Seeking Alpha
  • Valero Energy: Still Not Stopped By Cheap Oil
    Editors' Pick VLO Today, 2:46 AM DAG Investments Comment!

    Summary

    • VLO has beaten EPS estimates for 12 quarters, often by wide margins.
    • VLO valuation is now closer to, but still below both comparable peers.
    • Lower multiples are not justified, and peers may be undervalued too.
  • Micron: Q2 And The Road Ahead
    Editors' Pick MU Yesterday, 4:26 PM William Tidwell 54 Comments

    Summary

    • Q2 earnings are modeled and will be disappointing.
    • Downside risks abound over the course of the next four months but calendar second half will be very positive.
    • Micron remains an excellent intermediate to long-term investment.
  • Freeport-McMoRan: Be Bullish, Not Absurd
    Editors' Pick FCX Yesterday, 2:24 PM ColoradoWealthManagementFund 18 Comments

    Summary

    • Over the weekend, I read a piece on FCX that created irrelevant comparisons.
    • The piece also slammed contributors on Seeking Alpha, which prompted me to respond.
    • Freeport-McMoRan is in my portfolio, but I don’t kid myself about the value.
    • Liquidity issues shouldn’t be destroying the company, but they are substantially more significant now than before.
    • By comparing FCX to mining companies, an unfair comparison is made that ignores the difference in the sales composition of each company.
  • Twitter: Sisyphus And The Periscope Pull Forward
    Editors' Pick TWTR Yesterday, 1:54 PM Dallas Salazar 11 Comments

    Summary

    • TWTR has been pushing a boulder of doubt and industry skepticism up the valuation hill only to see it trickle down from the heights achieved.
    • I believe TWTR's Periscope acquisition materially changes the narrative at the company and will drive future year estimates much higher.
    • This should allow TWTR's projected near, mid, and long-term multiples to come in-line with peers much sooner than currently modeled.
    • With the market historically willing to pay ~24 months forward growth for shares I believe this will move TWTR shares higher on all durations.
    • I'm looking to get levered long TWTR on this company altering announcement.
  • Facebook F8 Wrap-Up: Bullish On Messenger And Oculus
    Editors' Pick FB Sun, Mar. 29, 5:01 PM WestEnd511 50 Comments

    Summary

    • Remain bullish on FB post-F8 conference.
    • FBM remains the frontrunner for FB's mobile communication push.
    • Expect Oculus shipment in 2H15. Strong content pipeline in 2016.
  • New Apple TV? Ask Why, Not When
    Editors' Pick AAPL Sun, Mar. 29, 1:14 PM Steven Isakson 59 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 Sun, Mar. 29, 12:58 PM Casual Analyst 51 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 a utility death spiral is misguided - what is about to die is the lease/PPA business model.
  • Landauer - New Competitive Product Threatens Core Business
    PRO Top Idea LDR Sat, Mar. 28, 5:00 AM Sleuth Investor 2 Comments

    Summary

    • LDR's Radiation Measurement business drives nearly all of LDR's profits and faces a new competitive threat that could erase more than 50% of EBITDA.
    • We believe Instadose 2, developed by LDR's primary competitor, privately-held Mirion, is ramping up commercial production and will beat Verifii to the market by at least 1 year.
    • LDR hopes to launch Verifii (similar to Instadose 2) in calendar 2016. We are skeptical LDR hits their timeline and think late 2017/2018 is more likely.
    • At a recent industry conference, Mirion noted a waiting list of nearly 195,000 units of Instadose 2 badges (~10% of the market), many of which are currently LDR customers.
    • LDR trades at 10.7x FY15 EBITDA with 3x leverage. We think the stock is worth $5 to $25 and that investors are unaware of the threat posed by Instadose 2.
  • Why I Think Melcor Development Is A Buy
    Editors' Pick MODVF Sat, Mar. 28, 2:52 AM Kevin Wiens 19 Comments

