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Don Dion
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Don Dion (donalddion@gmail.com, @DRDInvestments) is the owner and Chief Investment Officer of DRD Investments, LLC, based in Naples, FL. and Williamstown, MA., a family office focused on managing a long/short hedge fund, real estate assets and various other financial assets for the Dion family.... More
My company:
DRD Investments, LLC
My blog:
Don Dion's IPO Analysis
My book:
The Ultimate Guide to Trading ETFs
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  • Quiet Period Expires Today For GI And EVH

    We are expecting positive detailed investment research reports on GI and EVH due to the expiration of the quiet period for GI and EVH

    Tags: GI, EVH
    Jun 30 9:39 AM | Link | Comment!
  • Yahoo! A Buying Opportunity, Following Pullback

    Technology giant Yahoo! (NASDAQ:YHOO) is moving forward with its plan to spin-off a new company, which it will then endow with a massive asset. Yahoo! plans to transfer the 384 million shares of Alibaba Group Holding LTD (NYSE:BABA), which it currently holds.

    Shares of the new company will be distributed to Yahoo! shareholders. Stockholders will then own shares of two separate stocks, and the new company that will be named Spinco. Potential benefits to the spin-off plan may include favorable tax treatment, and higher value in holdings to shareholders owning stock in both companies.

    Yahoo! expects the spin-off to be completed in the fourth quarter of 2015. If closing conditions and regulatory approval are forthcoming, the spin-off of the shares will save Yahoo! about $16 billion dollars in tax obligation.

    Optimism Under Mayer

    Yahoo! CEO Marissa Mayer has been with the company for about three years, having moved to Yahoo! from her position as a tech executive with rival Google (NASDAQ:GOOGL). She has concentrated efforts on growing Yahoo!'s market share in a very competitive niche of tech titans. There is an air of optimism under her direction as investment in growth businesses, expansion of the stock repurchases program, and the pending spin-off of Alibaba shares support belief that the Yahoo! stock price could grow if the current business plan proves successful.

    Bright Spots in Yahoo!'s Mobile and Search Results

    Yahoo!'s recent earnings reports have been a mixed bag, with first-quarter earnings for 2015 missing Wall Street expectations by about 3-cent a share. Revenue for Q1 was $1.04 billion versus expectations of $1.06 billion. Compare this result to Q1 2014 when revenues were $1.09 billion. The Q1 adjusted earnings equated to 15-cent a share, as opposed to the consensus expectation of 18-cent a share.

    Display advertising revenues decreased, while others areas of revenue production, such as search revenue, increased. Mobile growth was up substantially year-over-year and looks to be a promising revenue producer over time. According to CEO Marissa Mayer "Yahoo! is amidst a multi-year transformation to return an iconic company to greatness". There are certainly indications that Yahoo! is taking calculated steps to move in a positive direction. The purchase of social media site Tumblr may prove to be a solid revenue generator. Additionally, moves such as acquiring the mobile app analytics company Flurry make Yahoo! a potential leader in attracting mobile developers.

    Lining Up WIth Peers Google, Facebook

    Yahoo! continues to hold its own when rated against its peer group. Morningstar, ranks Yahoo! a four star company (1-5 stars; 5 as best). As comparisons, Google (NASDAQ:GOOG) is also rated 4, while Facebook (NASDAQ:FB) is a 3.

    (click to enlarge)

    (Nasdaq.com)

    While Yahoo!'s market cap of $38.5 billion might appear paltry, compared with Google ($381.2 billion) and Facebook ($247 billion) - coupled with significantly smaller income - it is still formidable.

    Conclusion: Buying Opportunity

    Yahoo! has made some solid core business decisions, following the BABA windfall, including several exciting acquisitons. Layoffs have tightened the payroll belt and streamlined functionality. CEO Mayer has indicated that 2014 was a year spent collecting data and experimenting with the product line; they are now ready to implement what they have learned.

    We see the current pullback in YHOO shares as a buying opportunity for those bullish on the firm and CEO.

    (click to enlarge)

    (Nasdaq.com)

    For current shareholders; we see the Spinco development as a reason to hold through the second half of 2014 while changes begin to take root.

    Jun 29 8:52 AM | Link | Comment!
  • Tesla Is A Strong Buy Ahead Of Rollout Of Model 3

    Tesla Motors (NASDAQ:TSLA) continues to expand in a big way by leasing a 500,000 square foot manufacturing facility in Palo Alto. The additional plant, and its new Gigafactory in Reno, signal that Tesla plans to aggressively pursue the development of its new Model 3 cars.

    Consumers have been anticipating Tesla's latest line in high-performance electrical cars. According to initial designs, the Model 3 will act as a family of vehicles, where consumers can choose from sedans or variants of sedans. Analysts speculate that the Model 3 will take Tesla to the next level, and justify the company's current $32 billion market cap.

    Revenues Continue To Drive Company Forward

    Tesla reported revenues totaling $939.9 million in the quarter ending March 31, 2015, up from $620.5 million in the same quarter last year. Although the company reported a total loss of $154.2 million for the quarter, the company reports most of the losses were attributed to its recent investments in infrastructure. Tesla expects revenues will continue to increase and costs will fall as it plans to deliver the widely anticipated Model X in the next three to four months.

    Competitors Rev Their Engines

    Tesla Motors faces stiff completion as General Motors (NYSE:GM) and Honda (NYSE:HMC) plan to spend billions of dollars developing the next line in hybrid and battery-powered cars. Honda ditched its current Civic hybrid and natural gas cars to focus more on the development of hydrogen-powered cars.

    GM plans to compete directly with Tesla by developing a new line of electric cars based on the Chevrolet Bolt EV. Although the company did not announce any production details, insiders speculate that GM will start production late next year. GM claims the electric car will have a driving range of 200-miles per charge and cost $30,000.

    Yet Tesla developed the groundbreaking Model S, the only electric car on the market with a 200-mile per charge driving range. Although the Model S costs around $70,000 after taxes, Tesla reports that its Model 3 will have the same range as the Model S without the price tag. Elon Musk, CEO of Tesla Motors, states that the Model 3 will cost consumers around $30,000.

    All Time Highs Ahead

    According to analysts who regularly follow Tesla, the outlook remains strong if the company delivers on its 3 to 4 month rollout schedule for the new Model X. Adam Jones, Morgan Stanley's Tesla analyst, states that the company can set all-time highs by the end of the year if it can deliver the new Model X and Model 3 as scheduled. With the lease of the new 500,000 square foot facility in Palo Alto and its mega Gigafactory in Reno, Tesla should be able to deliver as promised.

    Conclusion: Buy TSLA Ahead of Rollout

    Despite established firms attempting to edge innovator Tesla out of its reputable position as an EV leader, GM in particular has not proven the versatility that Musk's company has. Still weighed down by a host of recalls, GM stock shows no signs of ceasing its slow decline.

    (click to enlarge)

    (Nasdaq.com)

    Despite TSLA's impressive growth, we agree that upside is still to come. For the year, we are seeing TSLA trading below its high close to $286. This could be an excellent buying opportunity ahead of the rollout of a more consumer-friendly model.

    (click to enlarge)

    (Nasdaq.com)

    Moreover, EV charging stations for Teslas are proliferating; infrastructure is in place to drive forward.

    (Source)

    Tags: GM, HMC, TSLA, long-ideas
    Jun 19 9:26 AM | Link | Comment!
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