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Daniel James

 
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  • What's Going On At The Gap?
    Yesterday, 2:22 AM GPS Comment!

    Summary

    • The Gap has been experiencing something of a slowdown lately, after years of outperforming the industry.
    • Yet, management seems to be aware of the need to chase growth.
    • A new partnership in Europe should help the company achieve this, and with excellent management in place, it should be able to return to solid growth.
  • Best Buy Looks Strong Going Into The Holidays
    Tue, Nov. 25 BBY 1 Comment

    Summary

    • Best Buy's third quarter report showed evidence of a sustained turnaround.
    • With momentum expected to continue, the firm should be looking forward to a strong holiday quarter.
    • Trading at a reasonable multiple, the stock looks like it could deliver some upside over the next few months.
  • Home Depot Vs. Lowe's: Who Looks Better After Earnings?
    Mon, Nov. 24 HD, LOW 2 Comments

    Summary

    • America's two main home improvement chains reported earnings last week, which are as usual quite similar.
    • Although Lowe's is closing the gap, Home Depot is still ahead in terms of same-store sales growth.
    • As it also has a lower valuation, and higher expectations in terms of future growth, Home Depot looks like the best bet.
  • Not Buying The GameStop Turnaround Story Yet
    Sun, Nov. 23 GME 14 Comments

    Summary

    • GameStop came out with poor earnings, providing insufficient evidence a sustained turnaround.
    • The company also lowered guidance for the holiday season, which is a worrying sign.
    • I would recommend staying away for now.
  • Vipshop: Another Chinese E-Commerce Play Tanks On Solid Earnings
    Fri, Nov. 21 VIPS 4 Comments

    Summary

    • Like JD.com, Vipshop tanked after solid earnings.
    • It seems investors are no longer satisfied with these companies merely meeting estimates.
    • They continue to rally and maintain huge growth, but active investors could consider staying away during earnings reports.
  • Is JD.com A Buy After The Selloff?
    Wed, Nov. 19 JD Comment!

    Summary

    • Despite strong earnings, JD.com tanked following its recent earnings report.
    • Investors have come to expect enormous growth and the outlook disappointed.
    • Still, there are several reasons to be bullish on the company.
  • Cisco Pessimism Is Overdone
    Fri, Nov. 14 CSCO 2 Comments

    Summary

    • Analysts were disappointed by Cisco's lackluster guidance, which overshadowed an earnings and revenue beat.
    • However, the stock isn't expensive, and the company still has avenues left for growth.
    • As such, Cisco offers good value, a sentiment which was to some degree echoed by the rally on the day following the report.
  • How Long Does American Apparel Have Left?
    Thu, Nov. 13 APP 2 Comments

    Summary

    • Once again, American Apparel came out with poor results.
    • Litigation and settlement costs are weighing heavily on the bottom line.
    • Even disregarding these factors, the company has to address its dwindling sales or face bankruptcy.
  • Still No Good News From Abercrombie & Fitch
    Wed, Nov. 12 ANF 2 Comments

    Summary

    • Abercrombie & Fitch has been hit hard by the downturn in the teen fashion retail space.
    • Its business update for the third quarter was dismal.
    • Partly, this weakness is due to loss of market share to competitors like H&M.
  • Sprouts Delivers On Growth, But Valuation Remains A Concern
    Mon, Nov. 10 SFM Comment!

    Summary

    • Sprouts has been delivering excellent growth in a tough industry.
    • Yet, after losing a lot of ground this year, its valuation is still very high.
    • To make it a solid buy, it would have to shed some more value.
  • Mondelez Beats On Earnings, But Is Growth Drying Up?
    Thu, Nov. 6 MDLZ 1 Comment

    Summary

    • Mondelez delivered a huge earnings beat, sending shares higher.
    • However, the company is relying heavily on cost cutting and price hikes, as volume is down in many areas.
    • To sustain real growth, it will have to start growing volume.
  • Is AIG Really A Buy?
    Wed, Nov. 5 AIG 8 Comments

    Summary

    • AIG, one the great turnaround stories of the last decade, is often cited as a strong financial stock.
    • However, while book value is rising consistently, earnings growth is expected to slow down.
    • Its low valuation could propell the stock higher, although competitor Allianz is valued similarly.
  • Expedia Looks Good After Earnings
    Tue, Nov. 4 EXPE Comment!

    Summary

    • Expedia continues to deliver excellent earnings and revenue growth.
    • While the stock is richly priced, this isn't unusual for a high-growth company.
    • As it continues to invest in its business, earnings as well as share price should continue to rise.
  • GoPro: Do Results Justify Its Valuation?
    Mon, Nov. 3 GPRO 10 Comments

    Summary

    • GoPro is posting some impressive numbers, easily beating analyst estimates.
    • However, the valuation is so high that it's hard to make a long case for the stock.
    • As such, I would recommend staying away for now.
  • AutoNation Benefits From Solid Demand
    Mon, Nov. 3 AN Comment!

    Summary

    • Overall, the US car market is soaring.
    • AutoNation has managed to cash in, with strong results for its third quarter.
    • With an upbeat outlook for fiscal 2015, this performance is expected to carry over into next year.
  • Facebook Plummets On Soft Guidance, Time To Buy?
    Thu, Oct. 30 FB 26 Comments

    Summary

    • Despite a solid quarter, Facebook stock sold off following the report.
    • Investors were worried about rising costs and a tempered outlook.
    • With the growth story still intact, the selloff may provide an interesting entry point.
  • Buffalo Wild Wings Serves Up Another Quarter Of Solid Comps
    Wed, Oct. 29 BWLD Comment!