    Summary

    • Melcor Development is a real estate development company operating primarily in Alberta.
    • Past results indicate to me that the company is well managed.
    • My guess is the depressed share price is due to predictions of a rough property market in Alberta due to depressed oil and gas prices.
    • My estimate is that shares have about 40% of upside potential from current levels. As such, I have bought an initial position.
  • U.S. Shale Trends Indicated By Production Prowess Of Pioneer And RSP Permian
    Editors' Pick PXD, RSPP Fri, Mar. 27, 11:52 AM Jennifer Warren 9 Comments

    Summary

    • Pioneer Natural Resources depicts an industry-leading efficiency drive in shale manufacturing.
    • Its unique Permian position makes it a benchmark for Permian-based U.S. production.
    • The increases in oil recoveries per well offer insight into why U.S. production continues to grow in spite of reduced rigs counts and capital spending by producing firms.
    • Not all firms have Pioneer and RSP Permian-specific attributes, but production inferences industry-wide can be gleaned.
  • Sears Holdings: The End Game
    Editors' Pick SHLD Fri, Mar. 27, 11:41 AM Ioannis Tsoutsias, CFA 76 Comments

    Summary

    • Sears Real Estate Investment Trust (REIT) as a value destroying project.
    • The “fraudulent conveyance” risk.
    • The impact and the limits of financial engineering.
    • Advertising budget mostly affected by the most recent manifestation of Sears’ milking strategy.
  • John B. Sanfilippo: Severely Mispriced With Significant Near-Term Upside
    PRO Top Idea JBSS Fri, Mar. 27, 5:00 AM Howie Man 17 Comments

    Summary

    • Trading at a very low multiple for a CPG with high returns, low economic sensitivity, and an attractive growth profile with limited capex needs.
    • Ongoing mix shift leading to significant margin expansion and value creation.
    • Recent overreaction/misunderstanding surrounding immaterial news has created a unique buying opportunity.
    • Stock has +50% upside and potentially upwards of 140% in the event of a sale.
  • Sphere 3D: A Short So Fat, When I Yell 'Hey Kool-Aid!' It Comes Crashing Through The Wall
    PRO Top Idea ANY Fri, Mar. 27, 5:00 AM Keubiko 184 Comments

    Summary

    • Sphere 3D is a recent assembly of four money-losing companies.
    • The majority of the company's valuation is linked to its "Glassware 2.0" virtualization software.
    • I believe the company is setting up for disappointment with material downside in the share price possible, if not likely.
  • Williams Companies: Playing The Gas Infrastructure Super-Cycle
    PRO Top Idea WMB Fri, Mar. 27, 5:00 AM Stanislav Ermilov 23 Comments

    Summary

    • WMB offers top-class capex pipeline to support robust dividend growth for the foreseeable future.
    • Market valuations don't fully reflect the post-merger benefits of WPZ/ACMP deal.
    • Little linkage of revenues to short-term energy price swings with majority contracts being fixed-fee.
    • Under-appreciated value of the company's GP interest in Williams Partners.
  • Mattel: The Fork In The Road
    Editors' Pick MAT Fri, Mar. 27, 1:23 AM Quick Draw Capital 39 Comments

    Summary

    • Using Jim Collins’ book How The Mighty Fall, we can see that Mattel’s decline has been a long time coming.
    • This article walks readers through each step of the decline to show how they got to where they are today.
    • Mattel is at a fork in the road: acknowledge it has problems and take them seriously or keep going down the path they’re on.
  • ACADIA Pharmaceuticals At $30: The Upside Doesn't Justify The Risk
    Editors' Pick ACAD Thu, Mar. 26, 1:22 PM Edward Vranic, CFA 30 Comments

