Seeking Alpha
  • The Finish Line Is No Foot Locker
    FL, FINL Today, 4:22 PM Christopher F. Davis Comment!

    Summary

    • Both The Finish Line and Foot Locker operate very similar enterprises but they have varying execution.
    • A review of the both company's recent performance and outlook give some color to the differences between the two companies.
    • Why own second best?
  • InsiderInsights.com Daily Round Up 3/27/15: COCP, GPRO, SJW, AGCO
    AGCO, ALCO, ARMK Today, 1:55 PM InsiderInsights Comment!

    Summary

    • Tables of the top insider purchases and sales filed with the SEC on 3/27/15, 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.
  • Intel And Qualcomm: A Regression Analysis Of Dividend Growth And Stock Price
    INTC, QCOM Today, 1:47 PM Michael Grogan 1 Comment

    Summary

    • Qualcomm's (QCOM) share price has historically been more responsive to dividends than that of Intel.
    • Qualcomm may appeal more to income-oriented investors in this regard.
    • However, with Intel's (INTC) growth far outpacing that of Qualcomm in the past year, growth-oriented investors are likely to find more favour in this stock.
  • DreamWorks Animation And Warner Brothers See Big Weekend Box Office Success With 'Home' And 'Get Hard'
    DWA, TWX Today, 1:25 PM The Entertainment Oracle Comment!

    Summary

    • DreamWorks Animation finally saw a big hit with the debut of "Home" which beat all expectations and topped the box office with over $50 million.
    • "Home" is DreamWorks’s lone 2015 release after changing its strategy to make up for past misfires.
    • Warner Brothers’ "Get Hard" also opened big and helped realign the studio’s direction following a massive miss and two breakevens.
    • Warner Brothers will again double-down on summer with a large slate of films, but enters the season in a better position than it did last year.
  • New Apple TV? Ask Why, Not When
    Editors' Pick AAPL Today, 1:14 PM Steven Isakson 12 Comments

    Summary

    • Following Apple's promise of new products and the HBO Now announcement, there have been an increasing number of predictions for new Apple TV hardware.
    • After studying Apple's product history and digital video trends, there are few reasons for new Apple TV hardware anytime soon. Lack of new hardware should not matter to investors.
    • The growth of Ultra HD content and DRM will necessitate new hardware. There are also opportunities for a new model or a completely new product.
  • Busting The Myth Of Grid Parity: The Residential Solar PPA/Lease Death Spiral
    Editors' Pick FSLR, HD, LOW Today, 12:58 PM Casual Analyst 8 Comments

    Summary

    • The grid parity talk coming from the solar industry and analyst community is especially misguided in the context of residential solar.
    • We do not believe residential PPA/Lease instruments will reach grid parity well into the next decade.
    • The talk about utility death spiral is misguided - what is about to die is the lease/PPA business model.
  • Is The Boeing 787-9 Really Going To Help Air France-KLM? (Part 1)
    BA Today, 10:52 AM Dhierin Bechai 2 Comments

    Summary

    • Boeing 787-9 should aid Air France-KLM in achieving higher load factors.
    • At higher fuel prices the fuel savings offset the higher lease rate.
    • At lower fuel prices the higher lease rates are not offset by lower fuel costs.
  • SanDisk Will Be Just Fine
    SNDK Today, 10:50 AM Orange Peel Investments 2 Comments

    Summary

    • SanDisk has been hammered over the last week on reduced revenue guidance.
    • Solid state drives and removable storage are under pressure as mobile phone sales saturate and move users move to the cloud..
    • SanDisk will be just fine - SSD is phasing out HDD and the company is still growing, just not as quickly as it once was.
  • Rooftop Solar Industry Dynamics
    SCTY, VSLR Today, 10:47 AM Simple Investment Ideas 2 Comments

