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  • Melco Crown Has Been Facing Challenges
    Thu, Dec. 4 MPEL 6 Comments

    Summary

    • Melco Crown’s topline witnessed a double-digit drop of 10% in the third quarter of 2014 and reported absolute revenues of $1.12 billion.
    • According to Fitch Ratings, the company’s Macau revenue will be flat for 2014 and fall 1% in 2015 as traffic remains under pressure.
    • The recent anti-corruption campaign in China and cooling down of the Chinese economy are giving the company a hard time.
    • Japanese law makers have postponed the legalization of casinos for an indefinite period.
  • Union Pacific Is A Fortified Business With Long-Term Prospects
    Wed, Nov. 19 UNP 3 Comments

    Summary

    • UNP is part of the backbone of the US economy. Its shares delivered a 52% price return in one year, beating the Dow Jones Transportation Average and S&P 500.
    • UNP reported strong financial and operational performances during the third quarter of 2014. The company is part of a stable railway industry that enjoys high-entry barriers.
    • Railway is expected to remain the most feasible mode of terrestrial transport. The consensus target price reveals upside and the decent dividend yield makes it an attractive investment.
  • Johnson Controls - A Strong Business To Buy
    Tue, Nov. 18 JCI 1 Comment

    Summary

    • JCI is a strong business and a leading innovator that has long-term prospects. It beat the EPS consensus and reported a healthy financial performance for the fourth quarter of 2014.
    • The forecasted urban explosion will bring about healthy growth opportunities for JCI as it innovates and produces leading building efficiency technologies.
    • The consensus target price and relative valuation reveal attractive upside so those with long-term investment perspectives should consider the company for investment.
  • Mondelez International - Aiming For Growth
    Sun, Nov. 16 MDLZ Comment!

    Summary

    • Mondelez seems to be on the right track to achieving its aim of revenue growth and margin expansion. The third quarter results brought reasons to remain hopeful.
    • Mondelez needs to improve its performance in the Asia Pacific region by developing a strategy to improve revenue growth in the region.
    • Mondelez’s acquisition of Vietnam’s largest snack food company is a good move to improve its penetration in the Asia Pacific region.
  • Devon Presents A Nice Investment Opportunity
    Fri, Nov. 14 DVN 1 Comment

    Summary

    • Devon’s stock price recently jumped by approximately $7 per share. The increase was primarily attributed to the better than expected quarterly results.
    • The company also completed its portfolio transformation. With the successful transformation, the company’s asset portfolio is now focused on rich resource plays in North America.
    • The company has been successfully curtailing its costs. It reduced its total expenses as a percentage of revenues to only 66.7 percent from the previous year’s 73 percent.
  • Delta Air Lines - The U.S. - China Visa Deal
    Fri, Nov. 14 DAL 3 Comments

    Summary

    • Delta Air Lines Inc. expects to benefit from the new US-China visa policy. This new visa policy will allow short-term visa extensions of up to ten years for both countries.
    • Delta Air Lines is in a strong position to capitalize on the forecasted growth in air travel in the next two decades which should create value for investors.
    • Delta Air Lines has strengthened its business in the past few years. The consensus target price and relative valuation advocate that DAL is an attractive long-term investment.
  • Clorox Seems To Be On The Right Track
    Thu, Nov. 6 CLX 1 Comment

    Summary

    • Clorox’s decision to exit from its Venezuelan business is considered a step that will ensure bright long-term growth prospects.
    • The company also declared its earnings guidance for fiscal year 2015 and expects margin improvement.
    • The company has been pursuing a long-term strategy aimed at growing its revenues, expanding margins, and increasing free cash flows by 2020.
    • The company has a history of returning cash to its shareholders. Moreover, with the recently enacted measures it seems that it will further improve its returns.
  • Kroger: A Long-Term Investment Candidate
    Thu, Oct. 16 KR 2 Comments

    Summary

    • Kroger registered top line gains of 11.60% due to the combination with Harris Teeter, more households shopping at Kroger, increase in transaction count and higher product pricing.
    • The company was able to witness an improvement of 8 basis points in its gross margin during the second quarter in 2014 which clocked in at 20.54%.
    • Operating profit margin had plunged to 2.54% as a proportion of sales in the second quarter of 2014 from 2.62% during the same period last year.
    • Immediate short-term liquidity position is weak. However, long term survival may not be an issue as Kroger is generating CFO that covers up to 40-45% of long term debt.
    • The stock’s P/E based valuation represents a capital return potential of approximately 46%.
  • Target: A Doubtful Investment
    Thu, Oct. 16 TGT 20 Comments