    Summary

    • ACAD has declined sharply in the last couple of weeks as hopes of a buyout were replaced with the reality of another NDA delay.
    • ACAD has increased nearly $2 billion in market cap since the positive FDA ruling in April 2013 while making little progress in transforming into a commercial company.
    • Analysts rate ACAD a buy but their reports show very aggressive assumptions that don't lead to very high price targets.
    • I believe ACAD could see $15-$20 this year if the overall biotech sector cools off.
  • FRP Holdings: Small-Cap Real Estate Spin-Off Valued At 35%+ Premium To Current Market Value
    PRO Top Idea FRPH Thu, Mar. 26, 5:00 AM Monsieur Market 4 Comments

    Summary

    • Spin-off of FRP Holdings creates a repricing opportunity.
    • Margin of Safety: The market incorrectly assigns a negative value to the company's developed land.
    • Board and management have a long-term view and are shareholder-friendly.
  • How Facebook Can Use Messenger Platform To Create Billions Of Dollars
    Editors' Pick FB Wed, Mar. 25, 5:26 PM Brian Nichols 47 Comments

    Summary

    • FB unveiled Messenger Platform at its f8 conference on Wednesday.
    • While most are talking about ESPN and the Weather Channel as application partners, I am more focused on the retail aspect of this new service.
    • Through retail and other recently announced payment services, FB has a legitimate chance to compete against EBAY and WU long term.
    • Lastly, FB is even set up nicely to compete against MA and V as a payment processor.
    • The end result could be billions of dollars annually, a payments segment that's just as large as advertising for FB.
  • Energous: More Reasons To Be Dubious
    Editors' Pick WATT Wed, Mar. 25, 1:57 PM Paulo Santos 41 Comments

    Summary

    • I did further digging on Energous.
    • I ended up finding further signs to be dubious of Energous' prospects.
    • I believe Energous' story was legitimate at inception, but has been hijacked to use in a stock promotion.
    • This is so regardless of whether Energous' technology pans out or not.
  • Wayfair's Slow Growth Won't Be Able To Uphold Its Ultra High Valuation
    PRO Top Idea W Wed, Mar. 25, 5:00 AM Radiant Research 19 Comments

    Summary

    • Given Wayfair's recent IPO, excitement has caused it to have a very high valuation which will likely correct post lock-up expiration on 3/31/15.
    • Traffic analysis of Wayfair.com shows that traffic is no longer growing significantly, and might be actually declining, which suggests growth expectations will disappoint.
    • Peer e-commerce firm Zulily, has been decimated after high expectations disappointed. Wayfair has a similar business model – could it become ZU’s horror film sequel?
    • Right now is the opportune moment to sell or short Wayfair since it’s up 60% year to date and its lockup expiration is next week.
  • The Bancorp: Continuing Problems With A Discontinued Operation
    Editors' Pick TBBK Tue, Mar. 24, 11:58 AM Larry Abrams 2 Comments

    Summary

    • The Bancorp filed a NT 10-K recently notifying the SEC that it had failed to file its 2014 10-K within the allowed 75 days.
    • We believe that the reason for this failure has been a reconsideration of the markdown of the loan portfolio associated with its discontinued commercial lending operation.
    • The Bancorp has until March 31st to file a 2014 10-K. We present the case that the bank will be booking an alarming 5% to 10% additional markdown.
    • As a result, we believe that the stock will drop another 15% in the next week and will test its 52-week low of $7.81 a share.
  • Fusion: Cloud Services With A Ground Level Valuation
    Editors' Pick FSNN Tue, Mar. 24, 11:49 AM Daniel Carlson 4 Comments

    Summary

    • Cloud services is a large and growing market.
    • Fusion is a compelling value opportunity in a growth industry.
    • Stable revenue base and acquisition strategy lead to continued solid EBITDA growth.
    • Liquidity issues need to be overcome for Fusion to achieve peers' valuations.
  • BlackBerry: Even The Bulls Are Giving Up On Hardware
    Editors' Pick BBRY Tue, Mar. 24, 9:40 AM Mark Hibben 479 Comments

