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Don Dion

 
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  • NextEra Energy IPO Quiet Period Expiration Could Open A Clean Buying Opportunity For Investors
    Mon, Jul. 14 NEE, NEP 1 Comment

    Summary

    • July 21 marks the end of the 25-day quiet period on underwriter reports that began with the June 26 IPO of NEP.
    • On July 22nd, NEP’s strong underwriters, including BofA, Morgan Stanley, Goldman Sachs, Barclays, and Credit Suisse, will likely attempt to push NEP’s share price higher with positive research reports.
    • NEP has made solid gains post-IPO, has a good yield, growing business, and smart, experienced management.
    • We see NEP’s quiet period expiration as another opportunity to get a piece of its success.
  • Imprivata's IPO Quiet Period Expiration: A Buying Opportunity For Aggressive Investors
    Mon, Jul. 14 GE, MSFT, IMPR Comment!

    Summary

    • The 25 day quiet period on IMPR will conclude on July 19, allowing IPO underwriters to release reports on July 20th.
    • The detailed reports will likely be positive; and with such influential firms as J.P Morgan and Wells Fargo scheduled to initiate coverage, these could give IMPR stock a positive boost.
    • Given IMPR’s solid market performance, and the recent supportive environment for tech IPOs, we see the quiet period expiration as a good time to buy into this growing company.
  • Investors Should Go Big For GoPro's IPO Quiet Period Expiration
    Mon, Jul. 14 GPRO 75 Comments

    Summary

    • The 25 day quiet period on GPRO will come to an end on July 20, allowing GPRO’s underwriters to release (likely positive) research reports on the firm on July 21st.
    • This event could likely lead to a bump in the price of GPRO shares.
    • While concern exists if GPRO can maintain its current share prices long term, we don't believe the hype on this company will decline in the near-term.
    • Given GPRO’s strong, influential underwriters, and excellent product, we suggest the quiet period expiration as another great time to buy into this company.
  • Goldman Sachs Powers Up And Keeps Trading In A Tough Environment
    Mon, Jul. 14 GS 5 Comments

    Summary

    • GS has decided to maintain its central trading business, while competitors have taken steps back.
    • The rise of a competitor to GS's dark trading pool Sigma X, IEX Group, could benefit GS long-term, by bringing greater transparency and investor confidence to the entire sector.
    • GS has a strong wealth management business and other platforms, which could help float the firm during this time; the stock and results have maintained general strength.
    • We are positive on GS moving forward in 2014.
  • GM Sales Power Up With Help Of Recalls
    Sun, Jul. 13 GM 10 Comments

    Summary

    • Despite recall issues, GM posted higher sales number for the month of June.
    • This could be due to higher numbers of customers returning to GM stores for recall purposes, recovering auto sales post-recession, or other factors.
    • GM has been making plans for expansion in China, in tandem with possible recovery in the domestic market.
    • While YTD GM stock is at a relative low point, recovery is possible; investors might consider taking positions in the second half of 2014 if results continue up.
  • Quiet Period Expiration For ServiceMaster Global IPO Serves Up A Great Buying Opportunity
    Fri, Jul. 11 SERV 3 Comments

    Summary

    • August 5th marks the conclusion of the 25-day SEC-enforced quiet period on SERV.
    • On August 6th, SERV's many powerful underwriters will likely attempt to boost the price of SERV shares with the release of positive, detailed research reports.
    • SERV has performed generally well on the market post-IPO, and receives continued support from private equity firm CD&R.
    • We see the quiet period expiration for SERV as another chance to buy into this multidimensional company.
  • Following BNP's Huge Fine, U.S. Regulators Turn To Deutsche Bank And Commerzbank
    Thu, Jul. 10 CRZBY, HRTG, DB 1 Comment

    Summary

    • US regulators are accusing Commerzbank of Money Laundering violations of over US$500 Million, and Deutsche Bank of currency manipulation of substantially higher amounts.
    • Deutsche Bank has warned that continued investigations into the matter could have a material financial impact.
    • With spotty results and stock in decline YTD, we suggest investors steer clear of Deutsche Bank at present.
  • Adeptus Health IPO Quiet Period Offers An Adaptable Buying Opportunity
    Thu, Jul. 10 ADPT Comment!