    Summary

    • Buffalo Wild Wings is growing rapidly, especially due to strong comparable restaurant sales.
    • In any case, this growth easily outpaces that of most companies in the casual dining space.
    • With aggressive expansion plans, the company should be able to maintain this positive momentum.
  • What's Behind America Movil's Earnings Miss?
    Mon, Oct. 27 AMX 1 Comment

    Summary

    • Telecom giant America Movil missed bigtime on earnings.
    • A large tax hike and forex headwinds were largely to blame.
    • Looking at sales and currency-neutral EBITDA, the business still looks healthy.
  • Security Software Makers Benefit From Strong Demand
    Fri, Oct. 24 CHKP, FTNT Comment!

    Summary

    • As data breaches continue to plague large corporations in the US and beyond, demand for security products is increasing.
    • Check Point and Fortinet have managed to benefit from this demand.
    • As the trend is expected to continue, assuming decent execution, the firms should continue to prosper.
  • Six Flags Beats On Earnings And Revenue, But Expenses Rise
    Thu, Oct. 23 SIX Comment!

    Summary

    • In some positive news, Six Flags managed to increase revenue steadily.
    • Much of this increase was driven by pricing, while rising costs put a damper on profits.
    • Looking ahead, the company is optimistic about earnings growth in the next few years.
  • Texas Instruments Bucks The Trend, So Far
    Wed, Oct. 22 TXN Comment!

    Summary

    • Earlier this month, Microchip came out with a revenue warning.
    • The company is regarded as a bellwether in the space, leading analysts to speculate about an industry correction.
    • So far, Texas Instruments does not seem to have suffered from lower demand.
  • Even The Mighty In Teen Fashion Retail Are Stumbling
    Tue, Oct. 21 GPS, URBN Comment!

    Summary

    • Earlier this month, the Gap came out with uninspiring results.
    • Now, Urban Outfitters too is suffering.
    • If even the outperformers of the industry are struggling, it may be wise to stay away from it altogether.
  • Barbie Continues To Drag On Mattel's Results
    Sun, Oct. 19 MAT 3 Comments

    Summary

    • Barbie dolls, the popularity of which was once undisputed, are facing a major slowdown in sales.
    • This is due to several factors, including the rise of electronic entertainment, the popularity of other toys, and perhaps also the backlash against Barbie's portrayal of beauty ideals.
    • In any case, these sagging sales are weighing heavily on Mattel's top and bottom line.
  • This Upscale Steakhouse Chain Is Benefiting From Strong Demand
    Fri, Oct. 17 DFRG Comment!

    Summary

    • Most of the focus within the restaurant industry has been on the fast-casual space.
    • However, some other chains are also doing well.
    • Upscale steakhouse chain operator Del Frisco's is recording solid growth, although it's trading at a bit of a premium right now.
  • It's Time To Get Hedged
    Thu, Oct. 16 SPY, IWM, RWM 5 Comments

    Summary

    • Markets are rolling over, some entering correction territory.
    • Active investors should consider hedging their long positions.
    • One of the easiest ways to do this is a short on an index ETF.
  • These BDCs Are Getting Seriously Cheap, But Why?
    Thu, Oct. 16 PSEC, AINV, ARCC 9 Comments

    Summary

    • Several BDCs have been selling off lately.
    • As a result, valuations are relatively low.
    • However, various headwinds could put continued pressure on these stocks.
  • Costco's Strategy For Staying Ahead Of The Pack
    Tue, Oct. 14 COST 1 Comment

    Summary

    • Once again, Costco delivered impressive results, finishing the fiscal year in style.
    • The company is outpacing its competitors in the space.
    • It has managed to benefit from a slow economic recovery by a focus on sales growth combined with steep discounts and a membership system.
  • Has The Gap Still Got Game?
    Mon, Oct. 13 GPS Comment!

    Summary

    • After years of outperforming the industry, growth at the Gap seems to be slowing down.
    • At the same time, a CEO switch has been announced.
    • New leadership focused on international and online growth could restore sales growth.
  • Samsung Warns Of Weak Third Quarter As Rivals Gain Momentum
    Tue, Oct. 7 SSNLF 7 Comments

    Summary

    • Samsung came out with a profit warning for the third quarter after disappointing in Q2.
    • Rivals are pinching the company's market share on both the high and the low end.
    • Apple's new iPhone is expected to put even more pressure on Samsung's sales.
  • Play Defense With Utility ETFs
    Mon, Oct. 6 JXI, VPU, XLU 2 Comments

    Summary

    • Many commentators believe that a correction is needed.
    • Defensive sectors such as utilities offer some protection during downturns.
    • These three utility ETFs can help balance a portfolio and decrease volatility.
  • Walgreen's Fourth Quarter Shows Healthy Comp Store Sales Growth
    Thu, Oct. 2 WAG Comment!

    Summary

    • Walgreen's has had a rough time recently, as investors worried over the Alliance Boots deal and a lowered outlook.
    • Recent figures showed considerable strength though, especially in sales growth.
    • With the Alliance Boots acquisition starting to pay off, the company looks well positioned for 2015, despite headwinds.
  • SYNNEX Looks Strong Going Into Earnings
    Sun, Sep. 28 SNX 3 Comments

    Summary

    • After hanging in the doldrums for a few years, SYNNEX looks like it's getting back to impressive earnings growth.
    • The first two quarters of the year were impressive, and with earnings coming in soon, the third looks like it could be another beat.
    • With this growth, coupled with a low forward valuation, the stock has room to rise.