Seeking Alpha
  • Update: Harman International Earnings
    HAR Today, 2:51 PM Marshall Hargrave Comment!

    Summary

    • The company’s recent quarterly results beat on the top and bottom lines.
    • We still have a long-term bullish thesis but question the company’s valuation.
    • Given the company’s cost saving initiatives and strong presence in the “connected car”.
  • J.M. Smucker Has Room To Grow After Today's Earnings Release
    SJM Today, 2:31 PM Sure Dividend Comment!

    Summary

    • J.M. Smucker's Earnings Release has caused the stock to decline today.
    • The company still has solid growth plans in place for long-term shareholders.
    • Find out which Smucker coffee brand grew volume 24% year over year.
  • Why Mattel Shareholders Should Be Concerned
    MAT Today, 11:52 AM Matthew Greenberg 5 Comments

    Summary

    • The vast amount of insider and institutional shareholder selling warrants a closer look at Mattel's fundamentals.
    • The growing female body image movement will continue to hurt Barbie sales, and Mattel has not taken adequate steps to address this.
    • The explosion of the video game industry will continue to eat away at Mattel sales unless management follows the lead of other traditional toy companies and diversifies.
    • There are some bright spots for Mattel, but these opportunities are overshadowed by weaknesses in Mattel's core products.
  • Kate Spade: Still Not A Great Buying Opportunity
    KATE Today, 11:51 AM Marshall Hargrave 1 Comment

    Summary

    • The shares of Kate are down 16% over the last week, as it revised longer-term guidance downward.
    • Value investors might be fooled into thinking this a great entry into a growth stock.
    • The valuation is still very rich despite the pullback, and the North American market appears to be saturating.
  • Boulder Brands: An Enticing Long-Term Investment
    BDBD Today, 11:48 AM Alpha Strategist 3 Comments

    Summary

    • There is a huge addressable market for gluten-free food and the strong brands of Boulder Brands could capitalize on the growth potential.
    • Boulder Brands is also focusing on capturing the non-GMO food category. Non-GMO food is expected to attract high growth in the coming years.
    • Consensus analyst estimate show that the company is undervalued and presents a very attractive investment opportunity.
  • Tesla Announces 'Infinite Warranty'... Pros And Cons
    TSLA Today, 11:44 AM David at Imperial Beach 29 Comments

    Summary

    • Tesla announced the Model S drive train would be warranted for 8 years, unlimited mileage.
    • This matches the battery pack warranty.
    • Should address customer and investor concern about drive train reliability.
    • Investors should note that warranty reserve is not coincidentally also being increased this quarter.
  • Why I'm Not Buying Campbell Soup At These Prices
    CPB Today, 11:39 AM Jeroen Jongbloed Comment!

    Summary

    • Campbell plans to launch over 200 new products in FY2015 and increase revenue to $10 billion within 5 years.
    • However, shares are trading well above their 5 year average p/e and p/s ratios.
    • Current ratio of 0.69 and quick ratio of only 0.42 are a good reason to look elsewere.
  • Update: Kimberly-Clark's New Sustainability Report Shows Good Progress
    KMB Today, 11:38 AM BB Research Comment!

    Summary

    • Kimberly-Clark has made good progress in sustainability, its latest annual sustainability report shows.
    • Progress in sustainability is important, since it creates a competitive advantage for the company.
    • Earlier we mentioned that the company is focusing on innovative product launches, but the company is also creating solid competitive advantage by scoring impressive sustainability, which we didn’t mention.
    • The company’s impressive progress toward "Sustainability 2015" confirms our investment thesis for the company.
  • GoPro: Should You Ride This Roller Coaster Stock?
    GPRO Today, 11:33 AM Sarfaraz A. Khan Comment!

