastructure and technology investments.
    • The Other Expense category will continue to pressure earnings until the final split.
    • The company was able to continue its impressive growth in several key metrics.
    • Long-term investors would be wise to accumulate shares around the $30 range in anticipation of the final split.
  • L Brands Posts Strong March Sales Numbers: What Next?
    LB Today, 4:33 AM Stock Ticker Comment!

    Summary

    • Specialty retailer and the parent company of Victoria’s Secret and Bath & Body Works L Brands (NYSE: LB) has posted solid sale growth for the month of March.
    • L Brands saw comparable store sales increase 9% as compared to the previous year while net sales grew 6% from $924 million in March 2014 to $981 million in 2015.
    • There are definite upsides in store the share prices with both of its major segments looking to generate organic growth and ride the wave of positive market trends as well.
    • The company’s impressive March sales performance can also be attributed to impressive comparable sales at Bath & Body Works stores.
  • AT&T: I'll Buy 10 Out Of 10 Times At This Price
    T Today, 2:54 AM Dan Strack 11 Comments

    Summary

    • AT&T fell under $32.50 on Friday, before closing at $32.51.
    • Over the past 3 years, the stock has established a strong level of support in the $32-$32.50 range.
    • At $32.50, AT&T offers investors a 5.8% yield while waiting for the stock to appreciate off its lows.
  • Dot Hill Systems Corporation Is Transitioning Into Higher Profits
    HILL Today, 2:08 AM Sergio Heiber 1 Comment

    Summary

    • HILL is transitioning successfully into more profitable vertical markets.
    • HILL has plenty of upside based on PEG and technicals.
    • Demand for storage solutions is being fueled by several factors.
  • ARC Group: Industry Expansion And Acquisitions To Drive Earnings Growth
    ARCW Today, 1:59 AM Ross Capital Comment!

    Summary

    • ARC delivered revenue growth of 36% in its latest quarter. Profit converted into a loss.
    • The market ARC serves is expected to grow in the future.
    • Profitable acquisitions will help the company in extracting a bigger share of market growth.
    • Currency hedging will mitigate the impact of Euro depreciation.
    • ARC is undervalued by 12%.
  • Qualys: Growth Opportunities Galore
    QLYS Today, 1:13 AM Lester Goh Comment!

    Summary

    • Industry outlook, large, growing and diverse customer base, highly scalable and somewhat capital-intensive business model.
    • SaaS subscription model, up-selling opportunities, inorganic growth opportunities.
    • Continued expansion of strategic partnerships and new product offerings.
    • DCF indicates slight upside from current levels.
  • Transocean Ltd. - Complete Fleet Analysis As Of April 17 And Commentary
    RIG Today, 12:19 AM Fun Trading 2 Comments

    Summary

    • Transocean released Friday its April fleet status with only $26 million added to the backlog. One new contract and one extension on a positive side. One early termination as well.
    • Estimated out-of-service days decreased by 59 days due to the GSF rig 140 and stand now at 48 in 2015.
    • RIG intends to scrap the GSF Explorer and will include a non-cash impairment of $100-$120 million in 2Q15. RIG expects to scrap a total of 19 rigs in 2015.
  • InsiderInsights.com Daily Round Up 4/17/15: YELP, OPK, BH, AGCO
    AGCO, BH, CI Yesterday, 9:45 PM InsiderInsights 2 Comments

    Summary

    • Tables of the top insider purchases and sales filed with the SEC on 4/17/15, based on dollar value.
    • Dollar values often do not equate with significance when it comes to insider trades.
    • Proprietary Insider Company Ratings are relayed to clarify significance.
  • IBM: The Transformation Strategy On Full Throttle
    IBM Yesterday, 5:14 PM StockBot 27 Comments

    Summary

    • IBM is shedding its old businesses and transforming into an entirely new entity.
    • Investors need to have patience as they wait for the transformation strategy to be executed.
    • I believe the company's future prospects have brightened based on two catalysts highlighted in the article.
  • Roxgold: Several Key Achievements Make The Stock A Buy
    ROGFF Yesterday, 5:14 PM Hard Asset Investments Comment!