    Summary

    • Recent bullish sentiment on BlackBerry acknowledges hardware weakness, but points to software and services as growth areas.
    • Enterprise mobile device management is pointed to as an opportunity for BlackBerry.
    • The ongoing collapse of the hardware business will probably force BlackBerry out of hardware some time in the coming year.
  • Gray Television: Another Shade Of Gray
    PRO Top Idea GTN Tue, Mar. 24, 5:00 AM Lord Baltimore 5 Comments

    Summary

    • Retrans fee hikes have been surprisingly strong, which has boosted Gray's share price, but network reverse comp hikes are being underestimated by the company and investors.
    • TV ad sales have been sluggish. Now that the economy has recovered from the Great Recession, TV ad sales may be showing signs of "glacial melt" due to digital encroachment.
    • We are short (and have been short-term wrong), but remain so with a $9 one-year target price.
  • TimkenSteel: Deteriorating Fundamentals Create Short Opportunity
    PRO Top Idea TMST Tue, Mar. 24, 5:00 AM Westpark 3 Comments

    Summary

    • TimkenSteel is facing a prolonged period of downward pricing pressure due to the supply/demand dynamics of the steel market.
    • Dividend and share repurchase will not be covered by cash from operations in 2015, forcing the company to increase leverage above internal targets.
    • Exposure to the exploration aspect of Oil & Gas drilling leaves the company very exposed to declines in the North American rig count.
    • The company is trading at a significant premium to peers, but looks cheap when initially screened due to lofty sell-side expectations.
    • Return characteristics of an LBO do not look attractive, making a takeover less likely in my opinion.
  • Adobe: The SaaS Company That Grew From Zero To 4 Million Subscribers In 2.5 Years
    Editors' Pick ADBE Mon, Mar. 23, 2:45 PM Tomasz Tunguz 6 Comments
  • Southwestern Energy: Double Down Or Fold?
    Editors' Pick SWN Mon, Mar. 23, 2:13 PM Marc Radow 14 Comments

    Summary

    • Value resides in what's lesser known and obvious.
    • Analysts / sellers are looking at historical data.
    • Market is mispricing fundamental changes.
  • A Closer Look At The Future Of Danaos Corporation
    Editors' Pick DAC Mon, Mar. 23, 4:58 AM James Catlin Comment!

    Summary

    • Containership rates are on the rise, and Danaos Corporation could benefit.
    • The macro outlook seems favorable, and a thin orderbook - especially in the 8,500 TEU class and under - provides some hope for Danaos Corporation.
    • Prudent management looks to be paving the way for a reinstatement of dividends.
  • Kroger: The Top Grocer Earns Higher Multiples
    Editors' Pick KR Fri, Mar. 20, 3:44 PM DAG Investments 14 Comments

    Summary

    • KR is the industry leader, but is still valued well below the industry.
    • KR may not quadruple again soon, but it still has significant upside.
    • Tech innovation is actually a growth driver for this particular grocer.
    • Whether full acquisitions or select assets, expect more deals from KR.
  • Railcar Makers: Deep Value In An Overbought Market
    Editors' Pick GBX Fri, Mar. 20, 11:27 AM Bret Jensen 80 Comments

    Summary

    • The collapse in oil prices since the summer has decimated most of the energy sector and a good portion of other industries which serve the energy complex.
    • One of these industries is the rail car manufacturers where oil tank car demand has been a key source of growing revenues in recent years.
    • The sector has been oversold as the industry has little spare capacity, a growing backlog and cheap companies. Below are two stocks that should rebound sharply in the near future.
  • Will Apple, Sony And DISH's Cord-Cutting Plans Really Make An Impact?
    Editors' Pick AAPL, DISH, SNE Fri, Mar. 20, 9:27 AM The Entertainment Oracle 4 Comments