    Summary

    • The SEC-enforced 25 day quiet period on ADPT will come to an end on July 19th, allowing the firm's IPO underwriters to publish analyses on July 20th.
    • Evidence supports a rise in share price at the quiet period expiration, particularly for a firm with strong underwriters like ADPT.
    • We note a short-term buying opportunity at this event time.
  • Bank Of America And JPMorgan Fire Thousands Of Employees But Raise CEOs' Salaries
    Wed, Jul. 9 C, HRTG, WFC 82 Comments

    Summary

    • Mega banks, including Bank of America and JPMorgan, have tried to cut costs by closing down bank branches and laying off thousands and thousands of hard-working employees.
    • This loss of people-power often makes banks less efficient and over-tasks remaining employees.
    • Both BAC and JPM have shown declining performance YTD, while their CEOs' compensation and benefits, including private jets have been very rich, showing a disconnect among priorities for shareholders.
    • We reiterate our stance that investors should consider taking profits in BAC and JPM and consider Wells Fargo and Heritage Insurance in the second half of 2014.
  • Xunlei Limited's IPO Quiet Period Expiration Opens Buying Opportunity
    Wed, Jul. 9 XNET 3 Comments

    Summary

    • July 18 marks the end of the SEC-enforced 25 day quiet period on underwriter research for XNET; July 19th is the first day underwriters can release reports.
    • These detailed research reports will likely be positive and cause a short-term price increase in XNET in the days preceding and following the quiet period expiration date.
    • Although XNET has not performed with consistent strength, its IPO was positive, suggesting investor confidence and excitement in Chinese tech firms.
    • XNET’s reputable underwriters, including J.P. Morgan and Citigroup, will likely help boost the price of XNET shares at this time.
  • Citigroup Prepares To Write Obama A $7 Billion Check; Investors Should Steer Clear
    Wed, Jul. 9 BAC, JPM, C 74 Comments

    Summary

    • It’s estimated that Citibank will pay a $7 billion dollar fine for its shoddy mortgage practices before the financial crisis.
    • While Citi likely has enough to cover this fine, it will be hampered in competing with innovative peer institutions and rewarding shareholders with increased dividends.
    • We anticipate that Bank of America will be next to write a HUGE check to Attorney General Holder.
    • We reiterate our stance that investors should steer clear of Citibank and Bank of America in the coming quarters at least.
  • Unfashionable Outlook For American Apparel Investors; Alleged Revealing Photos Not Helping Current CEO
    Wed, Jul. 9 APP 9 Comments

    Summary

    • APP is trying to raise capital from hedge fund financier Standard General to cope with a $10 million debt, called in by Lion Capital.
    • The financing would allow APP to offset a loan made by the founder of the company, Dov Charney, which is now on the outs.
    • Mr. Charney has recently been charged with misusing company funds, as well as sexual harassment of a former employee; it is likely that the company leadership will be restructured.
    • With leadership and financing in flux, as well as poor performance in its sector, we suggest investors take profits in APP.
  • Cancer Causes Leadership Vacuum At JPMorgan
    Wed, Jul. 9 JPM 8 Comments

    Summary

    • JPM CEO Jamie Dimon disclosed last week that he will receive treatment for cancer; the news raised concerns about how the institution will be managed going forward.
    • This is an important time in JPM’s history to be well-managed as the environment for big banks has been tough and JPM’s results have been inconsistent.
    • While some indicators are positive, we are still very concerned about declining trading revenue, other 2014 losses, and continued scandals which results in billions and billions in fines.
    • We reiterate our position to sell JPM stock before news gets worse in 2014.
  • Trinseo IPO Quiet Period Expiration Could Manufacture A Profit For Investors
    Tue, Jul. 8 TSE 4 Comments

    Summary

    • The 40-day SEC-enforced quiet period on underwriter analysis publications that began with the June 11 IPO of TSE will conclude on July 22.
    • TSE's strong and numerous underwriters will attempt to boost TSE's already strong market performance even higher with a release of positive information into the market at this time.
    • In anticipation of these reports, share prices often rise a few days prior to the event and return to normal levels two days afterward.
    • Given TSE's powerful positions in several of its markets, we see the quiet period expiration as another chance to buy into this growing firm.
  • Tesla's Strategic Management Paves Clear Road For TSLA Stock
    Tue, Jul. 8 TSLA 13 Comments

    Summary

    • On June 1st 2014, Tesla CEO Elon Musk stated the company would not initiate patent lawsuits against those who use their technology in good faith.
    • This highly strategic move could paradoxically help Tesla by removing gasoline vehicles from the market more rapidly, with more manufacturers utilizing Tesla batteries and specialty parts.
    • Musk’s forward-thinking ideas, accompanied by a staggering 52% rise in TSLA stock for the year, keeps us very positive on the company going forward in 2014.
  • Disney Stock Hot After Frozen's Success
    Mon, Jul. 7 DIS 15 Comments

