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  • Walgreen: This Retail Leader Is No Longer A Safe Dividend Bet
    Mon, Aug. 4 WAG 25 Comments

    Summary

    • A 46% increase in the share price has driven the yield below 2%, and management may not be able to increase the payout appreciably.
    • Sales growth improved over the last quarter, but has been stagnant for two years on pricing pressures.
    • The acquisition of Alliance Boots may disappoint investors on poor earnings quality and a backlash to tax inversion deals.
  • This Megatrend Company Has Strong Catalysts For A Turnaround
    Wed, Jul. 30 SYMC 1 Comment

    Summary

    • Though lagging peers over the last few years, Symantec is a strong name in the cybersecurity megatrend and has the cash to reposition itself.
    • An acquisition of a smaller peer in cybersecurity could help position in mobile or enterprise security while a spin-off would unlock value.
    • Beyond an acquisition or spin-off the reorganization may also lead to change strong enough to improve sentiment and send shares higher.
  • The Best Buy In Healthcare REITs Is The Worst Performer
    Tue, Jul. 29 HR, HCN, VNQ 14 Comments

    Summary

    • HCP has underperformed other healthcare REITs and the general market, but is a better buy on long-term income and a less risky business model.
    • The only REIT in the S&P 500 Dividend Aristocrats and a strong commitment to shareholder cash return.
    • Strong position in the theme of aging demographics and a diversified investment strategy.
  • A VMware Spinoff Is Not Coming But EMC Will Still Go Higher
    Mon, Jul. 28 EMC, VMW 3 Comments

    Summary

    • The case for a spinoff of the cloud virtualization business is supported with nearly a 15% upside.
    • The company realizes significant benefits from the combined structure and the long-term upside is likely higher than the potential in a split.
    • Management is likely to respond over the near-term and other options may help drive the shares higher.
  • Buy McDonald's Before This Storm Subsides
    Mon, Jul. 28 MCD 29 Comments

    Summary

    • Weak earnings and a meat scandal have driven McDonald's shares significantly lower recently but both may prove transitory.
    • Talk of an increase in the minimum wage ahead of November elections may limit upside but any increase will ultimately be mitigated by price increases.
    • Even on conservative estimates for growth next year, the shares can return an annualized 12% over the next 18 months.
  • