Seeking Alpha
  • Walter Energy: Dramatic Price Decline Appears Overdone
    Editors' Pick WLT Today, 8:27 AM Elephant Analytics 1 Comment

    Summary

    • Walter Energy still has a huge debt burden to deal with and the weakening Australian dollar may slightly slow necessary supply cuts.
    • Liquidity remains strong enough to last until 2016 at current prices though.
    • A gradual metallurgical coal market recovery in line with consensus forecasts should be enough for Walter Energy to maintain at least a minimum level of liquidity.
    • The dramatic decrease in share price appears overdone given the amount of runway remaining and the likelihood that supply cuts will at least modestly improve 2015 met coal prices.
  • Biglari Holdings: An Attractive Entry Point
    Editors' Pick BH Sat, Sep. 20, 6:51 PM Matt See 11 Comments

    Summary

    • Stable, FCF generating operating business with future growth ahead.
    • Large equity and cash holdings create a net cash position.
    • Misunderstood share count and rights offering.
    • Sum of the parts indicates undervaluation.
  • Universal Display, Apple And The Future Of Displays
    Editors' Pick OLED Sat, Sep. 20, 12:09 PM Esekla 23 Comments

    Summary

    • This morning's news, including iPhone tear-downs, makes it clear that Apple, and the display industry at large, is at the beginning of a transition to AMOLED screens.
    • Universal Display is the primary beneficiary of this trend.
    • The next big AMOLED producer and impact on other stocks as the industry develops are also discussed.
  • Rentrak: A Subscription-Based Secular Grower Transforming Media Ad Buying
    Editors' Pick RENT Sat, Sep. 20, 11:05 AM Long Short 1 Comment

    Summary

    • A recent Russell 2000-driven sell-off yields attractive opportunity with 60% upside.
    • Revenue growth to accelerate to +50% CAGR over next 3 years, with significant operating margin expansion.
    • A subscription-based business with significant pricing power and >90% renewal rates.
    • Secular growth driven by programmatic ad buying and fragmentation of TV-viewing.
  • Marchex Post-Mortem Update
    Editors' Pick MCHX Sat, Sep. 20, 10:50 AM Ariana Research 3 Comments

    Summary

    • The short thesis has played out at Marchex, with the equity declining ~66% since July.
    • Re-cut of the Allstate pricing has served as the catalyst, supporting the notion that Marchex's offerings are non-differentiated.
    • Marchex price action reflects the perils of investing in businesses with significant customer and vendor concentration.
  • China Dongxiang: A Very Cheap Way To Buy Alibaba
    Editors' Pick CDGXF Fri, Sep. 19, 4:51 PM Wilson Wang 26 Comments

    Summary

    • Sum of the parts suggest a 30% upside.
    • China Dongxiang owns 0.31% of Alibaba through Yunfeng e-Commerce Fund.
    • Immediate Catalyst - Alibaba IPO.
  • Kennady Diamonds: Big Potential At Kennady North
    Editors' Pick KDIAF Fri, Sep. 19, 4:08 PM Christopher De Sousa 4 Comments

    Summary

    • Kennady Diamonds plans to establish a mineral resource between 7 to 10 million tonnes with a grade over 2 carats per tonne.
    • Diamond market dynamics favors Kennady Diamonds' financial outlook longer term.
    • The company expects to release the preliminary NI 43-101 resource estimate by year-end.
  • DTS Inc. Will Add A Quarter To Your Money
    Editors' Pick DTSI Fri, Sep. 19, 3:10 PM Soid Ahmad 6 Comments

    Summary

    • Audio devices and audio enhancement markets are set to grow due to proliferation of portable devices and adoption of wireless audio.
    • DTS Inc., an audio technology company, will materialize on this growth because of its leading market share, superior technology, strong partner relations and current innovations like PLAY-FI.
    • Though DTS is small-cap, liquidity and financial risk is low. Combine this with cheap forward PE, and you got yourself a small-cap treat.
    • Valuations based on PE metrics and cash flows reveal potential upside of 25%. DTS Inc. is certainly a buy.
  • Coach May Have 40% Upside, Provided Near-Term Execution Goes Smoothly
    Editors' Pick COH Fri, Sep. 19, 11:41 AM Lester Goh 4 Comments