    Summary

    • The shift to e-commerce is pressuring the company’s margins, and Target needs to put in additional efforts to counter the downfall in its in-store shopping.
    • To regain its lost market share, the company has cut its prices due to the cutthroat competition it continues to face from Wal-Mart's “everyday low prices” strategy.
    • Target also has plans to remodel its stores and focus on smaller-format stores in an attempt to cater to the needs of urban shoppers.
    • The payment of dividends has been curtailed for now on the back of the cash flow required for the land development project.
    • Although the company is taking steps to amend the situation, a lot is still unclear, which makes investment in this stock a bit doubtful.
  • Carnival Corporation: A Decent Investment
    Sun, Oct. 12 CCL 5 Comments

    Summary

    • CCL is the world’s largest cruise company with a huge presence in key tourist markets. It is positioning itself to capitalize on the growth of the Chinese cruise market.
    • Relocating COO Alan Buckelew to China and capacity expansion are two strategies that will help fuel the company’s growth.
    • Carnival’s fuel conservation program will continue to help reduce costs and will support its profit margins.
  • Time Warner Inc. And The Appeal Of HBO
    Sun, Oct. 12 TWX Comment!

    Summary

    • With its proven abilities Time Warner Inc. is in a strong position to capitalize on the growing demand of quality entertainment content. This makes the company a long-term investment.
    • HBO carries about 30% of Time Warner’s total value and has good growth potential. The company plans to invest in growth areas including the marketing of the HBO brand.
    • These investments are likely to create value for the company’s shareholders. The stock has the combined attributes of growth and value stocks.
  • China Mobile Limited Needs To Improve Profit Margins
    Thu, Oct. 9 CHL 1 Comment

    Summary

    • China Mobile Limited is a stable business with obvious strengths. However, it has been experiencing slow top line growth and negative bottom line growth in the previous years.
    • The company is investing to capitalize on the growth in data services. It is also trying to preserve the value of traditional voice services that are exhibiting slow decline.
    • The stock reported a good performance in the past six months. The dividend yield is high and the consensus target price reveals upside.
  • Canadian Pacific Railway Limited: A Long-Term Stable Growth Investment
    Thu, Oct. 9 CP 4 Comments

    Summary

    • CP is an efficient railway company that is a good investment choice for investors that want to gain long-term exposure in the railway industry that enjoys wide economic moats.
    • CP has announced ambitious multi-year top and bottom line growth targets. It can achieve these targets since it has the proven ability to improve its operational and financial performances.
    • The consensus target price reveals upside potential. The stock price performance has been impressive and pays out dividends at low yields making the company an attractive long-term investment.
  • Noble Energy: Delivering Long-Term Production Growth
    Sun, Oct. 5 NBL 2 Comments

    Summary

    • Noble Energy is all set to deliver production growth at a Compound Annual Growth Rate (CAGR) of 18 percent up until 2018.
    • Both onshore and offshore operations are expected to contribute to the increased production growth.
    • The company recently announced its entry into the Gabon coastal basin. The move will allow the company to diversify its global portfolio of assets.
    • In addition, the strategy to expand in the Gulf of Mexico yielded desired results and has resulted in Katmai’s reserves increasing by approximately 10 MBOE.
    • The diversified portfolio of both the international and national assets will help the company to generate significant cash flows.
  • United Continental Holdings: An Attractive Long-Term Investment
    Sun, Oct. 5 UAL 1 Comment

    Summary

    • UAL is a leading airline working on a multi-pronged strategy to realize cost savings and boost profitability. UAL expects to realize $2 billion in annual costs saved by 2017.
    • UAL has decreased its debt level in recent years and that has decreased its interest payments by nearly 30%.
    • UAL plans to decrease its debt further which would decrease its fixed costs and risks.
    • UAL is well placed to capitalize on the growth in global air travel. The consensus target price and relative valuation reveals attractive upside for growth investors.
  • Walgreen Co.: A Consumer Defensive Stock That Is Worthy Of Long-Term Investment
    Thu, Oct. 2 WAG 1 Comment