    Summary

    • GoPro’s latest quarterly results came in better than market’s expectation.
    • GoPro dominates the action camera market and has a real opportunity for growth as a video content provider.
    • However, there are serious concerns regarding this company and its stock.
  • Fuel Systems Solutions Is Worth $3.30 - $4.10 Per Share
    FSYS Today, 11:22 AM Shock Exchange 6 Comments

    Summary

    • Fuel Systems Solutions reported quarterly earnings on Monday.
    • Despite a 21% decline in revenue Y/Y and deteriorating operating margins, the company trades at 24x LTM adjusted EBITDA ($9.90 per share).
    • At 8x - 10x EBITDA, the company is worth $3.30 - $4.10 per share.
  • American Apparel Isn't Out Of The Woods Yet
    APP Today, 9:28 AM Daniel James 4 Comments

    Summary

    • American Apparel has been undergoing a management shakeup, following the ousting of its CEO.
    • It has been struggling to turn a profit in recent years, and again reported a quarterly loss.
    • There are some signs of improvement, but it is far too early to speak of a turnaround.
  • Now Is The Time To Buy Ralph Lauren
    RL Today, 9:12 AM Jeroen Jongbloed Comment!

    Summary

    • EPS growth in the current fiscal year will be limited due to higher operating expenses related to company expansion.
    • The company has beaten analyst EPS estimates in each of 4 most recent quarters.
    • Ralph Lauren's balance sheet looks great, with $15.55/share in cash and short term investments.
  • AEP Industries Is Ready To Benefit From Any Softness In Resin Prices
    AEPI Today, 6:30 AM Darspal S Mann 1 Comment

    Summary

    • The sharp rise in raw material costs has negatively affected the gross margins, but prices are catching up to close the negative spread.
    • Slow but consistent price increases, synergies from recent acquisitions and capacity additions position the company well for volume growth.
    • The stock can rise 30%-40%, as earnings can turn the corner quickly due to low share count and high operating leverage in the model.
  • Chiquita Brands: The Deal With Fyffes Is Probably Dead; A Higher Offer Is Likely
    CQB Today, 6:15 AM Yuanxi Zhang 2 Comments

    Summary

    • Cutrale-Safra made an unsolicited offer at $13.00 per share for Chiquita Brands.
    • Chiquita was planning to merge with Fyffes in an inversion deal.
    • Given a more attractive choice, Chiquita's shareholders will probably vote down the deal with Fyffes.
    • Chiquita is likely to be sold at $15/share or above from financial or strategic buyers in the end.
  • Update: Resolute Forest Products' Pension Liability Continues To Decrease
    RFP Today, 6:04 AM Unconventional Capital Wisdom 2 Comments

    Summary

    • Pension liability continues to contract with a higher discount rate.
    • Still some downside in worse case scenario, however, the company is likely to reach profitability next year.
    • Continues to trade for low EV/trailing EBITDA multiple although the company is likely to achieve much more in the future.
  • Can TNGA Help Toyota Maintain Its Global Supremacy?
    TM Today, 5:53 AM ICRA Online Ltd. Comment!

    Summary

    • Competition is heating up between Toyota and Volkswagen for winning the global sales crown.
    • Both companies are banking on their new engineering innovations to win the sales race.
    • Volkswagen has already launched cars with its new MQB architecture, while cars with Toyota’s TNGA architecture are due next year.
    • The roll-out of the new architecture is proving to be a bumpy ride for both auto majors.
  • After Falling, Is La-Z-Boy A Value Play Or A Stalwart?
    LZB Today, 5:30 AM Daniel Jones Comment!