    Summary

    • Disney’s 'Frozen' movie has the potential to push the company, and its stock, to a new level of prominence.
    • Disney’s strong marketing emphasis on 'Frozen’s' unique, boundary-pushing qualities paid off with $1 billion in box office revenues and significantly more from merchandising.
    • Even without Frozen, Disney’s diversified business segments will very likely provide revenue streams from several angles in the years to come.
    • With the additional boost from 'Frozen', we continue to be positive on Disney in the second half of 2014.
  • A Less Urbane Outlook For Citigroup Investors In Q3 2014
    Mon, Jul. 7 C 49 Comments

    Summary

    • Discussions recently stalled between Citigroup and the Justice Department regarding a settlement for the bank's marketing of subprime mortgage investments.
    • Unfortunately, Citigroup may have little-to-no leverage in negotiating with Justice to settle for a lesser amount than $10 billion.
    • Shareholders, who must carry the costs of any punitive settlement and attorneys' fees, could be alienated in this process.
    • We suggest investors consider taking profits in Citigroup now, as the outlook looks bleak in the second half of 2014.
  • Lockup Expiration For EP Energy Corp. Could Unleash Resources For A Short Opportunity
    Mon, Jul. 7 EPE 9 Comments

    Summary

    • Wednesday, July 16 marks the conclusion of the 180 day lockup period of EPE.
    • At that time, major pre-IPO shareholders, including private equity and energy firms, as well as EPE’s executives and directors, may dump some of their outstanding shares.
    • With strong pre-IPO shareholders, with the power to dump 208.7 million shares into the market, a temporary short opportunity is possible for aggressive investors.
  • JD.com, Alibaba Boost Yahoo Stock Even Further In 2014
    Mon, Jul. 7 AMZN, BABA, JD 9 Comments

    Summary

    • Yahoo is soon looking to reap rewards from its investment in Alibaba, which some analysts value at $26 billion.
    • Yahoo's large stake in Alibaba, along with a favorable market for Chinese IPOs lately, has helped lift Yahoo's share price over the past two years.
    • However, with Yahoo still struggling to define its core business and compete with powerhouse rival Google, how Yahoo spends its Alibaba earnings could make or break the company.
    • We are positive on Yahoo stock as it continues its surge, leading up to Alibaba's IPO, and suggest investors hop on for the ride.
  • As Century Communities Recovers, Quiet Period Expiration Opens Buying Opportunity
    Mon, Jul. 7 CCS 3 Comments

    Summary

    • The 25-day quiet period on underwriter research related to CCS will conclude on July 12, allowing the IPO underwriters to publish positive reports on CCS on July 13.
    • CCS appears to be recovering from its weak market debut, and has posted a profit in every quarter since its founding.
    • The upcoming quiet period expiration represents a fresh opportunity for investors to get a piece of this consistently growing firm; share prices often increase in anticipation two days before expiration.
  • Blackstone To Start An Aggressive Hedge Fund With Billions
    Mon, Jul. 7 KKR, BX 7 Comments

    Summary

    • Blackstone is reported to be starting a hedge fund, with teams managing $500 million in assets.
    • Although this is a shift in strategy from private equity, Blackstone is well equipped for the change, being the largest investment manager of hedge fund, fund-of-funds.
    • The move into pure hedge fund management will more fully diversify Blackstone's revenue stream at a time when other large financial firms are seeing declines.
    • We continue to be very positive on Blackstone moving forward in 2014.
  • Chocolate Gets Too Hot For Hershey In 2014
    Sat, Jul. 5 NSRGY, BYCBF, HSY 4 Comments

    Summary

    • This June, the price of cocoa reached its highest level since 2011.
    • Hershey in particular has seen a tough 2014 in correlation with rising cocoa prices.
    • As many macro factors indicate continued price increases for the foreseeable future, we suggest investors take profits in HSY now.
  • Powerful Underwriters Could Boost Eclipse Resources Corp. At Quiet Period Expiration
    Thu, Jul. 3 ECR 4 Comments

    Summary

    • July 14 marks the expiration of the SEC-enforced 25-day quiet period for ECR. On July 15, ECR's underwriters will likely release positive reports on ECR into the market.
    • Academic studies show an increase in share price beginning two days before the quiet period expiration and lasting two days afterward, for companies with research reports released.
    • Although ECR has not performed well post-IPO, its powerful list of underwriters could give ECR a boost on July 15; energy stocks have also been successful in recent months.
    • We suggest ECR's quiet period expiration as a potential buying time for aggressive investors.
  • Investors With Foresight Will Buy Foresight Energy's IPO Quiet Period Expiration
    Wed, Jul. 2 FELP 1 Comment