    Summary

    • Coach, similarly to its competitors, has been struggling recently due to sluggish North American climate.
    • Poor sales performance and contracting profitability margins are a concern.
    • The company has announced plans to enter the "lifestyle" market, instead of purely focusing on luxury.
    • Huge upside potential, provided execution of said transformation goes according to plan.
  • Why The Graphite Sector Is Heating Up, How To Evaluate Opportunities, And What I Own
    Editors' Pick GLKIF Fri, Sep. 19, 8:22 AM Point Of Return 7 Comments

    Summary

    • During the graphite boom in 2012, investors experienced a huge run-up in graphite stocks, only to be let down as their performance drastically outpaced their fundamentals.
    • There is now an opportunity for contrarian investors to re-evaluate the sector given recent events: the stabilization of prices; projects starting-up or near production; and off-take agreements being signed.
    • Blue-sky potential remains enormous from the incremental demand that will be created by ‘technology grade graphite’ to be used in emerging green initiatives and clean technology.
    • Supply and demand trends are extremely encouraging, spurred largely by resource nationalism, industry consolidation, and Tesla's gigafactory which alone is supposed to at least double worldwide graphite demand by 2020.
    • The NIA graphite explorers index is up ~70% YTD, posting most of those gains quietly this summer, and primarily by advanced projects which are still a ways off their all-time.
  • REA Group: Australia's No. 1 Property Search Website With Exceptional Earnings Growth And Classic Economic 'Moats'
    Editors' Pick RPGRF Fri, Sep. 19, 7:40 AM LN Investors Comment!

    Summary

    • REA Group operates the #1 property search website in Australia.
    • It has a strong brand and a durable competitive advantage.
    • It has considerable pricing power for subscriptions and services, and is used by a majority of real estate agencies as their primary way of listing properties for sale and rent.
  • Linn Energy: Why The Asset Swap With ExxonMobil Makes A Lot Of Sense
    Editors' Pick LINE Fri, Sep. 19, 7:09 AM Achilles Research 41 Comments

    Summary

    • Linn Energy just announced another asset swap with ExxonMobil.
    • ExxonMobil will receive 17,000 acres in the Midland basin, and Linn Energy will get its hands on ExxonMobil's interests in California's South Belridge Field.
    • The asset swap will support Linn Energy's portfolio transformation and the shift toward mature, low-decline assets.
    • Received assets will have a decline rate of 10% and an approximate reserve life of 22 years.
  • Cinedigm: Significant Upside With Secular Tailwinds
    PRO Top Idea CIDM Fri, Sep. 19, 5:00 AM Sabra Capital Partners 17 Comments

    Summary

    • With a stable base of risk-less assets providing a floor at $1.55 per share, downside is limited.
    • Cinedigm’s earnings profile will ramp up substantially in the coming quarters as its growing library and distribution agreements start to pay off.
    • Cinedigm's OTT opportunity represents the greatest upside lever with the potential to double the company’s value and beyond.
    • We expect the equity to ultimately trade closer to its sum of parts valuation at ~$5.50 per share.
  • Hawaiian Airlines: More Upside Ahead
    Editors' Pick HA Thu, Sep. 18, 3:37 PM Stone Fox Capital 3 Comments

    Summary

    • After solid gains, Hawaiian Airlines remains a long-term buy.
    • The airline trades at industry-low multiples of both PS and PE.
    • The stock has 33% upside to catch up to the low-end airline multiples.
  • Sportsman's Warehouse Of Cards To Come Tumbling Down In Q3 And Q4
    Editors' Pick SPWH Thu, Sep. 18, 1:04 PM Dallas Salazar Comment!