    Summary

    • A debate concerning the merits of the large rooftop solar company business model has intensified over the past year.
    • While both large and small/local rooftop solar companies have their own respective advantages, large rooftop solar companies seem to have the overall competitive edge.
    • Market reality seems to support the hypothesis that large rooftop solar companies have an overall advantage, with industry data showing the increasing dominance of large rooftop solar companies.
  • First Solar: Increasing Downstream Commitment
    FSLR Today, 10:45 AM Simple Investment Ideas 1 Comment

    Summary

    • First Solar has long been a standout in the large-scale downstream solar arena, and is focusing increasing attention on its solar power plant operations and maintenance service.
    • First Solar's commitment to the large-scale downstream service segment makes it well-positioned moving forward, especially given the increasing soft costs of solar.
    • Although the changing solar landscape may pose some problems for First Solar's utility-scale focused business, the company has proven itself more than capable of adapting.
  • Dollar General Vs. Dollar Tree: Which Gives Investors More Bang For Their Buck?
    DG Today, 10:04 AM Daniel Jones 1 Comment

    Summary

    • In recent years, both Dollar General and Dollar Tree have grown considerably, with the latter's purchase of Family Dollar set to make the market more competitive.
    • Despite this catalyst for Dollar Tree, the performance of Dollar General has been more impressive lately and it appears to be the better company overall.
    • While shares of Dollar General aren't cheap, they are considerably cheaper than Dollar Tree's, which is another major benefit for investors who want in on the action.
  • KB Home Has A Lot To Offer Prospective Investors
    KBH Today, 8:54 AM Daniel Jones Comment!

    Summary

    • As the U.S. economy has improved in recent years, one of the biggest beneficiaries has been KB Home, one of the largest homebuilders in the U.S.
    • On top of seeing strong sales and profit growth, investors also enjoy a large and continually growing backlog that indicates the future is bright.
    • While shares aren't cheap on a P/E basis, they do look cheap on a book value basis when placed next to the company's larger rivals, which suggests meaningful potential upside.
  • Comparing America's Next 3 Accident And Health Insurance Companies
    CNO, PRA, SFG Today, 7:58 AM Joseph Cafariello Comment!

    Summary

    • The Accident & Health Insurance industry is expected to underperform the S&P broader market substantially this and next quarters, underperform moderately next year, then outperform modestly beyond.
    • Mean/high targets for the next 3 U.S. Accident & Health Insurance companies – CNO Financial Group, StanCorp Financial Group, and ProAssurance Corporation - range from 2% below to 24% above current prices.
    • Find out which one among CNO, SFG and PRA offers the best stock performance and investment value.
  • Why Xilinx Is A Great Value Stock
    XLNX Today, 7:27 AM I Know First Research 3 Comments

    Summary

    • Xilinx’s stock price has fallen over the last year because of stagnant revenue growth, largely due to unforeseen headwinds.
    • The company’s product offerings and financial health are incredibly strong, however, and revenue growth should begin by 2017 at the latest.
    • Management has emphasized the company’s priority of returning value to shareholders, and recently increased the dividend for the 10th straight year.
    • We believe that now is a perfect time to buy shares in the semiconductor company.
  • Paragon Offshore: Looking At Both Sides
    PGN Today, 5:55 AM The Defensive Investor 4 Comments

    Summary

    • Paragon Offshore is an offshore oil services company with the appearance of a Graham stock. It is trading at extremely low multiples of cash flow, earnings and book value.
    • However, given the chaos in the oil sector, the market seems to be pricing Paragon for a likely bankruptcy.
    • Is the market right or is Paragon a compelling opportunity?
  • DSW: Favorable Industry Tailwinds, Rich Valuation
    DSW Today, 5:44 AM Lester Goh Comment!

    Summary

    • Positive outlook on the global footwear market will push revenues to greater heights.
    • Focus on e-commerce is likely to yield long-term benefits.
    • New store expansion will drive top-line performance.
    • Margin expansion is unlikely.
    • DCF indicates DSW Inc is fairly valued at current trading prices.
  • Gap Remains An Attractive Stock With Solid Growth Potential And Record Of Rewarding Investors
    GPS Today, 5:08 AM AH Research Comment!