    Summary

    • The 25-day quiet period on underwriter analyses for FELP will come to an end on July 12, allowing the firm's underwriters to release detailed positive research on July 13.
    • Although FELP has performed inconsistently post-IPO, investors should consider buying into the firm; the anticipation of positive research reports often leads to a price increase two days before publication.
    • Though the long-term outlook for coal is concerning in an era of tightening environmental regulation, coal remains a critical source of power in the United States; and FELP is poised.
  • Bank Of America Has Been Dead Money For 20 Years: Did They Fire The Right People?
    Wed, Jul. 2 HRTG, WFC, BAC 362 Comments

    Summary

    • BAC cut the bank’s operating expenses in their mortgage sector by laying off 540 Charlotte employees.
    • Despite CEO Brian Moynihan's 2014 compensation package of $14 million, BAC stock price has not seen significant improvements since he was named CEO.
    • $14 million is equal to roughly half of the combined salaries of the Charlotte employees laid off in the call center and throughout city branches.
    • We reiterate our negative stance on BAC in 2014 and strongly suggest investors change positions to WFC or HRTG, both industry leaders in the mortgage and insurance markets, respectively.
  • Quiet Period Expiration For Viper Energy Partners IPO Could Have A Bite To It
    Wed, Jul. 2 FANG, VNOM Comment!

    Summary

    • The 25-day quiet period on underwriter research for VNOM will expire on July 12, allowing the firm's IPO underwriters to publish research reports on July 13.
    • In anticipation of positive analyst reports, share prices often rise two days before the quiet period expiration.
    • VNOM's IPO priced well above its expected range, saw an impressive 24.4% first day return, and has since bounced between $32 and $34 per share.
    • While domestic oil companies remain more stable bets than their foreign counterparts; we recommend VNOM as a Buy.
  • Wells Fargo Powers Ahead Of Bank Of America, JPMorgan, And Citigroup
    Wed, Jul. 2 BAC, C, JPM 38 Comments

    Summary

    • Shares of WFC reached $51.90 last Friday, exceeding 14% for a one year period, while peers JPM, BAC, and C closed at lower levels.
    • WFC’s current success is partially attributed to the bank’s tight regulations regarding risk taking and cautious delays when it comes to trading operations.
    • We strongly suggest investors consider WFC over and above its competitors in 2014.
  • Heritage Insurance Holdings: Our Pick For The Second Half Of 2014
    Tue, Jul. 1 HRTG 2 Comments

    Summary

    • Despite a slightly disappointing IPO, HRTG has shown impressive gains since, as investors have caught on to its strong fundamentals and industry niche.
    • We expect HRTG's book value to almost double by the end of 2016, and net income to triple.
    • Given continued positive market conditions, we rate HRTG a strong buy going forward in 2014 and beyond.
  • Investar Holding Corp. IPO
    Tue, Jul. 1 ISTR Comment!

    Summary

    • ISTR, a commercial bank operating in Louisiana, raised $40.6 million in its IPO today.
    • ISTR must compete with other commercial banks, including JPMorgan Chase and Bank of America.
    • ISTR has seen growing profits over the past several years, and has established a foothold in its target markets; we suggest investors consider buying into this IPO.
  • Market Could Heat Up Around Markit IPO Quiet Period Expiration
    Tue, Jul. 1 MRKT 6 Comments

    Summary

    • The 25 day quiet period on underwriter research related to MRKT will conclude on July 13, allowing the firm's IPO underwriters to release research reports on July 14.
    • The firm has maintained impressive income figures throughout this growth, bespeaking solid management.
    • MRKT’s solid list of underwriters should boost the stock’s price leading up to the quiet period expiration, opening a buying opportunity for investors.
  • Investors Should Dig Deep For North American Offshore's IPO Quiet Period Expiration
    Mon, Jun. 30 NAO Comment!

    Summary

    • The 25 day quiet period on underwriter research on NAO, initiated by the firm's June 11 IPO, will come to an end on July 7.
    • NAO had a less than impressive IPO but has seen steady gains since; underwriters will likely try to boost the stock further with their detailed positive reports on July 8.
    • We see this event as a solid short-term buying opportunity for aggressive investors .
  • Amazon's Fire Phone Douses Shareholders' Expectations
    Mon, Jun. 30 AAPL, BABA, AMZN 28 Comments

    Summary

    • So far, there is no indication that Amazon's Fire Phone can compete against Apple's iPhone.
    • Amazon has a pattern of trying to diversify from just e-commerce; however, growth is stalling in the meantime.
    • With competitor Alibaba's NYSE IPO looming large, Amazon investors should hope that the company focuses more on its core business to reverse losses in 2014.