    Summary

    • Roxgold recently announced first results from development infill drilling at the 55 Zone, and they were exceptional.
    • In addition, construction has commenced at the Yaramoko Gold Project, which is on track for initial production by Q2 2016.
    • Following the approval of a $75 million debt facility, the project is fully-financed to production.
    • I'm bullish on Roxgold shares and think the company is a strong takeover target.
  • B2Gold's Record Quarter Means Shares Are A Buy
    BTG Yesterday, 5:13 PM Hard Asset Investments 2 Comments

    Summary

    • B2Gold just reported outstanding quarterly production results.
    • For the first quarter, B2Gold reported 115,859 ounces of gold production, 20% greater than the previous year. Gold revenue was a record $162 million.
    • The company remains on track to meet its 2015 production guidance of 500,000 to 540,000 ounces of gold at all-in sustaining costs between $950 to $1,025.
    • I think shares are a buy here as the company ramps up production at the low-cost Otjikoto mine in Nambia.
  • Rubicon Is On Track For Initial Production, And Shares Remain A Buy
    RBY Yesterday, 5:12 PM Hard Asset Investments 2 Comments

    Summary

    • Rubicon Minerals recently announced that development and construction at the Phoenix Gold Project is on schedule for initial production by mid-2015.
    • This is positive news, as there have been no setbacks so far at the Phoenix mine. Production should start without any problems.
    • I think Rubicon is undervalued here and gives investors big upside to the price of gold. The start of production should also provide a catalyst for share price appreciation.
  • Argonaut Gold Reports Q1 Production Results
    ARNGF Yesterday, 4:16 PM Christopher De Sousa Comment!

    Summary

    • Argonaut Gold produced 40% more gold equivalent ounces in Q1/15 compared to the prior-year quarter.
    • Gold risk remains high for the company as cash costs have steadily increased over the past two years.
    • We roughly estimate Argonaut Gold to generate ~$50 million in total revenues in Q1/15 on solid gold sales.
  • Intel Train Is Leaving The Station
    INTC Yesterday, 4:13 PM Bruce Burnworth 43 Comments

    Summary

    • EPS is expected to increase during 2015 to an annual average rate of over $2.50 per year. The quarterly movement in EPS will be dramatic.
    • 5 out of 11 top analysts have recently set Intel stock price targets above $40, as high as $48.
    • Historically, as Intel EPS rises, its PE ratio also rises.
    • With an EPS of $2.50 and corresponding PE ratio of 17, Intel stock would reach $42.50 per share by the end of 2015.
    • A likely bump in EPS caused by the sales of Skylake with Windows 10 would increase Intel to north of $45 by December 2015, possibly much higher.
  • Hanergy Thin Film Power - Irrational Exuberance
    HNGSF Yesterday, 3:51 PM Sneha Shah 1 Comment

    Summary

    • The company deals in thin film technology, which has become a niche technology.
    • Revenues are generated mostly by selling to the parent company with very little or no outside sales.
    • The market capitalization does not support the fundamentals.
  • I Closed My WhiteWave Position And Bought Carnival Corporation In My Growth Portfolio
    CCL, WWAV Yesterday, 1:20 PM Abba's Aces 1 Comment

    Summary

    • I added Carnival on the notion that consumers have a lot of cash now and are going to spend their money on taking vacations this summer.
    • WhiteWave just had been running too high for so long that I wanted to take profits in the name, but I should be back in it in the future.
    • The growth portfolio is up 3.85% this year against the 1.08% gain in the S&P 500.
  • Week In Review: Menarini And Lummy Announce Novel Drug In-Licensings For China
    ARGS, GTHP, PKI Yesterday, 1:07 PM ChinaBio Today Comment!
  • CAMAC Energy's Reverse Stock Split Is Good For Investors
    CAK Yesterday, 1:00 PM MTF Investing Comment!