    Summary

    • GPS has strong growth potential with support of expanding footprint in growing Chinese market along with domestic market.
    • Company set to earn top-line improvement with growing fashion categories to support Old Navy and fresh product rollover under Banana Republic.
    • GPS trying to revive underperforming brand with experienced management team.
  • Paychex: Q3 2015 Earnings Review, Out-Performance Should Continue
    PAYX Today, 5:01 AM Lester Goh 5 Comments

    Summary

    • Paychex recently posted its Q3 2015 operating results.
    • Payroll revenues grew at low single-digit growth rates, as expected.
    • HR revenues grew at double-digit growth rates, as expected.
    • Margin expansion still likely.
    • Outlook remains bullish, updated projections.
  • Dow Chemical: A Buy As Transformation Accelerates
    DOW Today, 4:58 AM Willow Street Investments 4 Comments

    Summary

    • The company entered into an agreement with Olin Corporation to separate the majority of its chlorine business by spinning the business off into a joint venture.
    • The company's spinoff of the majority of their chlorine business will cut its exposure to the low-margin chlorine business.
    • The company’s most recent divestiture is seen as credit positive as the transaction will allow debt reduction, improve financial flexibility and fund share repurchases.
    • Recent substantial purchases by DOW insiders also indicate that the shares represent value at the current price.
    • A substantial dividend yield will reward shareholders while waiting for the company's transformation to increase margins and profitability.
  • ClearOne Is Relatively Unknown But Very Sound
    CLRO Today, 4:43 AM Sergio Heiber 5 Comments

    Summary

    • Solid Stock Price Performance.
    • Solid Growth is EPS and Revenue.
    • Selling at Cheap Valuation.
    • CLRO Established and Increased its Dividend.
    • Demand for Video Conferencing is Being Fueled by the BYOD Trend.
  • Microsoft: Cheap Windows Hybrid Tablets/Notebooks Can Equalize The Threat Of Chromebooks
    MSFT Today, 4:39 AM Alcaraz Research 17 Comments

    Summary

    • Affordable games-capable Windows 8.1 tablet/notebooks can equalize the threat of Chromebooks.
    • The Cherry Mobile Alpha Morph is a much cheaper version of the Asus Transformer 2-n-1 Windows 8 laptop.
    • Successful local brands are good allies for Microsoft's freemium approach to mobile.
  • Cognex Corporation - Leading The Machine Vision Sector
    CGNX Today, 4:28 AM Sergio Heiber Comment!

    Summary

    • CGNX is the market leader in a strong industry.
    • Demand for machine vision products is from diversified sources.
    • CGNX has record revenues, record earnings, and high margin products.
    • CGNX has no debt, plenty of cash and may institute a dividend.
  • Adaptive Medias: Taking Momentum Into 2015
    ADTM Today, 4:20 AM Dallas Salazar 1 Comment

    Summary

    • ADTM had a really successful 2014 that I believe should allow the company to continue to grow quickly into 2015.
    • Yes cash and a recent Goodwill impairment are issues but management did a good job to address these on the Q4 CC.
    • I have no liquidity concerns for ADTM as it has a history of being able to raise funds and a confident investor base.
    • Look for ADTM to execute a private placement over the next 30 calendar days or so.
    • I continue to be long ADTM.
  • Healthy Earnings Growth Expectations Secure A Bullish Thesis For Dollar General
    DG Today, 4:16 AM Equity Watch 2 Comments

    Summary

    • Ongoing store expansion plan and efforts to fit in competitive environment through low-priced products will fuel company’s future sales and earnings growth momentum.
    • Improvement in inventory shrink levels will help DG’s margins grow at better pace.
    • DG’s shareholders will continue to enjoy hefty cash returns.
    • Analysts anticipating healthy five-year earnings growth rate of 13.40% for company.
  • Week In Review: Zai Lab To Develop BMS' Liver Cancer Drug In China
    WX, BMY, CCM Today, 4:08 AM ChinaBio Today Comment!
  • Insider Weekends - March 27, 2015
    PN, FI, PHII Today, 2:46 AM Asif Suria 1 Comment