    Summary

    • After reporting results for the quarter, shares of La-Z-Boy fell in after-hours trading.
    • Even though revenue handily outperformed estimates, the company posted profits that, while nice, were slightly lower than forecasted.
    • Given its performance, the retailer looks like an attractive prospect in the long run, but it's certainly no value play at current levels.
  • KapStone Paper - Awaiting A Better Entry Level In A Long Term Value Creator
    KS Today, 2:07 AM The Value Investor 1 Comment

    Summary

    • Deutsche Bank turns optimistic on KapStone Paper, adding to multi-year momentum.
    • The company has created value in an industry which traditionally has destroyed a lot of shareholder value.
    • I like the company and its track record, but won't buy at any price.
    • A $25 entry point, representing a 10 times earnings multiple during the good times in the economy cycle is my targeted entry point.
  • Kellogg's Past Is A Good Indicator Of Its Future
    K Today, 1:37 AM Balanced Investing 2 Comments

    Summary

    • Kellogg’s last quarter showed the problems being faced by the company as revenue and profit fell.
    • The company’s present plans to improve its bottom line and some measures directed towards the top line are unconvincing.
    • Better alternatives in the food industry offer a safer return on investment.
  • Sony Hits The Hardware At Gamescom
    SNE Today, 1:22 AM John McKenna Comment!

    Summary

    • SNE reports 10 million consoles sold since November, giving them an early lead in the console wars.
    • Announces Share Play, allowing users to share games online without buying additional copies.
    • Didn't blow anybody away at Gamescom 2014, but lead over MSFT, Nintendo made it unnecessary to do so.
  • Did Justin Bieber And Taylor Swift Really Kill Elizabeth Arden?
    RDEN Today, 12:34 AM Renee Butler 2 Comments

    Summary

    • Stock in Elizabeth Arden took a steep fall on Tuesday after the company announced major decreases compared to previous performance and a new private equity investor.
    • Elizabeth Arden blamed the decline on weaker than expected fragrance sales, particularly the Justin Bieber and Taylor Swift fragrances.
    • The company is promising to manage costs going forward but weak demand is difficult to overcome, especially when there is no innovation.
  • Could WhiteWave Foods Be The Next Acquisition For Coca-Cola?
    WWAV, KO Yesterday, 7:41 PM Dan Strack 22 Comments

    Summary

    • Coca-Cola has been acquiring fast growing beverage companies and WhiteWave Foods fits the bill for an acquisition.
    • WhiteWave product lines include Silk brand soy and almond milk, International Delight coffee creamer, Horizon Organic dairy products and Earthbound Farms organic produce.
    • WhiteWave revenue increased 36% in 2Q14 and is expected to continue this pace through the remainder of 2014.
  • Sensata Technologies: Great Acquisition Of Schrader, Overall Premium Valuation Limits Appeal
    ST Yesterday, 6:41 PM The Value Investor Comment!

    Summary

    • Sensata Technologies acquires the Schrader Group.
    • The deal looks very appealing as Sensata buys the company at a discount to its own valuation while Schrader has excellent growth prospects and synergies.
    • Despite the very nice deal, the overall valuation is too steep for me despite the appealing growth prospects.
  • Woolworths Limited: A Long-Term Grower With Stable, Rising Dividend For Income Investors
    WOLWF Yesterday, 4:27 PM LN Investors Comment!

    Summary

    • Woolworths maintains its place as the supermarket and general retailing market leader.
    • It is a classic growth stock that is good for long-term investors with stable share price appreciation and a steadily growing dividend.
    • It is moving into new markets like DIY Hardware and financial services to augment its retailing growth, though there are growing pains to work through.
  • John B. Sanfilippo: Transformed CPG Company With Large Upside
    JBSS Yesterday, 2:21 PM Howie Man 8 Comments

    Summary

    • Growing consumer packaged goods company trading at a significant discount – 6.5x EV/EBITDA and 7.5x EBITDA-capex.
    • Transformed into high return, non-cyclical, branded business with stable earnings.
    • +75% upside with near-term catalysts.
  • Update: Lululemon 13D Filing
    LULU Yesterday, 12:48 PM Marshall Hargrave Comment!