    Summary

    • Walgreen's acquisition of Alliance Boots will open doors to international expansion. With its strong brand and business model, Walgreens has the capacity to deliver long-term growth.
    • Walgreens is a strong business that managed to keep its margins stable to allow top-line growth to trickle down to EPS. It has a healthy EPS growth outlook for 2016.
    • Walgreens is expected to share its success with its shareholders through generous dividends and repurchases. The consensus target price reveals healthy upside at its current price level.
  • Canadian National Railways Company: A Business With High Protection Barriers
    Thu, Oct. 2 CNI 4 Comments

    Summary

    • CNI is a stable business that enjoys high protection barriers. High barriers are inherent to the railway industry making the companies operating in the industry long-term and stable investments.
    • CNI received recognition as a sustainable business by gaining a place in the Dow Jones Sustainability World Index.
    • The consensus target price and relative valuation measure indicate the fact that the company is under-appreciated by the market.
    • The growing dividend and share repurchase program makes it an attractive investment.
  • Yum Brands Is A Worthy Long-Term Investment
    Mon, Sep. 29 YUM 1 Comment

    Summary

    • YUM is a strong business that has exposure in both the developed and developing markets. YUM is expanding into emerging markets where consumer spending is growing at healthy rates.
    • YUM plans to expand its restaurant chains in emerging markets to 20,000 by 2020.
    • YUM has opened its first Pizza Hut in South Africa and plans a chain expansion in the coming years.
    • YUM’s dividend yield is higher than the dividend yield of the S&P 500.
    • The consensus target price indicates that long-term value investors should take a position in YUM at its current price level.
  • Precision Castparts Corp: An Attractive Long-Term Investment
    Sun, Sep. 28 PCP 5 Comments

    Summary

    • Precision’s Aerospace segment as a percentage of total business grew in recent years. Precision’s capabilities will allow it to earn its share in the forecasted $4.84 trillion demand for airplanes.
    • It has relentless cost focus and managed to improve its gross and operating margins considerably in the past ten years.
    • The consensus target price reveals an attractive upside at the current price. Relative valuation also indicates the undervaluation of stock.
  • Staples For Income Investors
    Sun, Sep. 28 SPLS 2 Comments

    Summary

    • With digital computing on the rise, the demand for the company’s products has been reduced considerably.
    • Amazon and Wal-Mart have significantly impacted the company’s sales.
    • The company is presently in the process of shutting down 140 of its stores by the end of FY2014.
  • Whirlpool Corporation: A Consumer Cyclic Stock
    Thu, Sep. 25 WHR Comment!

    Summary

    • Whirlpool is a leading appliance manufacturer and innovator with a huge global presence. It is well positioned to reap the growth from the recovering appliance demand in the US.
    • Whirlpool’s products have a huge global market. Whirlpool is strengthening its position in the emerging consumer market of China by acquiring a 51% stake in Hefei Sanyo.
    • The investment in China will allow the company to capitalize on the giant Chinese market. The consensus target price reveals upside potential at the stock’s current price level.
  • Enbridge: Invest In A Stable And Growing Oil And Gas Business
    Tue, Sep. 23 ENB 4 Comments

    Summary

    • Enbridge, with its huge distribution network, plays a crucial role in the functioning of the North American economy.
    • Enbridge is investing heavily to benefit from the growth in North American oil and gas production. Healthy growth in the top and bottom lines and shareholders value is expected.
    • Enbridge has reported consistent and growing EPS and dividends. It beat the index and produced superior returns to shareholders. The consensus target price reveals upside at its current price.
  • Reynolds American Has Fading Long-Term Prospects
    Tue, Sep. 23 RAI 11 Comments

    Summary

    • Tobacco smoking has decreased in the US over the past years. The decreasing trend in smoking is recorded among both adult and high school students.
    • With the growing awareness about the harmful effects of smoking, Reynolds is facing a stagnating top line. Its share price return lagged the indices during the past year.
    • The acquisition of Lorillard will add the Newport brand to Reynolds’ portfolio.
    • However, the Newport brand appears to be a sinking ship with a large market share but little growth potential.
  • Devon Energy Corporation: An Attractive Oil And Gas Investment
    Sat, Sep. 20 DVN 10 Comments

    Summary

    • Devon is one of the leading oil and gas companies with a strong presence in some of the most prolific US oil regions, including Permian Basin and Eagle Ford.
    • Devon is well placed to capitalize on the growth in US oil production.
    • It managed to generate 79% YOY growth from the US plays during the second quarter of 2014.
    • Devon is a financially stable company that is positioning itself for growth by bringing focus to its business.
  • Cabot Has Strong Reserves And Production Growth
    Fri, Sep. 19 COG 9 Comments

