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Don Dion

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  • Avoid IPO Of Aspen Aerogels: CEO Knows How To Get Paid And Lose Money
    Wed, Jun. 11 CBT, NEE, OC 2 Comments

    Summary

    • Massachusetts-based ASPN, a designer and manufacturer of aerogel insulation for energy infrastructure facilities, plans to raise $100.0 million in its upcoming IPO.
    • While ASPN has expanded its revenues fairly successfully since 2008, the firm is still a long way from profitability and will continue accumulate a deficit for some time.
    • We recommend investors wait on this IPO. CEO may be excessively compensated.
  • IPO Of Memorial Resource Looks Hot
    Wed, Jun. 11 MRD 3 Comments

    Summary

    • Primarily North-Carolina-based MRD plans to raise $612.0 million in its upcoming IPO.
    • An oil and gas E&P, MRD posted a loss for the first quarter of 2014, but a pro forma net income of $56.7 million for calendar 2013.
    • In an unpredictable industry, but with very strong underwriters, we suggest investors consider buying into this IPO.
  • IPO For Abengoa Yield PLC Looks Exceptional
    Wed, Jun. 11 ABY Comment!

    Summary

    • ABY is a dividend growth-oriented firm, formed to own, acquire, and manage contracted revenue-generating assets for Abengoa S.A.
    • ABY plans to raise $600.6 million in its upcoming IPO, at an expected price range of $25-$27 per share.
    • We are positive on this IPO; pricing at the midpoint of the expected range will provide a solid 4.0% annual yield.
  • Former Deutsche Bank Trader Fined $17 Million, Scandal Continues
    Wed, Jun. 11 DB 1 Comment

    Summary

    • The UK’s Financial Conduct Authority recently fined Deutsche Bank trader Christian Bittar $17 million for trying to rig the benchmark interest rate.
    • This is the latest in a series of public incidents involving Deutsche Bank, along with very poor Q1 results and market declining performance YTD.
    • While some suggest Deutsche Bank is at a turnaround point, we are not yet convinced DB is a buy in 2014.
  • IPO For Trinseo S.A.: Strong Market Presence, Worrying Levels Of Debt
    Wed, Jun. 11 TSE 2 Comments

    Summary

    • TSE, a manufacturer and marketer of specialty emulsion polymers and plastics, plans to raise $180.0 million in its upcoming IPO.
    • Despite a strong market presence, TSE did not turn a profit in calendar 2013 and has significant debt levels.
    • We recommend investors consider waiting on this IPO.
  • IPO For MobileIron: Not Yet A Buy
    Tue, Jun. 10 MOBL 4 Comments

    Summary

    • MOBL, provider of a mobile IT platform, designed to secure and manage mobile apps, content and devices, plans to raise $100.0 million in its upcoming IPO.
    • MOBL has posted quickly increasing revenues over the past three years, yet competes with some of the biggest tech firms worldwide.
    • We suggest investors hold off on MOBL’s IPO, given a tough environment for tech stocks, stiff competition, and MOBL’s overpaying its executives, while the firm still has to prove itself.
  • Advance Your Career With Zhaopin Ltd. IPO
    Tue, Jun. 10 ZPIN Comment!

    Summary

    • ZPIN, a leading Chinese online career platform, plans to raise $75.7 million in its upcoming IPO.
    • ZPIN’s lead site, zhaopin.com, received the most average daily unique visitors of any career-oriented website in China for each month of 2013.
    • Given ZPIN’s profitability and scale, along with the favorable environment for Chinese IPOs lately, we recommend investors buy into ZPIN in the proposed range.
  • Icahn's Stake Likely Not Enough To Change Things For Family Dollar Shareholders
    Mon, Jun. 9 DG, WMT, FDO 3 Comments

    Summary

    • Billionaire Carl Icahn announced a 9.4 percent holding in FDO, with plans to seek strategic changes in management.
    • Icahn has recently been mired in rumors of insider trading, which could dampen his influence in turning FDO around.
    • Given the US economic recovery, we are not confident macro trends favor FDO either, and suggest investors hold off on taking positions, despite Icahn’s stake.
  • L.A. Loses Millions To JPMorgan's Discriminatory Loans
    Mon, Jun. 9 MS, PNC, JPM 25 Comments

    Summary

    • The City of Los Angeles recently sued JPM for discriminatory mortgage lending, saying JPM's practices were directly responsible for increasing foreclosure rates for minority borrowers.
    • As a result of foreclosures, the city lost $481 million in property taxes.
    • Given JPM's poor results YTD, along with this latest shameful incident, we reiterate that JPM shareholders take profits.
  • Putin's Risks = Russia's Decline
    Mon, Jun. 9 RSX 9 Comments

    Summary

    • As Putin pursues an aggressive agenda in Eastern Europe, Russian stocks are now more volatile than at any time since 2009.
    • Russia also uses opaque, questionable accounting practices, compared with what many investors are accustomed to.
    • We recommend investors steer clear of this emerging market in 2014 unless Putin changes course.
  • Google Satellites: Hovering Over Billions Of Potential New Users
    Mon, Jun. 9 FB, GOOG 10 Comments