    Summary

    • Advent International has officially taken a near 15% stake in the retailer, reducing former CEO and co-founder Chip Wilson’s stake by half.
    • Our thesis remains bullish, as the company still trades well below peers but still has a couple key growth opportunities.
    • We didn’t expect CEO Chip Wilson’s departure, but are encouraged by the somewhat peaceful resolution with Advent.
  • Coke Rated Juicy: It's Playing The Monster Deal The Right Way
    KO Yesterday, 10:55 AM Orange Peel Investments 8 Comments

    Summary

    • Coca-Cola is one of the best known dividend payers in the history of the public markets.
    • The company has a 120+ year history, major brand recognition, and serious pedigree. However, the company has been looking for ideas to "energize" its growth of late.
    • We like the reasoning behind Coke getting involved in Monster, and we like the way they are engineering the deal.
  • Tesla: The Short Of The Decade?
    TSLA Yesterday, 9:59 AM Achilles Research 476 Comments

    Summary

    • Bullish investors mindlessly push Tesla's stock from one high to the next.
    • Tesla is a crowded trade and predominantly loved by retail investors.
    • Company trades at nearly 80 times earnings and more than 13 times sales after second quarter earnings.
    • Tesla's valuation has run way ahead of its fundamentals and might (again) be a very attractive Short candidate.
  • Monster Rally: $25/Share Of Upside Still On The Table
    MNST Yesterday, 9:41 AM Apus Investments 3 Comments

    Summary

    • Monster shares were energized from a partial bid by Coke for 16.7% of the company.
    • Additional catalysts for Monster's share price are: brand swap gain, international expansion, and share buy backs.
    • Deal could still add $25/share in additional value to Monster.
  • Estée Lauder: Greater Operational Achievements, Yet Shares' Prospects Are Less Than Beautiful
    EL Yesterday, 9:40 AM The Value Investor Comment!

    Summary

    • Estee Lauder posted great fourth-quarter headline results, which came in above estimates.
    • This should be discounted to some extent, as accelerated orders are "borrowed" from the upcoming first quarter.
    • Despite the great track record and good growth prospects, a 25x earnings valuation leaves little appeal in my eyes.
  • Is Bongrain On Its Way To A Management Buy-Out?
    BNGRF Yesterday, 8:50 AM The Investment Doctor Comment!

    Summary

    • Bongrain is a family company and the family owns 2/3rds of the outstanding shares. Share repurchases have increased the percentage of family owned shares.
    • Share repurchases have been halted as all the operating cash flow has been reinvested in the company.
    • These investments should improve the profitability of the company and increase the free cash flow.
    • As debt is cheap right now, a management buyout might be possible, as even after buying the remaining 33% at a 35% premium, the Net Debt/EBITDA ratio remains below 3.
  • General Mills: Should You Buy It?
    GIS Yesterday, 2:46 AM Balanced Investing 3 Comments

    Summary

    • General Mills plans to primarily focus on accelerating top line growth in the fiscal year 2015.
    • It aims to achieve its objective by launching a new range of products, renovating its current brands and undertaking other marketing initiatives.
    • The company aims to increase its international presence in the key emerging markets to achieve future growth in its financial returns.
    • Under the Holistic Margin Management “HMM” program, it is estimated that the savings achieved in 2015 will be greater than $400 million.
    • The stock is undervalued and represents an upside potential of 36%.
  • 3 Reasons To Own National Presto Industries
    NPK Yesterday, 12:44 AM Jack Foley 7 Comments

    Summary

    • Presto has high inside ownership - interests are aligned between owners and investors.
    • Presto pays a separate special dividend of over 7% which is hidden from Wall Street.
    • NPK has no debt, is sitting on over $60 million in cash and a lower average PE ratio over the past 10 years.
  • Altria: Dividend Discount Model Suggests Shares Are 10% Undervalued
    MO Mon, Aug. 18, 6:17 PM Stock Gamer 3 Comments