    Summary

    • Cluster of insider purchases in the oil services sector despite general weakness in insider buying.
    • Notable insider buys this week: PN, FI, PHII, OPK, SJW.
    • Notable insider sales this week: ROST, MMI, JAZZ, FEYE, SLG.
  • Why Travelers Will Outperform: Value, Momentum, And Industry Tailwinds
    TRV Today, 1:24 AM Quantified Alpha 6 Comments

    Summary

    • On almost every measure of value, Travelers looks extremely cheap relative to the market. Over the long run, cheap stocks beat expensive stocks.
    • The market has recently picked up on Travelers, leading to strong outperformance from the stock over the last twelve months.
    • Travelers is in the process of a very large share repurchase plan, which should be a catalyst for further growth and a limit on downside movements.
    • Interest rate normalization is expected to come in September, which is likely to hurt Travelers in the short term but help them in the long run.
  • The Philosopher Series, Part XVII: What Would Plato Invest In Today?
    FB, XOM, TWTR Today, 1:00 AM Get Rich Brothers 4 Comments

    Summary

    • Plato is widely regarded as the greatest philosopher of all time.
    • I have chosen three companies he would invest in.
    • Plato believed through education, people are able to move past a world of shadows and see the world as it truly is.
  • Altera: The Intel Buyout
    ALTR Today, 12:52 AM Lester Goh 4 Comments

    Summary

    • News broke this week that Intel is considering buying Altera.
    • Intel has historically been highly dependent on the PC market, which continues its slow decline - acquiring Altera could allow it to gain access to high-growth markets.
    • Altera would be able to gain further access to Intel's manufacturing processes.
    • Altera seems to be a better bargaining position, which could warrant a substantial premium to its current trading price.
  • The Big 5 Canadian Banks: What's The Difference?
    BMO, BNS, CM Today, 12:13 AM Get Rich Brothers 11 Comments

    Summary

    • The Big Five Canadian Banks are often grouped as one entity.
    • Each of the banks have their own specialties.
    • We will examine what makes each bank unique.
  • Why Pioneer Natural Resources' Turnaround Should Continue
    PXD Yesterday, 9:02 PM Harsh Singh Chauhan 4 Comments

    Summary

    • Pioneer Natural Resources has made a comeback this year, and since oil prices are expected to improve gradually as per various sources, the momentum should continue.
    • Pioneer's aggressive cost-cutting measures, such as usage of effluent water and investments in front-end loaded infrastructure, will allow the company to improve its margin performance.
    • Pioneer is making a smart move by investing in wells with high estimated ultimate recovery rates.
  • Marathon Oil: Presence In 3 Economical Shale Plays And Crude's Expected Recovery To Drive Results
    MRO Yesterday, 8:37 PM Harsh Singh Chauhan 5 Comments

    Summary

    • Marathon Oil has lost a lot of value in the past year, but despite the weakness in crude oil pricing, its earnings have improved.
    • The company has improved its margin performance due to its presence in the Eagle Ford and Bakken shale plays, where production is break-even at $30 a barrel.
    • Marathon has been reducing its well costs aggressively, and this will augment its bottom-line performance going forward.
  • BlackBerry: No Major Surprises But Turnaround Will Take Time
    BBRY Yesterday, 8:24 PM Michael Blair 101 Comments

    Summary

    • BlackBerry reported a modest profit for Q4.
    • Software sales continue to grow at double digits.
    • Devices making a positive contribution despite low unit sales.
    • Stock seems fully valued but in my view a speculative buy.
  • Why Take An Unnecessary Risk On Freeport-McMoRan?
    FCX Yesterday, 7:58 PM Individual Trader 17 Comments

