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Illustrating Why I Choose To Invest In IBM Post Earnings
- IBM's earning report was a bit lackluster as the shares sold off immediately after the release.
- IBM issued guidance for 2015 which indicates the shares are trading deep in value territory.
- A thorough examination of the press release is necessary to get a better understanding of the transformation of the business.
Illustrating Why McDonald's Is Undervalued At Its Current Share Price
- Shares of McDonald's have been stuck in a trading range over the past three years.
- The $100 level seems to be rarefied air for the company as it will slightly exceed the high from the previous year only to give it all back.
- Investors are naturally frustrated by the sideways pattern.
- The Create Your Taste initiative holds as much promise as the McCafe concept.
- A current investor can lock in a generous yield while waiting for the Create Your Taste platform to revive and grow sales and profits.
Illustrating Why I Choose To Invest In IBM Again
- IBM is a value play.
- The shares have under performed the market for the past two years.
- To further compound matters, the shares lost ground in 2014, angering many investors.
- I have decided to reinvest in the shares as will be outlined below.
Taking Advantage Of Foreign Market Weakness To Initiate A Position In Diageo
- Recent market weakness has battered shares.
- The weakness is more pronounced overseas, especially in Europe.
- As a value investor, bargains tend to emerge during prolonged periods of selling.
- Such is the case before us with Diageo. The article below will detail my bullish thesis on DEO.
Gilead Sciences' Recent Trading Pattern Is Much To Do About Nothing
- Shares of Gilead Sciences have been quite volatile over the past 8 weeks.
- Investors feared the decision by Express Scripts to exclude Harvoni would be followed by other insurance providers.
- With the recent announcement by Prime Therapeutics, I believe the fear is overblown.
- The next major catalysts will be in the first week of February, when GILD reports its earnings.
My Expectations For Citigroup In 2015
- Citigroup is clearly undervalued as they are trading at less than liquidation level.
- By trading at less than Tangible Book value a large margin of safety is offered to shareholders.
- All the ingredients are in place for a low risk play with above average gains.
- All Citigroup is waiting for is a catalyst.
AMC Entertainment Holdings Offers A Unique Way To Capitalize On The Drop In Energy Prices
- The collapse in the price of oil will have an outsized impact on the US economy creating a diverse group of winning and losing industries.
- By virtue of lower prices at the pump, additional discretionary funds will be readily available for consumers to spend as they see fit.
- The consumer discretionary sector will be the prime beneficiary of lower energy prices in 2015.
- In the article below, I will expand on my bullish thesis on AMC Entertainment Holdings Inc.
Gilead Sciences' New Contract Exclusivity Helps The Shares Advance
- The beginning of the trading year has been less than kind for the market bulls.
- Gilead Sciences bucked the down trend with a 2% advance.
- The equity outperformed coming off of the announcement of a exclusive deal with CVS Health for its revolutionary Hepatitis C franchise.
- The article will summarize my current thoughts on GILD..
Portfolio Changes For The Fourth Quarter Of 2014
- The fourth quarter saw an increase in volatility which caught many off guard.
- With an increase in volatility, some outstanding values emerged.
- The article below will detail the changes I have made in my portfolio.
Making The Difficult Decision To Part Ways With BP
- Geopolitical events have wreaked havoc on the energy market.
- BP is especially vulnerable due to their 19.75% stake in Rosneft.
- I have made the decision to limit losses and redeploy capital elsewhere.
Eastman Chemical Is An Attractive Play On The Rebound In Worldwide Economic Growth
- The chemical industry is an excellent way to play the bounce in economic growth.
- I am impressed with Eastman Chemical's management team as they have transformed the business.
- The shares are trading at a 20% discount to fair value as will be detailed below.
Verizon Currently On The Clearance Rack, Time To Buy
- Verizon is currently on sale as a price war has broken out in the telecom space.
- The sell-off in telecom shares offers a patient long-term investor an appealing entry point.
- As detailed below, I expect Verizon to return roughly 60% over the next five years.
Commentary On Gilead Sciences' Recent Plunge
- Gilead Sciences is selling off on the announcement of an exclusive deal excluding them from Express Scripts formulary.
- The stock has sold off more than twelve percent which I view as overdone.
- The article below will detail my thoughts on the recent sell-off.
Examining Gilead Sciences' Future Pipeline
- The drug pipeline is the lifeblood of all research-based companies.
- A thorough understanding of the potential embedded in a company's pipeline offers a glimpse into potential for future revenue and profits.
- Gilead Sciences currently has a real gem in development which I will detail below.
Walgreen Breaks Out To New Highs, Further Upside Ahead
- The recent stellar advance in the shares of Walgreen has made the recent market sell-off a bit easier to take.
- The shares have taken off upon the announcement of the current CEO's retirement once the Allied Boots merger is completed.
- I expect further upside ahead as detailed below.
Ensco: The Pain Is Far From Over Yet
- The sudden drop in the price of oil has severely damaged the share price of those in the energy sector.