    Summary

    • The company has sufficient capacity to support 6%-7% dividend per share growth over the next few years through internal cash flows, additional debt borrowing, and share repurchase.
    • The current share price implies a perpetual dividend growth rate between 4.0% and 4.5%.
    • A two-stage dividend discount model suggests a fair value of $46.
  • Procter & Gamble's Long-Term Future Is Fine
    PG Mon, Aug. 18, 4:37 PM Alpha Generator 3 Comments

    Summary

    • My colleague Michael Carter contends that PG's long-term prospects are not appealing.
    • Claims that the company may struggle with managing its brand portfolio and innovation are not major concerns.
    • For defensive blue-chip investors, PG still represents as good an opportunity as any.
    • PG's expanded earnings multiple is largely the result of market re-rating, not single-name expectations growth.
    • PG's long-term future is fine, and the company's current valuation may even merit a short put option play today.
  • Keurig Green Mountain Showed A Strong Q3 2014 And Emphasized A Strong Full Year Outlook
    GMCR Mon, Aug. 18, 4:12 PM Seth Golden 2 Comments

    Summary

    • Keurig topped EPS estimates again.
    • Brewer pricing deteriorated by roughly 20 points in Q3 2014.
    • Cost for green coffee rises.
    • Keurig raises portion pack prices in November 2014.
    • Keurig 2.0 will launch shortly at Bed Bath & Beyond.
  • Lululemon: A Slightly Different Angle, Which Reveals A Few Upside Opportunities
    LULU Mon, Aug. 18, 3:56 PM Adam Levine 7 Comments

    Summary

    • LULU would be better compared to athletic apparel companies than fashion retailers based on product line and margins.
    • The company's new marketing plan employing brand ambassadors will likely to contribute to gain a larger market share.
    • The company has a lot of room to expand geographically.
    • LULU has an unleveraged balance sheet, which gives the company financial flexibility.
  • Is Tesla An Energy Company?
    TSLA Mon, Aug. 18, 3:13 PM Daniel Jennings 164 Comments

    Summary

    • Tesla’s behavior is more like that of a vertically integrated energy company such as ExxonMobil than a traditional automaker.
    • Tesla’s business plan is increasingly focused on energy production and distribution rather than cars.
    • At some point Tesla might be forced to start generating its own electricity.
    • Tesla will need to take on vast amounts of debt if it wants to become a successful energy supplier like Chevron.
  • Sturm, Ruger And The Case Of Depreciation Deception
    RGR Mon, Aug. 18, 1:58 PM William Greenfield 22 Comments

    Summary

    • RGR seems to depreciate their assets faster than any other manufacturer I've come across.
    • Depreciation is an important component of earnings.
    • RGR may be misleading investors by misstating their depreciation expense.
  • Is It Really A Surprise That SodaStream Is Yet To Be Acquired?
    SODA Mon, Aug. 18, 1:51 PM Brian Nichols 1 Comment

    Summary

    • Why hasn't Sodastream been acquired yet?
    • Will it be acquired?
    • And should you be interested in SodaStream with the stock down nearly 50% in the last year?
  • Resolute Forest Products' Plan For Southern Sawmills Is Likely A Red Herring
    RFP Mon, Aug. 18, 1:17 PM Terry Schumacher Comment!

    Summary

    • Resolute Forest Products would like to reduce the importance of newsprint and commercial printing papers in their product portfolio.
    • The company has indicated that it is looking at the possibility of buying or building lumber mills in the U.S. South.
    • Any activity of this sort by Resolute is likely to be quite insignificant in terms of the overall company.
  • Why Buying Monster Beverage Might Be A Monster Mistake
    MNST Mon, Aug. 18, 1:10 PM Daniel Jones 5 Comments

    Summary

    • Monster agreed to sell a large piece of equity to Coca-Cola for $2.15 billion and in exchange for an asset swap, sending shares up 30%.
    • This might remind investors of when Coca-Cola acquired 10% of Keurig Green Mountain, acting as a catalyst for the company's share price appreciation.
    • This might, however, be a mistake for investors to get their hearts set on. Right now, Monster is very expensive and, as such, may have limited upside moving forward.
  • Post: Input Costs Are Out Of Control
    POST Mon, Aug. 18, 1:00 PM Gordon Tam, CFA 4 Comments