    Summary

    • Google plans to invest $1billion in a fleet of 180 satellites to bring faster, cheaper Internet to rural and developing areas.
    • Google’s initiative dovetails with Facebook’s similar push, Internet.org.
    • The power of Google’s satellite fleet to boost search hits is enormous; this, combined with solid fundamentals, and exciting acquisition targets, keep us positive on Google stock in 2014.
  • World Grows Brighter For UBS With Their Darkest Pool
    Mon, Jun. 9 BCS, CS, MS 5 Comments

    Summary

    • FINRA released its first weekly report on trading volumes in dark pools, with UBS, the largest trader by volume.
    • In a difficult trading environment, particularly for large banks, this increased measure of transparency could restore a measure of faith in UBS’ activities by current and potential investors.
    • Given UBS’ increasingly strong fundamentals and competition with megabank rivals, we are positive on UBS' outlook in 2014.
  • Tesla Is Still Sexy, Even Without The E
    Sun, Jun. 8 TSLA 132 Comments

    Summary

    • A trademark issue with Ford caused Tesla to rescind the name Model ‘E’ from its Model S and Model X lineup.
    • Despite the hiccup, Tesla is looking as sexy as ever, with solid stock performance in 2014, closer moves to opening its gigafactory, and expansion in Europe and Asia.
    • We are positive on Tesla stock going forward; investors might also consider buying into Panasonic, which could gain from Tesla’s increased battery production.
  • Quiet Period Expiration For Parsley Energy Offers New Buying Opportunity
    Fri, Jun. 6 PE 14 Comments

    Summary

    • The quiet period expiration for PE occurs June 16, allowing underwriters to release positive information on the firm into the market, starting June 17.
    • PE’s early market performance has been small but consistent, and the company’s very strong underwriters could likely influence the price upward on June 17.
    • We recommend this event as a buying opportunity for PE.
  • General Motors Fires 15 Employees For Incompetence And Neglect, Mary Barra In Severe Pain
    Thu, Jun. 5 GM 24 Comments

    Summary

    • GM CEO Mary Barra recently fired fifteen (many senior) employees, following a company report revealing negligence in addressing faulty ignition issues.
    • Corporate restructuring will likely continue to drag GM down, compared with rivals, and could accelerate GM’s stock decline in 2014.
    • We reiterate our stance that investors should take profits in GM at this time.
  • Heritage Insurance Holdings IPO Quiet Period Expiration Provides Strong Buying Opportunity
    Thu, Jun. 5 HRTG Comment!

    Summary

    • The quiet period for HRTG expires June 17, at which time, the IPO underwriters will likely release detailed positive research reports on the company into the market.
    • Often, quiet period expirations lead to a short-term increase in the price of shares.
    • We suggest investors consider HRTG today.
  • Jack Daniels And Jim Beam Go Down Easy In 2014
    Thu, Jun. 5 BF.B, STBFY Comment!

    Summary

    • BF.B and BEAM are both proving to be highly versatile and popular brands YTD.
    • Significantly increased sales in developing markets have driven both companies into 2014.
    • These trends show no sign of slowing; investors should be positive on both brands moving forward in 2014.
  • Warren Buffett Was Right: Gold's Freefall: Look Out Below!
    Thu, Jun. 5 IAU, GLD, SGOL 55 Comments

    Summary

    • Gold has again proven its intuitive behavior—falling as tensions in Eastern Europe ease slightly.
    • On Friday May 30, gold futures lost nearly 1%, a trend that shows no signs of reversing.
    • This behavior reflects whimsical valuation, of which investors should be very wary as trends continue in 2014.
  • SunEdison Semiconductor IPO Quiet Period Expiration Could Open Buying Opportunity
    Wed, Jun. 4 SEMI Comment!

    Summary

    • The 25-day SEC-enforced quiet period on SEMI will expire on June 16, allowing the firm's IPO underwriters to distribute research reports.
    • These reports will likely be positive, giving a temporary boost to an otherwise quiet stock post-IPO.
    • We recommend this event as a short-term buying opportunity.
  • Arista Networks IPO Could Hit The Clouds
    Tue, Jun. 3 ANET 15 Comments

    Summary

    • Santa Clara-based ANET, provider of cloud networking solutions, plans to raise $199.5 million in its upcoming IPO.
    • ANET has expertly managed rapid revenue growth, converting growth to immediate profitability and increasing its end-use customers substantially.
    • We recommend the ANET IPO as a Buy, despite strong competitors and tricky situation for tech investors.
  • Will Apple Outsmart Google In 'The Internet Of Things'?
    Tue, Jun. 3 GOOG, GOOGL, SSNLF 26 Comments

    Summary

    • Rumors that Apple will also enter the smart home market has brought renewed interest at a time when some worry that growth has plateaued.
    • The smart home is envisioned as one where security systems, lighting and household appliances could be controlled from the user’s smartphone.
    • We see this as a positive step for Apple, in light of growing demand for energy efficient solutions, and solid fundamentals in 2014 and historically.
  • Investors Should Book An Upcoming Short Opportunity For The June 10 Lockup Expiration At Hilton
    Tue, Jun. 3 HLT 2 Comments