    Summary

    • The analysts at Stifel research firm recently upgraded the company from hold to buy. The firm also believes that the company offers a nice upside potential of 18%.
    • The Marcellus and Eagle Ford shales continue to benefit in the long term as the company has been pursuing an active drilling program.
    • With these assets the company is well positioned to deliver production growth of 20% to 30% by 2015.
    • In addition to the increased production the company is also putting efforts into strengthening its reserve base.
    • During the past three years the company delivered production growth at a CAGR of 26%.
  • EQT Corporation: An Efficient Business With Attractive Upside Potential
    Thu, Sep. 18 EQT Comment!

    Summary

    • EQT Corporation, a strong player in the oil and gas sector, has attained healthy growth in proven reserves at a CAGR of 20% over four years.
    • EQT is among the leading operators in one of the most prolific regions of North America. This gives EQT promising growth prospects.
    • EQT’s midstream business has reported a strong financial performance. EQT is one of the most efficient operators with leading cost metrics.
    • EQT is investing heavily to capitalize on growth opportunities in its production and midstream segments. The consensus target price reveals very attractive upside potential.
  • Gap Offers Good Upside Potential
    Wed, Sep. 17 GPS 4 Comments

    Summary

    • The Gap global segment is expected to put a downward pressure on the overall profitability of the company.
    • The company will open 40 new stores in India by partnering with Arvind Lifestyle Brand Ltd.
    • India’s apparel market is expected to grow at an aggregate rate of 15% per year through 2011-2020.
  • Continental Resources Is A Long-Term Investment Play
    Wed, Sep. 17 CLR 1 Comment

    Summary

    • The company has been pursuing a disciplined growth strategy aimed at tripling the production and reserves.
    • To do so, Continental Resources has been focusing on two leading oil weighted plays: Bakken Field and SCOOP.
    • The company has allocated $4 billion of the capital spending budget to carry on with the enhanced completion program.
    • The company was also able to increase the proved reserves by approximately 31 percent which signifies the company’s potential to secure higher production for years to come.
  • EOG Resources: There Is Still Time To Grow With The Growing U.S. Oil Production
    Mon, Sep. 15 EOG 3 Comments

    Summary

    • EOG Resources is the leading oil producer in the plays with the highest growth potential such as Eagle Ford and Bakken.
    • The growth in crude, condensate, and NGL production will continue at healthy double-digit rates in the leading plays where EOG is present.
    • The consensus target price reveals an attractive upside at its current price. EOG rewards shareholders with growing dividends. Investors should consider investing in EOG at its current price.
  • Concho Resource: An Attractive Growth Investment
    Mon, Sep. 15 CXO 3 Comments

    Summary

    • The Permian Basin is one of the most prolific oil plays in the US that has shown healthy production growth in recent years.
    • The present daily oil production in the Permian Basin is about 1.5 million barrels. Daily oil production is expected to reach 2.5-3.2 million barrels per day by 2025.
    • Concho is an efficient company that is capable of reporting strong financial performance. The consensus target price reveals a very attractive upside at its current price level.
  • The Growth Story Of Canadian Natural Resources
    Sun, Sep. 14 CNQ 11 Comments

    Summary

    • The company continues to enjoy the diversified locations of its assets that help it to reduce significant geopolitical risk.
    • With its diversified asset base, the company seems to be well positioned to deliver production growth at a CAGR of 9 percent in the next five years.
    • The increased production will help the company to generate significant free cash flows which will in turn help the company to increase shareholders return.
    • The company can be a good investment opportunity for growth seeking and value seeking investors.
  • Pioneer Natural Resources Will Benefit From Production Growth
    Fri, Sep. 12 PXD 3 Comments

    Summary

    • During the second quarter of 2014, Pioneer was able to beat its own production guidance primarily due to the successful increase of its horizontal drilling program.
    • The company also plans to double the number of wells from 68 in the first half of 2014 to 125 wells in the second half of the current year.
    • The increased operational efficiency coupled with management’s commitment to drill more wells means the company has revised the lower side of its production guidance.
    • Given the fact that the company has also allocated 63 percent of its $3 billion capital budget to its horizontal drilling program.
    • In addition, the company stands to benefit from the recent export approval by the U.S. Department of Commerce.