    Summary

    • Prospective POST investors should stay on the sidelines as input costs can drive Michael Foods, a POST division, to miss consensus EBITDA targets.
    • The current consensus EBITDA factors into normalized input costs. If egg prices continue to rise or remain at current high levels, POST will deliver disappointing earnings.
    • The Cheese & Other Dairy division of Michael Foods also suffers from high milk prices as input costs.
  • Does All The Positivism About Under Armour's Growth Justify Its Valuation?
    UA Mon, Aug. 18, 12:35 PM Pim Keulen 4 Comments

    Summary

    • Many investors praise Under Armour's revenue growth prospects.
    • Under Armour spends a lot of money to support revenue growth.
    • Less articles elaborate on the company's expenses to support growth.
    • I will discuss Under Armour's valuation compared to peer firm Nike.
  • Mondelez: A Decent Long-Term Investment
    MDLZ Mon, Aug. 18, 12:09 PM Alpha Strategist Comment!

    Summary

    • Mondelez produced an 11.29% price return in one year. Its innovative platform and global presence gives it good growth prospects.
    • Mondelez is focusing on growing its snack business that makes up 75% of the product portfolio.
    • Mondelez and D.E. Master Blender are merging coffee segments to exploit the $81 billion coffee market.
    • The company re-engineered its supply chain to make it leaner and more efficient in order to reduce costs, expand its margins and speed up communication.
  • Update: Lifeway Foods Earnings
    LWAY Mon, Aug. 18, 11:56 AM Asean Century 2 Comments

    Summary

    • Lifeway Foods beat earnings and revenue estimates in Q2.
    • I remain bullish on the company as the futures market is signaling that milk prices will come down later this year.
    • The demand for Lifeway’s Kefir has exceeded my expectations. The milk price impact on EPS was no surprise. I was hoping gross margins would remain around 28% to 29%.
  • Update: Primo Water Earnings
    PRMW Mon, Aug. 18, 11:55 AM Marshall Hargrave Comment!

    Summary

    • The company beat 2Q consensus on the top and bottom lines.
    • We still have a long-term bullish thesis for the company given the compelling prospects for multi-gallon water.
    • We anticipated the earnings beat but didn’t expect the negative reaction by the market.
  • SodaStream Leads A Category With Complimentary Systems Coming
    GMCR, KO, PEP Mon, Aug. 18, 11:24 AM Seth Golden 1 Comment

    Summary

    • Consumer is drinking more fruity flavored CSDs and colas are losing ground.
    • First mover advantage often retains market share even when new products enter the market from other manufacturers.
    • No home carbonation system is a one-size-fits-all system.
    • Distribution models will aid in product adoption.
  • Modine Manufacturing - Signs Of A Better Future?
    MOD Mon, Aug. 18, 10:45 AM 60° North Investments Comment!

    Summary

    • Modine has had lousy ROICs in the past but might be showing some signs of a better future.
    • Restructuring expenses and impairment charges have been large in the past, whether the future is similar or not makes a big difference in the valuation.
    • The company’s figures have been very lumpy besides gross margins, which have been stable around 15% for the past 7 years.
  • Don't Bet On A Quick Rebound For Lululemon Athletica
    LULU Mon, Aug. 18, 9:55 AM George Hanley 4 Comments

    Summary

    • Lululemon Athletica continues to struggle with rising costs, partly due to rising competition in the female athletic apparel space, which has limited its profit growth over the past year.
    • The lower profit trajectory, relative to the average of the past five years, has led to a sagging stock price for Lululemon Athletica, as investors adjust their expectations.
    • Despite its discounted price, management's characterization of 2014 as a transitional year doesn't bode well for a higher market valuation in the near term.