    Summary

    • Apple, Sony and DISH have all announced plans to get into the streaming subscription game, but each are missing a few key elements.
    • Sporting events remain a hot button topic as none of the three can confidently say they have the average sports fan covered.
    • Live streaming aside consumers are still going to want a Netflix, Hulu or Amazon type subscription as a companion service and that’s going to bump their monthly price up.
  • Essex Rental: Technical Default Masks Massive Value; Triple-Digit Returns Possible
    PRO Top Idea ESSX Fri, Mar. 20, 5:00 AM Terrier Investing 42 Comments

    Summary

    • ESSX trades at under $0.80 per share, with an appraised orderly liquidation value of over $5/share. Going concern value could be significantly higher if/when crawler utilization improves.
    • Given the debt load, the situation is not without risk, but the current enterprise value is below the company's borrowing capacity as assessed by conservative lenders.
    • The valuation discount seems too extreme; investors could see triple-digit upside over the next year or two.
  • The 10 Biggest Myths About Resonant
    Editors' Pick RESN Thu, Mar. 19, 5:19 PM Lou Basenese 39 Comments

    Summary

    • Misinformation and misunderstandings have created a compelling buying opportunity under $10 for speculators. But do your own due diligence first.
    • Top-tier banks and institutions, including Barclays, are taking increasing interest in the company.
    • Securing a first design win with leading RF front end suppler, Skyworks, is the next key catalyst.
    • Once commercialization commences, performance of Skyworks' and Avago's stocks demonstrate upside is multiples higher for RESN, as RF industry is in a multi-year, rapid growth trend.
    • Risk averse investors should wait until after a design win is announced and technology risk is completely eliminated before entering a position.
  • Tessera Technologies Offers Investors The Complete Package
    Editors' Pick TSRA Thu, Mar. 19, 1:00 PM Lee Kronzon, CFA 7 Comments

    Summary

    • My investment thesis is that Tessera Technologies presents a highly appealing investment opportunity as a unique technology innovation and intellectual property licensing firm for semiconductor packaging and image processing solutions.
    • Key investment merits include a leading market position, high entry barriers, significant market potential, strong growth opportunities, robust margins, healthy balance sheet, strong cash flows, shareholder-friendly management, and attractive valuation.
    • Key investment catalysts include additional sales opportunities (including both recurring and episodic revenues), potential merger and acquisitions, and increased investor awareness.
    • Key investment risks seem manageable and include customer concentration, technology displacement, patent obsolescence, potential litigation, and slow uptake of new technologies.
    • My analysis of the "thesis tiles" composing the Tessera Technologies "investment mosaic" suggests that it offers equity investors the complete package: High quality, strong growth, and attractive value.
  • KGHM Starts The Largest Investment Program In Its History
    Editors' Pick KGHPF Thu, Mar. 19, 11:50 AM Simple Digressions Comment!

    Summary

    • KGHM wants to produce 1 million tons of copper in 2020.
    • The results reported in 2014 confirm that the company is very effective in capital allocation.
    • In the short term, the company's results may be boosted due to the U.S. dollar strength.
  • Intel Or TSMC? Which Deserves Your Investment Dollar?
    Editors' Pick INTC Thu, Mar. 19, 11:24 AM Technology Investing 60 Comments

    Summary

    • Intel and TSMC have close to the same market cap, but have radically different sales and trajectories.
    • Intel is losing badly in the growing mobile market, while TSMC is expanding with it, allowing for a larger Capex than Intel in 2015.
    • TSMC has far stronger partners, but also stronger competitors.
  • Apple's Sane Advantages
    Editors' Pick AAPL Thu, Mar. 19, 10:18 AM Mark Hibben 115 Comments

    Summary

    • High resale values for used iPhones have been pointed to as an “insane advantage” for Apple by helping defray the cost of new iPhone models.
    • While high resale value indicates the inherent worth of the iPhone, it doesn't drive new iPhone sales.
    • The key advantages that drive new iPhone sales for Apple are its mobile operating system and ecosystem, its custom-designed processors and its superior systems integration.
  • Sina/Weibo Relative Valuations Present Huge Arbitrage Opportunity
    PRO Top Idea SINA, WB Thu, Mar. 19, 5:00 AM CVC Research 41 Comments