    Summary

    • CAMAC began transforming in November 2013 with the purchase of the OML 120 and 121 fields in Nigeria.
    • After the purchase, the company began to aggressively drill the Oyo-7 and Oyo-8 wells.
    • The reverse stock split will help move the company into the institutional investor realm.
  • Thompson Creek: Q1 2015 Results May Make Reaching 2015 Copper Guidance Challenging
    TC Yesterday, 12:21 PM Elephant Analytics 1 Comment

    Summary

    • Thompson Creek reported Q1 2015 production of 15.4 million pounds of payable copper and 46.1 thousand ounces of payable gold.
    • Mill throughput was adversely affected during the quarter by winter weather and mechanical issues.
    • Full-year gold guidance appears quite attainable still. Original copper guidance appears difficult to meet without significant improvements in grade or recovery during the rest of 2015.
    • There is significant variance in grades at Mount Milligan (especially gold), so Thompson Creek will need to provide an update on guidance for a more definitive answer though.
    • A 10 million pound decrease in copper guidance would change Thompson Creek's FCF breakeven point from $2.42 copper to $2.71 copper (with $1,200 gold).
  • Jack In The Box May Pop Higher
    JACK Yesterday, 12:18 PM Alexander Valtsev 5 Comments

    Summary

    • Jack In The Box is a well-known fast food chain with a Mexican food restaurant network. The Street loves the stock, as ownership sheets show.
    • The stock recently received a number of buy recommendations from respectable investment houses. I analyzed to see if they had solid backing.
    • Despite the run-up in the stock price, partially fuelled by buybacks, the stock is worth buying, provided that management can deliver the growth story.
  • Honeywell International: Watch For Buying Opportunities
    HON Yesterday, 12:10 PM Winning Strategies Comment!

    Summary

    • Honeywell announced first quarter results.
    • Currency headwinds impacted its sales performance.
    • The company lowered its sales guidance but raised its earrings outlook.
    • Its stock tumbled on the earnings announcement which is providing an attractive buying opportunity.
  • Taiwan Semiconductor: Outlook Still Good Despite Soft Guidance
    TSM Yesterday, 12:08 PM Brian Wu 1 Comment

    Summary

    • Taiwan Semiconductor issued lower full-year revenue guidance during its latest earnings call, citing weaker growth in the semiconductor market.
    • About the same time fresh speculation emerged that the company might get the Apple A9 chip business which Apple had given to GlobalFoundries.
    • This new development, plus its 16nm nodes, might change the outlook for the company both in the current year and in the coming year.
  • Contango Oil And Gas - This Undercovered Energy Stock Can Be A Good Bet
    MCF Yesterday, 12:02 PM Harsh Singh Chauhan 3 Comments

    Summary

    • Like many other oil stocks, Contango Oil has dropped massively in the past year, but this looks like an opportunity.
    • Contango will operate within its means this year, but it will still focus on key assets in the Woodbine formation in order to improve its long-term prospects.
    • Brent crude is now above $63 a barrel, while natural gas consumption is also slated to increase, which means Contango's turnaround is highly likely.
    • Contango has low debt, which means that the company doesn't have to bear the burden of high interest expenses.
  • Hanwha Q Cells: Why Investors Need To Take A Closer Look At This Solar Company
    HQCL Yesterday, 11:58 AM Anup Singh Comment!

    Summary

    • Hanwha recently merged with Q Cells to create the largest manufacturer of solar cells, which is a smart move considering Q Cells' efficiency roadmap.
    • Hanwha has established a facility in South Korea that will help it avoid duties in the key North American market.
    • Hanwha's S series modules comprise of a slimmer frame, resulting in a reduction in material and shipping costs, and this will have a positive impact on its bottom line.
  • Yahoo Needs Disruptive Search Technology: Partnerships Are No Longer A Cure
    YHOO Yesterday, 11:50 AM Alex Cho 11 Comments

    Summary

    • Yahoo's Microsoft partnership is no longer exclusive.
    • This indicates that Yahoo has further flexibility to drive monetization, design and functionality in search.
    • With this new-found freedom, Yahoo will be betting everything on contextual search..
    • While this adds legs to the long-term investment thesis, it's not yet conclusive as to whether Yahoo has the necessary clout to drive engagement.
  • Why Yelp Shares Are Likely To Remain Depressed For Much Of The Year
    YELP Yesterday, 11:45 AM Brian Wu 5 Comments

    Summary

    • Yelp’s shares have continued to fall in the current year.
    • Most of the company’s investors are concerned about the drastic slowdown in the company’s traffic growth.
    • There are no significant tailwinds that can help Yelp reverse the situation which might mean its shares stay down for long.
  • Emerson Radio Could Be A Good Buy If Downward Pressure Continues
    MSN Yesterday, 11:13 AM Nicholas Bodnar 2 Comments