    Summary

    • Freeport-McMoRan has very high debt. A period of low commodity prices and interest rate hikes would put pressure on this company's financing.
    • Copper performed miserably in the financial crisis of 2008. 60% of FCX's revenues are derived from copper.
    • Big mining companies need to continually raise the bar in order (through production) to keep the share price elevated. The share price is where it is because production is down.
  • Yingli Green Energy: Down, But Not Out
    YGE Yesterday, 5:50 PM Anup Singh 5 Comments

    Summary

    • Yingli Green Energy's performance has not been as good as its peers since it is facing pricing pressure due to entry into new markets.
    • Yingli, however, is witnessing rapid shipment growth in key markets such as Japan and China along with other emerging markets where solar growth is expected to remain strong.
    • Yingli's debt is very high and its financial position is not good.
    • However, Yingli's bottom line is slated to grow at a fast pace in the next two years, so the company can get better going forward.
  • Rite Aid Is Likely To Be Acquired, Just Not By Kroger
    RAD Yesterday, 5:34 PM Brian Nichols 28 Comments

    Summary

    • I previously presented two different companies that could, maybe even likely, acquire RAD.
    • In that analysis, KR was seen as a popular alternative to acquire RAD.
    • In looking at KR as a business, buying RAD is unlikely, but that doesn't mean that both aren't still a great investment.
  • Why Capstone Turbine's Weakness Looks Like An Opportunity In Disguise
    CPST Yesterday, 5:20 PM Amal Singh 16 Comments

    Summary

    • A rebound in crude oil pricing will trigger oil and gas projects, and lead to an increase in the need for Capstone Turbine's products.
    • Shale oil growth in North America will aid Capstone's growth, as the company ships more than half of its products to the continent.
    • Capstone is gradually improving its gross margin despite a difficult crude oil pricing environment, and its bottom line is expected to grow rapidly in the next five years.
  • AMD: Downgraded For Good Reason, Should You Act?
    AMD Yesterday, 5:15 PM Sean Chandler 27 Comments

    Summary

    • On Wednesday, UBS Group downgraded AMD to $2.40, pushing the stock’s poor performance down by another 5.7%.
    • The same reason which has hurt AMD’s business over the last few years continues to plague it: declining PC sales.
    • Is there a glimmer of hope for this risky business?
  • Why Apple's Slow Response To Disruptive Streaming Music Market Matters
    AAPL Yesterday, 5:09 PM Gary Bourgeault 55 Comments

    Summary

    • Apple is once again slow to respond to a market it competes in.
    • The company appears to be falling behind as a market leader in streaming TV and music.
    • This won't matter in the short term, but over time it could cause problems from slower sales of its physical products.
  • Why Ulta Salon Remains The Finest Pick In The Cosmetics Space
    ULTA Yesterday, 4:44 PM Brian Wu 1 Comment

    Summary

    • Ulta Salon has emerged as the fastest-growing company in the cosmetic space.
    • This is partly due to the company’s lower susceptibility to online commerce.
    • The shares remain a good long-term investment despite their sky-high valuation.
  • Favorable Shale Oil Economics And Oil Market Dynamics Make Abraxas Petroleum A Buy
    AXAS Yesterday, 4:39 PM Amal Singh 7 Comments

    Summary

    • Abraxas Petroleum has outperformed the broader market despite weakness in crude oil pricing, and the trend looks set to continue due to its low-cost assets.
    • Abraxas' margins should continue improving since production in the Bakken is profitable even at $42 per barrel.
    • Crude oil prices are expected to improve on the back of an anticipated growth in demand and global economic growth.
    • Abraxas' earnings growth is slated to outperform the broader market in the next five years.
  • GoDaddy Racing To An IPO
    GDDY Yesterday, 4:29 PM Don Dion 8 Comments

    Summary

    • GDDY expects to raise $480,700,000 in its upcoming IPO, set for the week of 3.30.2015.
    • Lead Underwriters: Citigroup Global Markets, JPMorgan Securities and Morgan Stanley & Co.
    • Net losses persist, but revenues are strong and growing steadily. GDDY is a dominant player in its field.
    • We suggest investors consider buying in.
  • Housing Is A Good Bet In The Second Quarter
    TPH, UCP Yesterday, 3:37 PM Bret Jensen 1 Comment