    Summary

    • SPWH should see a continued reduction of top-line, as its inventory fails to move during Q3 and Q4 as a result of pricing and new competition pressure.
    • If SPWH is unable to move its inventory, and its inventory is reduced in value, that would greatly reduce total liquidity at the company.
    • Even at current inventory valuations, SPWH has funding gaps starting in an estimated 6-9 months at stated CAPEX and growth strategies.
  • GoPro: 5 Factors To Push It Lower
    Editors' Pick GPRO Thu, Sep. 18, 12:59 PM Christopher Wallace 20 Comments

    Summary

    • Stock price infers valuation metrics that are impossibly high.
    • Priced for perfection but has increasing competition.
    • Is merely a camera company but treated like a media company.
    • Showing classic bubble stock trading characteristics.
    • Lock-up stock coming due will increase the float 5 times.
  • Changing My View On Zulily
    Editors' Pick ZU Thu, Sep. 18, 12:38 PM ONeil Trader 4 Comments

    Summary

    • Zulily has performed poorly in the last five months, which was in line with my prior expectations.
    • Revenue is growing ahead of estimates as the company benefits from rising demand.
    • Short-term margin pressure kept the stock down since the Q2 report.
    • Looking at the potential valuation and upside in the next six to twelve months.
  • Continental Resources: The Big Promise Of The Anadarko Basin
    Editors' Pick CLR Thu, Sep. 18, 11:33 AM Richard Zeits 47 Comments

    Summary

    • Continental substantially increased resource estimates for its Anadarko Basin asset.
    • The announcement of the Springer Shale discovery is important, given that the play will add to the “core of the core” drilling inventory.
    • The positive read-across is to Newfield, Cimarex, Marathon and Devon.
  • HCI Group: The Wizards Of Tampa, Part II
    Editors' Pick HCI Thu, Sep. 18, 9:07 AM RH Analytics 2 Comments

    Summary

    • In the second piece in a multi-part series on the HCI group we focus on financial analysis.
    • State subsidies embedded in takeouts can be substantial. However, the impact is temporary and eventually the economics of the underlying policies emerge.
    • Our analysis shows that HIC's business model is only marginally profitable absent assumptions, even in the current 'best of times' business environment for DFIs.
    • Expense analysis indicates that a large portion of the subsidies go out the door in the form of management compensation, rather than being retained to build the surplus.
    • Without a transaction to fortify financial results, going forward we expect policy erosion, price declines and negative operating leverage to drive the ROE down to single digits.
  • REX: Overreaction To Brazilian Tax Credit News Bares At Least 26% Upside
    Editors' Pick REX Thu, Sep. 18, 8:35 AM George Wan 12 Comments

    Summary

    • Recent news of a Brazilian tax credit for ethanol exporters sent ethanol stocks tumbling, with REX down almost 20%.
    • Considering the back-story of this tax credit, I believe the move is more of a political tool than a long-term national strategy.
    • REX owns stakes in large plants in the Corn Belt and should be minimally affected by this news.
    • Even with a very conservative fundamentals valuation, REX has a 32% upside at current levels by year end.
  • The New Bill Barrett: Smaller, More Focused, Asset-Rich, Well Capitalized - Waiting On Strong Execution
    Editors' Pick BBG Thu, Sep. 18, 6:00 AM Richard Zeits 3 Comments

    Summary

    • The divestitures announced by Bill Barrett today complete the company’s strategic repositioning and highlight intrinsic value.
    • The company’s pro forma trading multiples are moderate given the growth potential and high-return core assets.
    • Operating execution will be key for the stock to realize its potentially significant upside.
  • Symmetry Medical: Surgical Maneuver Sets Up A Very Attractive Asymmetric Trade
    PRO Top Idea SMA Thu, Sep. 18, 5:00 AM Eight Diamonds Advisors 3 Comments