    Summary

    • Zero debt company trading below NCAV.
    • 2014's free cash flow per share is $0.22 yet earnings per share are $0.05. This suggest an undervaluation at current prices.
    • Earnings, revenue and FCF have dropped significantly due to loss of business from a huge customer.
    • I expect the company to stay profitable in the future due to the simplicity of running the business.
  • MOCON Has Some Headwinds For 2015, But A Good Underlying Business
    MOCO Yesterday, 10:25 AM Stephen Simpson, CFA 3 Comments

    Summary

    • This could be a challenging year for revenue growth given that almost 40% of sales occur in Europe and the energy sector has seen drilling activity plunge.
    • MOCON is still well-placed to exploit future growth in energy, as well as the global growth of packaged food and the adoption of new packaging materials.
    • High single-digit revenue and FCF growth, and mid-teens growth in FCF and EBITDA over the next three to five years, can support a fair value in the low $20's.
  • Sanderson Farms: Efficiency And Strong Financials At Steep Discount
    SAFM Yesterday, 10:12 AM John Zhang 10 Comments

    Summary

    • Bear case is weak.
    • Impressive competitive advantages.
    • Pristine balance sheet.
    • Severely undervalued relative to peers and overall market.
  • Duke Energy: The Trough Is In
    DUK Yesterday, 10:06 AM Yen Yoo 4 Comments

    Summary

    • Duke Energy's shares pulled back from ~$90 to ~74.
    • The pull back is not highly corroborated with an in-depth analysis of the adverse market developments.
    • Duke Energy's common shares are potentially oversold.
  • Google: Why YouTube Needs Ads-Free Premium Subscription
    GOOGL, GOOG Yesterday, 10:06 AM Alcaraz Research 10 Comments

    Summary

    • The advertising-only approach to YouTube is no longer the best long-term option.
    • Google is planning to introduce an advertising-free version of YouTube for a flat monthly fee.
    • Premium subscription might eventually help YouTube become profitable.
    • AdBlock Plus is a big threat to the entire online and mobile advertising industry.
  • Uni-Pixel Finally Completes Its 'Go To Market' Strategy
    UNXL Yesterday, 10:06 AM Paulo Santos 60 Comments

    Summary

    • Uni-Pixel bought the XSense assets from Atmel and licensed the technology.
    • This will enable Uni-Pixel to finally deliver product to the market and register revenues.
    • This article goes into several ramifications of this deal.
  • Apple: LinX Acquisition Addresses A Hardware Risk
    AAPL Yesterday, 9:54 AM WestEnd511 48 Comments

    Summary

    • AAPL's acquisition of LinX address a hardware risk and reaffirms my flattening innovation thesis.
    • The iPhone7 could see the introduction of a duo camera module.
    • Hardware differentiation may be short-lived with Asian component makers catching up. Reiterate bearish view on AAPL.
  • Greenbrier: The Bullish Catalysts For My Favorite Stock For 2015 Are Still In Place
    GBX Yesterday, 9:42 AM Michael Fitzsimmons 6 Comments

    Summary

    • The Greenbrier Companies - a leading rail tank car maker - has consistently beat street EPS estimates over the past few quarters.
    • The company is thought to be reliant on the price of oil and its oil tank car business for success. This is an erroneous thesis.
    • Several positive catalysts remain in place: strong order growth, margin improvement, a strong U.S. dollar, and imminent new tank car safety regulations.
    • My year-end price target for GBX is $85/share (a 35% gain in 8 months).
  • Fortescue's Performance Is Better Than Expected, And Will Continue To Improve
    FSUMF Yesterday, 9:37 AM The Investment Doctor Comment!