    Summary

    • We estimate the value of Sina's stake in Weibo, plus the cash and investments on its balance sheet, is worth over $50/share, or 55% upside from SINA's current share price.
    • Sina's stake in US-listed Weibo alone is worth over $28/share to SINA shareholders. Net cash and investments are worth another $22+/share.
    • SINA management has been taking advantage of its ample balance sheet and this market inefficiency by aggressively buying back its stock, a fact that has gone largely overlooked by analysts.
    • We lay out a relatively simple long/short pair trade in SINA/WB to capture this arbitrage opportunity.
  • Outerwall - The Company Everyone Loves To Hate
    PRO Top Idea OUTR Thu, Mar. 19, 5:00 AM Wilson Wang 40 Comments

    Summary

    • Continued share buybacks at depressed prices.
    • Management's commitment to share buybacks.
    • 1-year PT - $90.
  • Activision Blizzard: Priced For Perfection, With Headwinds Coming
    PRO Top Idea ATVI Thu, Mar. 19, 5:00 AM Vince Martin 11 Comments

    Summary

    • ATVI has gone from a 10-12x P/E stock to a current valuation near 20x 2015 guidance.
    • The massive repurchase of Vivendi's stake has hidden the fact that the net income has been flat for five years.
    • With the market assuming perfect execution and lowballed guidance, any slip in Q2 numbers could lead the stock down sharply.
  • Despite Recent Strong Gains, There's A Lot More Upside In Panoramic Resources
    PRO Top Idea PANRF Thu, Mar. 19, 5:00 AM Da Shi Research 1 Comment

    Summary

    • Panoramic has re-rated 56% since mid December, when I highlighted the 20% plus cash flow yield the company offered to investors in 2015 and 2016.
    • Since then, Panoramic has announced a potentially significant new discovery within its Lanfranchi Mine, potentially extending it 3 years beyond late 2016 and further de-risked its other exploration projects.
    • The next 3-6 months of resource definition drilling will be a tipping point for Panoramic, with the stock likely to increase 129% as these additional reserves and resources are booked.
    • PAN should also see a re-rating in its share price as its current short mine life discount is removed, which alone should increase to the share price some 74%.
    • Even ignoring the strongly encouraging exploration drill results recently, the company's existing reserve base is already sufficient to deliver an investor today a payback period of around 2.5 years.
  • Throw The Dice With Eldorado Resorts
    Editors' Pick ERI Wed, Mar. 18, 4:12 PM Darren McCammon 4 Comments

    Summary

    • Eldorado Resorts, a somewhat geographically diversified regional gaming operator, is the result of a recent merger between El Dorado casinos and MTR gaming group.
    • ERI is under followed and under valued, but major analysts have taken notice so that may be about to change.
    • I see 40% upside in 2015, particularly if they are able to successfully refinance debt this summer.
  • Alibaba: Short-Term Problems May Continue, But This Is Why It's Still A Long-Term Winner
    Editors' Pick BABA Wed, Mar. 18, 12:09 PM Justin Giles 45 Comments

    Summary

    • Alibaba: The who, what, where, when and why.
    • Why Alibaba meets Warren Buffett's advice of "Be fearful when others are greedy and to be greedy only when others are fearful.".
    • With a price target of $120, investors today could potentially see a return of close to 50% on their investment within the next 12-18 months.
  • Herbalife: Mr. DeSimone's Neighborhood Of Accounting Make Believe
    Editors' Pick HLF Wed, Mar. 18, 10:28 AM Fear and Greed 89 Comments