    Summary

    • In August 2014, Symmetry Medical announced that it had agreed to sell its OEM Solutions business for cash and, simultaneously, spin-off its Symmetry Surgical business.
    • Its muted share price reaction enables investors to speculate cheaply that a higher OEM Solutions bid may emerge, whilst buying into Symmetry Surgical at a very attractive price pre-separation.
    • Symmetry Surgical has been negatively impacted by a number of acquisition integration issues. Yet, it remains a high margin business capable of generating impressive cash flows.
    • Symmetry Medical’s share price implies that Symmetry Surgical is being valued at a significant discount to listed comparables. We estimate there is 70%+ upside potential for Symmetry Surgical.
    • This is an 18-month trade with strong catalysts. The low OEM Solutions deal risk combined with SSRG’s inherit discount limits the downside, presenting a very attractive asymmetric trade.
  • inTest: A Big Winner In A Semiconductor Capital Equipment Upcycle
    PRO Top Idea INTT Thu, Sep. 18, 5:00 AM BuyTheDip SellTheRip 6 Comments

    Summary

    • INTT is a very well-managed company, able to make money and generate cash even in the absence of a strong semiconductor capital spending backdrop.
    • Decreased exposure to semi capital equipment (notoriously a feast or famine industry) lends itself to less volatile sales which goes hand in hand with a better multiple.
    • P&L tightly levered to upturns in the semiconductor industry and the co.’s cost structure is largely fixed: we think this portends to quarterly earnings power of 25-40c (stock at $5.20).
    • The worst-case scenario is a profitable company throwing off cash and creating value by repurchasing stock at depressed valuation (magnifies earnings power when the cycle turns).
    • We think valuation makes our case even more compelling: trades at 10x earnings (ex-cash) and carries a 10% FCF yield. INTT trades at a significant discount to larger, well-covered peers.
  • Solitario Exploration & Royalty: Profitable Gold And Zinc Production Is Coming Soon
    Editors' Pick XPL Thu, Sep. 18, 4:16 AM Hard Asset Investments 1 Comment

    Summary

    • Solitario Exploration & Royalty is advancing the economically sound Mt. Hamilton Gold project in Nevada, which will produce 60,000+ ounces annually at low cash costs.
    • The company also owns a 30% interest in the high-grade Bongara zinc project in Peru, which is joint ventured with a major zinc producer.
    • Solitario currently has a market cap of just $50 million, but its assets could be worth several times that figure as it reaches the production stage.
    • I think Solitario presents a compelling buy at current prices and investors should be adding shares on any future weakness in the share price.
  • Fiat: Preparing To Strike
    Editors' Pick FIATY Wed, Sep. 17, 9:10 PM GreenWood Investors 6 Comments
  • Amerco: Moving Higher
    Editors' Pick UHAL Wed, Sep. 17, 7:47 PM GreenWood Investors 1 Comment
  • Is It Time To Bottom-Fish For Vale SA?
    Editors' Pick VALE Wed, Sep. 17, 7:26 PM Stephen Simpson, CFA 37 Comments

    Summary

    • Iron ore prices have tested the $80 level and led to predictions that iron is dead as an attractive commodity.
    • Vale has very low production costs, high-quality ores in its Northern resource base, and ample expansion potential.
    • Just 5.5 times 12-month EBITDA can support a fair value above $14, but further iron ore price declines and a potential new political regime in Brazil loom as risks.
  • American Realty Investors - Deeply Undervalued Real Estate Company With Significant Upside And Asset Monetization Catalyst
    Editors' Pick ARL, TCI Wed, Sep. 17, 6:30 AM George D'Angelo II 20 Comments
  • Turnaround At Hallmark Financial Services Could Drive 60% Upside
    PRO Top Idea HALL Wed, Sep. 17, 5:00 AM Weighing Machine 6 Comments