- The offshore drillers have really taken it on the chin with most down over 50% for the year.
- Are we at an investable bottom, or is there further pain ahead.
- With Seadrill recently eliminating its dividend, how safe is Ensco dividend going forward.
Citigroup Breaks Out To A New High
- Friday's stellar jobs report lit a fire under financial stocks.
- It is becoming increasingly likely that the U.S. Federal Reserve will raise rates in 2015.
- I expect Citigroup will increase above its book value next year as conditions continue to improve.
How The Carnage In The Oil Patch Will Negatively Impact Railroads
- The recent carnage in the oil patch will reverberate onto the industries that service this sector.
- The railroad operators who service the frackers will be especially vulnerable to this phenomena.
- I am patiently awaiting for a bargain to emerge before investing capital into the industry.
How I'm Playing The Collapse In The Price Of Oil
- The sudden drop in the price of crude oil has caught many by surprise.
- The damage to the energy sector has been severe as the sector is showing losses for the year.
- Patience and perseverance is needed here as the down spike will be proven to be short lived.
Why Hormel Is Too Expensive At Its Current Price
- Hormel is a well managed company with an under-leveraged balance sheet.
- Hormel operates in the food processing industry in what can be considered a defensive play.
- My earnings per share growth model and DCF model both indicate the shares to be overvalued at its current price.
Has John Deere Reached A Cyclical Low?
- The best time to invest in cyclical companies is when they have reached an earnings trough.
- By waiting for the earnings trough, an investor is mitigating most of the risk in holding the shares.
- I suspect we will reach an earnings trough in 2015.
The FDA Breakthrough Designation Further Validates Regeneron's Pipeline
- A research based company's pipeline determines its fate going forward.
- Early positive clinical results can give an investor an early read as to the future path of the company's share price.
- The recent string of high profile successes have stoked my bullish fervor even more.
The Activist Stake In Hertz Continues To Rise
- Hertz released its updated guidance, which led to a steep sell-off.
- Thankfully for the longs the shares recouped much of the damage.
- The activists continue to up their stake, with Jana Partners increasing their stake to 8.3%.
Dispelling Some Of The Myths Surrounding Gilead Sciences
- Gilead Sciences has sold off recently over fears the company's growth prospects have dimmed.
- Gilead's best days are yet to come, as the money will continue to roll in.
- The article below will discuss the threat posed by AbbVie in greater detail.
Hertz Offers Tremendous Upside As A Turnaround Commences
- Opportunity comes to those who are patient and understand the challenges faced.
- The Hertz story is a bit complicated, yet once studied long enough, the opportunity becomes clear.
- The recent sell-off was very overdone, as many panicked.
David Winters Ravages Coca-Cola's Board Once Again, Stating The Dividend Is At Risk
- David Winters is at it again, taking offense to Coke's newly released executive compensation package.
- Winters is some one to watch as he successfully pressured the board to amend the pay package.
- He even shamed Warren Buffett into abstaining from voting for the plan.
- Is he serious when he states the dividend could be at risk?
Regeneron Pharmaceuticals Offers More Upside Than Gilead Sciences
- Regeneron continues to perform as the shares continue their ascent higher.
- The company's main compounds continue to show significant promise in Phase III testing.
- Sanofi holds over 20% of the shares outstanding offering a built in suitor if the compounds deliver on their promise.
- I expect the shares to potentially outperform Gilead Sciences in 2015 as will be detailed below.
Illustrating Google's Fair Value
- The internet search giant has sold off quite a bit since hitting all-time highs earlier this year.
- A cash flow analysis was constructed to determine the fair value of the shares.
- Google is currently undervalued at its current quote, which makes the shares a compelling buy.
General Mills Has Become Interesting Again
- All great companies hit a temporary rough patch.
- The key for a long-term investor is to identify those who have entered into a rough patch and build a position in them.
- Typically, you will be acquiring shares at a discount to their true worth, which will enhance long-term gains going forward.
- Such is the opportunity before us in General Mills as will be detailed below.
Re-Examining My Bullish Thesis On Walgreen
- Walgreen has recouped quite a bit of the share price it lost in August.
- Investors were quite short-sighted, in my opinion, in dumping shares of Walgreen.
- By not pursuing a tax inversion deal, management has been validated by recent Treasury department rule changes making the move less advantageous.
- The shares continue to offer a compelling, low-risk play in the healthcare field.
Did Gilead Sciences Really Disappoint With Its Earnings Announcement?
- Shares of Gilead sold off after what some termed a disappointing earnings release.
- There is plenty to like in the earnings release.
- I suspect Gilead will beat fourth quarter numbers as some patients put off treatment to await the approval of Harvoni.
Can Activist Pressure Lead To Better Results At McDonald's?
- McDonald's continues to struggle.
- Bloomberg reported that the Golden Arches may become an activist target.
- The article below offers my thoughts on the matter along with a discussion on some of the company's new initiatives.
- I have updated my fair value model to more accurately reflect McDonald's earnings for 2014.