    Summary

    • Fortescue announces further cost cutting measures.
    • The company's C1 cost of $18 per wet metric tonne of iron ore in FY 2016 is lower than I expected.
    • This improves and increases the incoming operating cash flows and increases the value of the company.
    • The cash flows should cover all debt repayments in the next three years, but Fortescue will have to refinance a part of the debt due in 2019.
  • How Dr. Strangelove Taught Us To Stop Worrying And Love Amazon
    AMZN Yesterday, 9:31 AM Kevin Donovan 13 Comments

    Summary

    • It's clear the giant is building a doomsday machine.
    • ... So we're gonna get over it.
    • Biggest risk is a bear market, not company's direction.
  • Bellatrix Exploration Trades At Significant Discount To NAV
    BXE Yesterday, 9:22 AM Derrek Oyama 19 Comments

    Summary

    • Bellatrix Exploration owns large inventory of high IRR wells in Spirit River and Cardium resource plays.
    • Completion of deep-cut gas facilities will nearly double processing capacity and expand margins.
    • Cyclical recovery in natural gas and oil prices over next 2-3 years.
    • Activist investor, Orange Capital, owns a 14% stake and has appointed two directors to the Board.
  • Verizon Unbundling Shows Weakness In Phone Model
    VZ Yesterday, 9:13 AM Dana Blankenhorn 16 Comments

    Summary

    • Verizon is putting its FiOS offerings into packages to gain market share.
    • The phone companies can't compete with cable for TV or Internet packages.
    • The best solution is to get rid of the wires.
  • Movado Group - An Opportunity To Acquire At Depressed Levels Thanks To Apple
    MOV Yesterday, 8:50 AM EST Invest Comment!

    Summary

    • Apple Watch has taken an unjustified toll on Movado´s stock price.
    • Apple Watch will not be eating into the revenue as feared by the markets.
    • Movado is cheaply priced based on historical valuations.
    • The stock price possesses a 30+% upside.
  • ModernGraham Quarterly Valuation Of Cigna Corporation
    CI Yesterday, 8:41 AM Benjamin Clark Comment!

    Summary

    • CI is suitable for the Enterprising Investor following the ModernGraham approach.
    • According to the ModernGraham valuation model, the company is fairly valued at the present time.
    • The market is implying a 6.61% earnings growth over the next 7-10 years, which is in line with the rate the company has seen in recent years.
  • Johnson Controls: A Buy As Transformation Hits A Turning Point
    JCI Yesterday, 8:36 AM Willow Street Investments 2 Comments

    Summary

    • The company’s announced sale of its Global WorkPlace Solutions business continues its strategy of focusing on higher margin business lines with sales growth potential.
    • The company’s announced spinoff of its automotive interiors business into a joint venture will also allow it to unload another low margin business.
    • The company’s latest transactions to move away from low margin businesses and focus on higher margin businesses are likely the last near-term transformational actions it will take.
    • A potential investor should consider the company’s shares before its transformational strategy begins to show increased profitability.
    • The company’s yearly dividend increases and substantial share repurchases will reward shareholders while waiting for the business transformation to lift profitability.
  • Green Dot Gets The Green Light Despite Backwater Bonus Plan
    GDOT Yesterday, 8:34 AM SD Davis 1 Comment

    Summary

    • Green Dot's bonus plan can profit executive management without benefiting investors.
    • Operating expenses have been the major hindrance to better earnings performance from Green Dot.
    • Green Dot has an entrenched competitive position that is likely to do well in the prepaid card space in the future.
    • Green Dot's cash generation trends could be very positive for investors going forward.
  • LTE Penetration And Restricted Competition Should Benefit SK Telecom
    SKM Yesterday, 8:18 AM Stephen Simpson, CFA Comment!

    Summary

    • South Korea's mobile operators continue to test new laws governing subsidies, but compliance with the new rules could lead to a double-digit decline in marketing expenses.
    • Converting more subs to LTE service should support 3-5% ARPU growth, while also supporting expanded margins.
    • SK Telecom looks about 10% undervalued today, as the market still has some doubts as to whether ARPU growth and operating leverage will materialize as expected.
  • The Long Case For H&R Block
    HRB Yesterday, 7:57 AM Michael Waldron 3 Comments

    Summary

    • H&R Block has an efficient business model with unrealized market value.
    • H&R Block has stronger financial metrics than its competitors in the tax services industry indicative of strong growth opportunities.
    • H&R Block will experience increased market share in the near future due to its competitive edge in the digital tax sector, driven by increasingly complex tax laws.