    Summary

    • Much of the nation is emerging from a cold winter especially the Northeast where cities like Boston got record snowfall.
    • Despite this, new home sales are showing surprising robustness with sales above 500K two months in a row for the first time since 2008.
    • With a strong jobs market, rising consumer confidence and still near historical low mortgage rates; this could be the year housing activity finally picks up.
    • A strong spring selling season could buoy the fortunes of the homebuilding stocks. Here are two I like here.
  • Salesforce Makes Political, But Not Yet Economic, Statement Over Indiana
    CRM Yesterday, 3:35 PM Dana Blankenhorn 7 Comments

    Summary

    • Salesforce has cancelled a sales conference in Indiana and is threatening to do more.
    • The company bought ExactTarget for $2.5 billion less than two years ago and has over 2,000 employees there.
    • The danger of mixing business and politics.
  • SeaDrill: Plan Playing Out Provides Major Long-Term Catalyst
    SDRL Yesterday, 3:22 PM Stone Fox Capital 53 Comments

    Summary

    • Competitors scrapping rigs continues playing out as expected.
    • SeaDrill remains best positioned for a rebound in oil.
    • The stock remains extremely cheap with the potential for a major catalyst, if the deepwater demand rebounds as originally forecasted.
  • The Short Pain For Allana Potash Shareholders
    ALLRF, ICL Yesterday, 1:30 PM The Investment Doctor 12 Comments

    Summary

    • Israel Chemicals makes an offer to acquire all shares of Allana Potash at a 40% premium.
    • As it didn't look like Allana was able to secure construction financing anytime soon, this might be the best way out for Allana shareholders.
    • I will either sell on the open market or tender my shares to Israel Chemicals and reinvest the cash elsewhere.
  • Why Waste Management Can Break Beyond Its 52-Week High
    WM Yesterday, 1:10 PM Renu Singh 6 Comments

    Summary

    • Waste Management is undertaking steps to improve its margin performance by charging for recycling glass.
    • Waste Management's cash flow position is weak, but it should improve on the back of divestment of its non-core operations.
    • Waste Management is investing in its core business, which will lead to a better EBITDA performance going forward.
    • Despite beating the broader market in the past year, Waste Management is still way cheaper than the industry average.
  • Dreamworks Animation Prepares For Box Office Hiatus But First Invites Audiences To Go 'Home'
    DWA Yesterday, 12:41 PM The Entertainment Oracle 2 Comments

    Summary

    • Dreamworks Animation will release ‘Home’ this weekend… its only film in 2015.
    • Dreamworks Animation’s last real hit was ‘The Croods’ which opened around this time in 2013. Since then the studio’s had a rough patch of largely unprofitable films.
    • ‘Home’ is predicted to earn around $30 million to $35 million, which while a nice opening for a normal film wouldn’t do a lot to help cover the film’s costs.
  • What Sohu's Valuation Of Sogou Means For Qihoo 360 And Baidu
    SOHU Yesterday, 12:37 PM Justin Giles Comment!

    Summary

    • Reports have surfaced that Sohu.com is planning to spin off Sogou, with an IPO coming in the second half of this year.
    • Sohu.com is looking for a valuation in the $3B range for Sogou.
    • What this means for the competitors in Qihoo 360 and Baidu.
    • How to play and benefit from Sogou's IPO attention.
  • Dollar Tree And Family Dollar: It's Best To Buy, Hold, Then Forget
    DLTR, FDO Yesterday, 12:33 PM Brian Nichols 4 Comments

    Summary

    • DLTR's business model alone is unsustainable.
    • FDO is a game changer, allowing DLTR to put its best-in-class management and infrastructure to work on a broken business.
    • While DLTR's stock has soared 50% the last year, the structure of its deal for FDO makes the stock attractively valued for a good entry point.