    Summary

    • Herbalife’s Q4 2014 “Adjusted Net Income” results failed to meet management’s guidance which was delivered only weeks earlier - again.
    • Herbalife's list of non-recurring (but consistently recurring) "add-backs" to GAAP net income grows longer with every passing quarter.
    • Chief Financial Officer John DeSimone appears to be propping up reported GAAP results with aggressive accounting techniques.
    • The quality of Herbalife’s earnings has deteriorated significantly since the third quarter of 2013, as cash generated from operations (including Forex) is now substantially lower than reported GAAP net income.
    • Herbalife’s financial picture continues to deteriorate as balance sheet strength, book value, cash flow and operating performance have been negatively impacted by reputational disfavor.
  • The Insane Apple Advantage Revisited
    Editors' Pick AAPL Wed, Mar. 18, 10:15 AM Paulo Santos 389 Comments

    Summary

    • Apple has historically had an insane advantage that few talk about, but is crucial for it being able to sell a massive number of high-priced iPhones.
    • As it stands, this advantage might be narrowing significantly.
    • If such narrowing is to persist, it might become a significant problem as soon as the iPhone 6S replacement cycle comes around, later in 2015.
  • Aflac Is Undervalued In This Hot Market: Don't Buck The Duck
    Editors' Pick AFL Wed, Mar. 18, 9:55 AM Ray Merola 57 Comments

    Summary

    • Aflac is one of the best-run insurance franchises in the industry.
    • Shareholder-friendly management rewards patient investors.
    • Investor concerns over yen/dollar currency exchange is overblown.
    • The shares trade far below fair value; it's one of a dwindling number of undervalued securities in today's hot market.
  • Intel Inside The World's Possibly Most Powerful Android Phone
    Editors' Pick INTC Wed, Mar. 18, 7:50 AM Alcaraz Research 67 Comments

    Summary

    • Asus has released its new flagship ZenFone 2 Android phone. It’s cheaper than Xiaomi’s Mi4.
    • In spite of its 4GB of RAM, premium build, and superior camera technology, the ZenFone 2 retails for less than $300.
    • The high AnTuTu benchmark score of the ZenFone 2 confirms Intel's older x86 Atom mobile processors are as good as Qualcomm’s Snapdragon 800 series.
  • Rexnord: A Private Equity-Backed Industrial Company Supplying Mission-Critical Products
    Editors' Pick RXN Wed, Mar. 18, 12:06 AM Mark Lin Comment!

    Summary

    • Rexnord's high EBITDA margins and strong recurring aftermarket revenues for its Process & Motion Control business should persist in the future.
    • The company's Water Management segment has benefited from a growth in specified products and retrofit installations.
    • Rexnord's M&A growth strategy is sustainable, considering the low valuation multiples that it paid for target companies in the past and its ability to generate strong free cash flows.
    • A three-year target price of $39.76 implies 51.3% upside, or an annualized investment return of 14.8%.
  • Cat-astrophe? No, But There Is A Good Case Against Caterpillar Shares
    Editors' Pick CAT Tue, Mar. 17, 2:02 PM DoctoRx 47 Comments

    Summary

    • Caterpillar Inc. has seen its business prospects dim over the past few years.
    • Its stock has held up better than its earnings.
    • Multiple trends that affect the most variable parts of its business show few if any signs of improving, and several have continued to worsen.
    • The downtrend in resource stocks is reminiscent of other major busts the past 15 years, thus CAT shares could have much farther to fall.
  • Will TheFind Help Facebook Make Inroads In The E-Commerce Space?
    Editors' Pick FB Tue, Mar. 17, 10:44 AM Alex Pitti 14 Comments

    Summary

    • Facebook will control e-commerce because it is the place users spend the most time online.
    • This makes buying online more convenient.
    • The new buy button, product ads and purchase of TheFind will accelerate this initiative.
    • Facebook can use its data to help firm's figure out which product to produce.
    • Facebook can tell consumers which products their friends like. In the future this may be used with the smartwatch to encourage purchases.