    Summary

    • The 180-day lockup period on HLT will conclude on June 10.
    • At this time, major pre-IPO shareholders will be able to sell their outstanding shares in the iconic hotel chain, likely affecting a supply shock and temporarily depressing the stock price.
    • Given HLT’s recent strong results, we suggest this as a temporary short window, followed by a buying opportunity.
  • Energetic Moves For Google
    Tue, Jun. 3 GOOGL, GOOG 4 Comments

    Summary

    • Google is positioning itself to enter the utilities industry as an energy provider.
    • Potential is enormous with ~$400 billion in annual revenue generated by the retail power industry and changing regulations leaning in support of energy efficient solutions.
    • Despite lower than expected results from Google YTD, we suggest investors stay positive on the stock, given this 'energetic' development.
  • Bogey For Carl Icahn? Insider Trading Probe Slows Course Of His Success
    Mon, Jun. 2 IEP 7 Comments

    Summary

    • The FBI and the SEC are probing the trading activities of Carl Icahn for possibly providing insider information to Phil Mickelson, the legendary golfer, and William Walters, the Las Vegas gambler.
    • If accused and/or found guilty, this could complicate Icahn’s long and successful career and hinder his weight when speaking out for or against corporations.
    • Investors should consider taking profits in Icahn’s holding company, IEP, as growth could slow on this news.
  • BNP Paribas May Be Fined $10 Billion For Sanctions Violation, Stock Plummets, Heads Need To Roll
    Mon, Jun. 2 BNPQY 4 Comments

    Summary

    • BNP Paribas, France’s largest bank, is facing a potential $10 billion penalty for sanctions violations.
    • This has raised concerns that the bank would need to be re-capitalized post-settlement, and that customers could begin to take their money elsewhere.
    • We recommend investors sell BNP, given the uncertain outlook and stock decrease.
  • Wal-Mart Slammed By Institutional Shareholders Services, Time To Sell
    Mon, Jun. 2 WMT 24 Comments

    Summary

    • The ISS, advisors to institutional investors, opposes Wal-Mart CEO's re-election and criticizes board for doing little to rectify possible violations of foreign bribery probes in Mexico.
    • In addition to strong negative press, sales have declined consistently.
    • We recommend investors sell Wal-Mart and look for more profitable and ethical retailers.
  • Peabody Coal Already Hit By Obama's New Emissions Standards
    Mon, Jun. 2 BTU 15 Comments

    Summary

    • The US EPA is planning to set comprehensive limits on emissions for each state.
    • The stock of the biggest emitters, like Peabody Energy, have already declined on the news.
    • Although ramping up operations in China could compensate for Peabody’s limits domestically, we suggest investors short BTU before the decline accelerates.
  • General Motors' Ignition Switch Victims Speak Louder From The Grave Than The Company
    Mon, Jun. 2 GM 52 Comments

    Summary

    • GM's questionable response to the deaths caused by its faulty ignition switches has amplified the damages to the company.
    • GM has refused to disclose information about the accidents in question and have shown reluctance to talk to accident survivors and relatives.
    • As GM's competitors continue to grow and innovate, GM is mired in negative publicity and legal battles; we suggest investors take profits now.
  • Thai Stocks Shine Despite Turmoil Caused By Military Takeover
    Mon, Jun. 2 THD 2 Comments

    Summary

    • On May 28, the Stock Exchange of Thailand rose by nearly 1 percent, despite a military takeover.
    • Standout stocks include the iShares MSCI Thailand Capped ETF and Bumrungrad Hospital.
    • We believe investors should stay confident in this fast-growing country and consider taking positions in the above-mentioned stocks, given their consistent strength.
  • General Electric Not Giving Up On Shareholders As Alstom Deal Comes Within Reach
    Fri, May. 30 SIEGY, GE 33 Comments

    Summary

    • The French government has laid out three specific stipulations for GE if it acquires Alstom, a clear signal that the French are softening to the bid.
    • Rival Siemens has not yet announced an official takeover offer, leaving GE as the sole bidder.
    • GE has recovered well from past failed acquisitions, and given already strong growth indicators, we recommend investors take a piece of GE with or without Alstom.
  • Bank Of America Is Now Worse Off Because Of Macro Trends And Internal Struggles
    Fri, May. 30 BAC 102 Comments

    Summary

    • A tough, correlated lending and trading environment has made it even more difficult for BAC to recover YTD.
    • BAC also faces billions in fines in the National Mortgage Settlement and a sullied public image.
    • We reiterate our stance that investors should sell BAC.
  • Chinese Online Cosmetics Companies Looking Glam In 2014
    Fri, May. 30 VIPS, JMEI 5 Comments

    Summary

    • China's beauty-products industry has grown steadily in the last couple of years.
    • JMEI and VIPS both show growing users and significant stock appreciation.
    • A growing middle class, more women in the Chinese workforce, and an enormous internet community combine to suggest the industry will only continue to grow in 2014.