    Summary

    • Exit from a troubled loss-making division coupled with continued growth of a highly profitable segment portend large increase in earnings at Hallmark.
    • Insiders own 30%+ of company and have been buying.
    • Company is well capitalized and has ample growth opportunities.
    • Selling at just 75% of book value and less than 6x normalized earnings, shares could appreciate 60% over the next 12-18 months as turnaround becomes evident.
  • The Babcock & Wilcox Company: Massive R&D Obscuring Earnings Power; 80%+ Upside
    PRO Top Idea BWC Wed, Sep. 17, 5:00 AM ValueStreet Research 14 Comments

    Summary

    • BWC is a large manufacturer of utility steam boilers and nuclear components.
    • Large operating losses in one segment are obscuring the true value of the company. Management has shown a willingness to stem these losses.
    • The company has a 150-year operating history, few competitors, a 25% RoE, and a backlog of 2x the market cap.
    • Under conservative revenue growth assumptions, the company has 80% upside with a large margin of safety.
  • 3 Micro-Caps With Persistent Insider Purchases
    Editors' Pick CRDS, FLL, IFT Tue, Sep. 16, 7:47 AM Weighing Machine 6 Comments

    Summary

    • Market capitalization less than $300 million.
    • Insider purchases involving at least 2 different insiders over the past 6 months.
    • Selling at a discount to book value or at less than 12x my estimate of normalized earnings.
  • Currency Exchange International: Compounding Cash Machine At A Deep Discount To Private Market Peers
    PRO Top Idea CURN Tue, Sep. 16, 5:00 AM Ariana Research 12 Comments

    Summary

    • A unique opportunity to own a compounding machine with organic growth in excess of 20% and high returns on capital.
    • OSFI approval to transition into a 'Banker's Bank' is a near-term hard catalyst for value creation.
    • Currency Exchange trades at a steep discount to recent private market transactions. We believe shares at minimum have upside potential of ~70%.
  • HCI Group: The Wizards Of Tampa
    Editors' Pick HCI Tue, Sep. 16, 2:17 AM RH Analytics 4 Comments

    Summary

    • HCI is a Florida P&C insurer with a business model that is the product of the dysfunctional and politically driven Florida homeowners' insurance market.
    • HCI's extraordinarily high ROE is largely driven by state subsidies embedded in the timing and terms of takeouts from Citizens.
    • End of year assumptions in recent years have perpetuated the mirage whereby mispriced and risky takeout policies are transformed into a book of business with industry leading profitability.
    • Absent takeouts or acquisitions, we expect profitability to erode rapidly as it has in a past period without a substantial takeout.
  • MiX Telematics: This Looks Like A Bottom
    Editors' Pick MIXT Mon, Sep. 15, 12:15 PM Darspal S Mann Comment!

    Summary

    • Weak revenue growth, but fundamentally sound and subscriptions growing fast.
    • Operational changes, new products and geographic expansion should bring back revenue visibility and growth.
    • Trading near replacement value, stock may benefit from earnings and multiple improvement as the revenue stabilizes and margins expand.
  • Solazyme: Taking Advantage Of Healthy Food Trends And The Need For Innovation
    Editors' Pick SZYM Mon, Sep. 15, 8:10 AM Kevin Quon 55 Comments

    Summary

    • Solazyme recently gained its first customer for AlgaVia's Whole Algal Flour product.
    • The company offers natural product ingredients and is also able to improve the health profiles of food.
    • Solazyme's technology platform could be a disruptive innovation when it comes to oil profile variety.
  • Skeletons In Plain Sight And Why Nu Skin Is Worth $10/Share
    Editors' Pick NUS Sun, Sep. 14, 1:33 PM Mohan Venigalla 11 Comments

    Summary

    • Various short theses on Nu Skin are synthesized.
    • A closer look at the company's management of cash reveals that the management not only lost focus, but also grossly mismanaged cash.
    • The company entered each of the last four quarters with a negative cash situation for operations during the quarter, which explains the company's recent scramble for cash.
    • Justification for setting NUS stock price target at $10 is presented.
  • AT&T: A Bullish Algorithmic Perspective
    Editors' Pick T Sun, Sep. 14, 11:59 AM I Know First Research 13 Comments

