An Update On The Stocks We Cover

|
Includes: CAB, JAH, JOY, LNKD, NWL, WLB
by: Forward View

Summary

We present a brief update on the stocks we currently cover.

Our formal coverage list will be expanding in the Spring with a focus on the sporting goods sector.

Both Joy Global and Westmoreland Coal will be affected by who wins the White House in November. A coal-friendly Republican administration would be welcomed by both companies.

Click to enlarge

OUR FORMAL COVERAGE

TICKER

NAME

RATING & VIEW

CAB

Cabela's

Hold. $47 price target. The real question here is whether Cabela's is bought for $55 a share (our estimate) or if no deal occurs and the stock drops back to our $36 intrinsic valuation per share. We're not convinced that a deal will happen. There's just a 60% probability of Cabela's being acquired in our view.

JAH

Jarden

Speculative Buy. $55 price target. Jarden will be merging with Newell Rubbermaid (NYSE:NWL) in 2Q16. Until the deal closes, Jarden shares will be tied to the price of Newell Rubbermaid stock. Here's a handy formula to remember when trying to calculate the value of Jarden shares: JAH = 0.862NWL + 21

JOY

Joy Global

Hold. $13 price target. Much of the company's future profits will depend on whether America elects a Democratic or Republican administration in November. Time will tell who wins the White House and until then, we suggest patience with Joy's shares. The stock will be a buy in the future, but just not yet.

LNKD

LinkedIn

Speculative Buy. $142 price target. LinkedIn's full-year guidance for 2016 was below the Wall Street consensus, and the stock was crushed. We're optimistic about buying at the current level because LinkedIn guidance is typically very conservative. Look for quarterly results to beat expectations.

WLB

Westmoreland Coal

Speculative Buy. $9 price target. We're probably going to sound like a broken record, but Westmoreland Coal is very different from other coal companies. Look for the stock to explode if a Republican administration is brought into the White House in November. (Valuation assumes a 2019 sale of the ROVA plant.)

Click to enlarge

Disclaimers & Disclosures

Analyst Certification: I, Nathan Yates, certify that the views expressed in this publication accurately reflect my personal views about the subject companies and their securities. I also certify that I have not, am not, and will not be compensated directly or indirectly in exchange for expressing any specific recommendation in this report.

Recommendation

Expected Return % or Range

Strong Buy

Shares are expected to deliver alpha of at least 10%

Speculative Buy

Shares are expected to generate at least 5% of alpha, but significant risk remains

Hold

Shares are expected to match the market's return

Underperform

Shares are expected to underperform by at least 5% on a risk-adjusted basis

Sell

Shares are expected to underperform by at least 10% on a risk-adjusted basis

Click to enlarge

Required Disclosures: Nathan Yates may or may not own long or short positions in securities mentioned in this report. As a matter of principal and ethics, he will not trade for three days in any security to be mentioned in any report. Occasionally, the time gap between a personal trade and an unanticipated event may be less. There is no known affiliate ownership in subject companies of this report. The firm does seek to sell research descriptions to publication corporations. No other known conflicts exist.

Important Disclosures: Forward View Consulting employs various equity valuation methodologies to develop investment ratings, target prices and conclusions. Certain risks to our ratings, target prices and ultimate investment conclusions exist which include, without limitation, a company's failure to achieve financial results, product risk, regulatory risk, general market conditions and volatility, interest rates, political factors, acts of God, terrorist activities and changing economic conditions. Forward View Consulting is not a registered investment advisor and is not acting as a broker-dealer under any federal or state securities laws. Notable compliance policies include (1) prohibition of insider trading or the facilitation thereof, (2) maintaining client confidentiality (3) appropriate use of electronic communications, amongst other compliance-related policies.

Disclaimer: Material provided in this publication is for educational purposes only, and was prepared from sources and data believed to be reliable, but we do not guarantee its accuracy or completeness. We cannot and do not guarantee the adequacy, accuracy or completeness of this information or the suitability or profitability of any particular investment. This publication does not consider the specific investment objectives, financial situation, or particular needs of any specific person or business, or any investment laws and regulations, regulatory capital requirements, or other restriction applicable to investments by certain institutional investors. Accordingly, you are responsible for your own investment research and decisions, and should seek the advice of a qualified fiduciary, and perform your own due diligence before investing. You should also consult your own legal advisor in determining the legality and consequences to you of the purchase, ownership, or sale of any investments. No information in this or any of our publications is intended as tax, accounting, or legal advice, as an offer or solicitation of an offer to sell or buy, or as a sponsorship of any company, security or fund. Past performance does not indicate or guarantee future performance and no representation or warranty is made regarding future performance. This publication reflects a judgment at its original date of publication by Forward View Consulting and is subject to change without notice. The price, value, and income from any securities or instruments mentioned in this report can fall as well as rise as a result of a host of factors including, but not limited to, economic, financial, and political factors, interest rates, stock market volatility, commodity price and exchange rate movements, weather, regulatory changes, changes in credit quality, acts of God, or terrorist activities.

This file is not for redistribution.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Editor's Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.