    Summary

    • AT&T, despite being the second-largest wireless telecommunications provider in the U.S., has recently been regarded as a problematic stock, because of high competition in telecommunications and T’s lower-than-estimated revenues.
    • Recent developments – including new mobile plans and phones, network expansion, novel technologies, and increased subscriber counts – make success foreseeable for T, especially when coupled with its steady dividend.
    • While lower revenues, a competitive market, and questionable investments are not going away, T is not the disaster some analysts paint it to be.
    • I Know First algorithm predicts a bullish forecast for T in the 1-month and 3-month time frames.
  • Nuverra Environmental Solutions: No Longer Investing In The Hope
    Editors' Pick NES Sat, Sep. 13, 11:20 AM Stone Fox Capital 13 Comments

    Summary

    • Nuverra Environmental continues to provide investors with hope that never materializes.
    • Large capital spending plan is unfunded.
    • Inability to hit financial targets suggests a large cut to the EBITDA multiple is warranted with downside potential of at least 35%.
    • Better opportunities exist in the oilfield services sector that don't involve high levels of leverage.
  • Allana Potash Continues To Drift Amidst Ag Malaise
    Editors' Pick ALLRF Sat, Sep. 13, 10:46 AM Stephen Simpson, CFA 11 Comments

    Summary

    • Allana shares continue to drift lower, despite a strong and engaged strategic partner in Israel Chemicals.
    • If efforts to increase royalties and taxes on resources produced in Israel stick, Allana's Ethiopian Danakhil project may become even more valuable to ICL.
    • Allana still needs to secure project financing, but these very risky shares look undervalued below $0.80/ADR.
  • AngloGold Ashanti: The Restructuring Plan Could Fail
    Editors' Pick AU Sat, Sep. 13, 8:59 AM Vladimir Zernov 2 Comments

    Summary

    • AngloGold Ashanti plans to split into two companies.
    • One of these companies will own AngloGold Ashanti's South African assets, while another will operate its international assets.
    • AngloGold Ashanti also plans to raise $2.1 billion in equity.
    • This plan will likely meet heavy opposition from shareholders.
  • Asian Growth Sends Strong Bull Message For Apple
    Editors' Pick AAPL Fri, Sep. 12, 11:03 PM Nick Cox 169 Comments

    Summary

    • Apple iPhone increasing market share in Asia.
    • Samsung losing ground to Apple and Xiaomi.
    • Xiaomi gaining ground, but now Apple can fulfill potential faith its large-screen phones.
    • Analysts have failed to grasp the importance of Asia, excluding China and India, which represents a growing population of 1.8 billion people.
  • Triangle Petroleum: Delivering On The Ambitious Growth Strategy
    Editors' Pick TPLM Fri, Sep. 12, 3:20 PM Richard Zeits 8 Comments

    Summary

    • Triangle delivered much stronger than expected fiscal Q2 2015 results in its pressure pumping business.
    • Given the favorable current environment in the pressure pumping sector, Triangle’s growth initiatives in Oil Services are very well timed.
    • Using an updated valuation range for the company’s Oil Service and Midstream segments, the implied valuation for the core E&P business is attractive.
    • However, the company needs to clearly demonstrate its ability to achieve competitive drilling returns in its operated upstream business.
  • Tesla Is Not All Glitter And Glamour
    Editors' Pick TSLA Fri, Sep. 12, 2:11 PM Harm Elderman 100 Comments

    Summary

    • Tesla could reach $1,000 per share if everything goes to plan.
    • However, such scenarios are fundamentally and empirically unlikely.
    • Tesla burns through cash at a pace of 279 MPH.
    • How will Tesla perform when stock markets hit a correction?
  • How And When To Short Tesla
    Editors' Pick TSLA Fri, Sep. 12, 8:45 AM Edward Hoofnagle, CFA 115 Comments

    Summary

    • This round of gapping up seems to have peaked.
    • A window of opportunity is open in the range of 285 - 300.
    • It's a high risk trade, not appropriate for many investors.
  • Prosafe SE: Classic Value Opportunity For Long-Term Investor To Profit From Offshore Fleet Growth
    Editors' Pick PRSEY Fri, Sep. 12, 7:00 AM Stanislav Ermilov 10 Comments

    Summary

    • Operating earnings cushion through long-term contracts with near-record high backlog combined with capex investment program set to increase firm's assets by over 50% in the next 2 years.
    • Selloff on the back of upcoming dividend cut offers opportunity for contrarian investors to profit from outflow of the dividend seeking group.
    • Overreaction to short-term softness in operating environment offers additional value in light of long-term tailwinds for the sector.
  • Priceline: Value And Growth At A Reasonable Price
    Editors' Pick PCLN Fri, Sep. 12, 6:09 AM Investing Doc 5 Comments

    Summary

    • Priceline's shares have started to trend negative on little news-- is this an opportunity or a sign of something more ominous?
    • The company's competitive position, particularly against Expedia and Orbitz, is compelling, and getting stronger with time.
    • The negative price action looks to be an opportunity to get a strong growth story at an excellent value.
  • Spin-Off NOW, Inc: Market Leadership, Experienced Management, And Pristine Balance Sheet Point To Compounding Value
    PRO Top Idea DNOW Fri, Sep. 12, 5:00 AM Value Plus Incentives 21 Comments

    Summary

    • DistributionNOW or NOW, Inc. (DNOW), the recent spin-off from National Oilwell Varco, Inc. (NOV), ranks second by market share in the fragmented but fast consolidating energy distribution market.
    • DNOW’s pristine balance sheet – $236 million in cash, no debt – and low cost of capital should facilitate organic market share gains and rapid growth via M&A activity.
    • In contrast, DNOW’s primary competitor and market leader, MRC Global (MRC), has much higher leverage and now needs to enter a period of de-leveraging, which will likely slow growth.
    • DNOW’s management team has a 10 year, successful track record of accretive M&A. The spin-off is only the most recent in a long series of strategic actions to create value.
    • DNOW’s operating margins are likely to inflect significantly higher after digesting two large acquisitions and transitioning to a global ERP system.
  • Glu Mobile: Laying Out A Valuation Based On Revenue And Earnings
    Editors' Pick GLUU Thu, Sep. 11, 5:32 PM MTF Investing 27 Comments

    Summary

    • Glu Mobile is a high growth stock that has its value rise 150% over the past 12 months.
    • While past performance develops a reputation, forward guidance should help form a valuation and target.
    • Other companies in the sector are over reliant on one or two big hits, adding risk should one of those fall in popularity.
    • Glu faces a similar problem as Kim Kardashian: Hollywood will likely supply well over 50% of revenue this quarter.
    • Despite the Kardashian effect on the stock, the company has a good base of strong performing games that help to de-risk the company compared to peers.
  • Mountain Province Diamonds Offers 65% Upside
    Editors' Pick MDM Thu, Sep. 11, 2:22 PM Christopher De Sousa 4 Comments

    Summary

    • Mountain Province's Gahcho Kué diamond project could generate $4.1 billion in net operating margin for the 12-year mine life.
    • The presence of large diamonds within the reserve improves the longer-term financial outlook.
    • Shares are trading at a 39% discount to our 12-month target price of $8.30.
  • In The Eurozone, What Goes Around Comes Around, Even For Germany
    Editors' Pick EZU Thu, Sep. 11, 12:59 PM Elliott R. Morss 1 Comment

    Summary

    • Some journalists are bullish on the Eurozone: "We are starting to see growth".
    • Take care - the Eurozone should not be viewed as a single entity. It is made up of 18 very different economies.
    • The article looks at each country separately and offers investment advice.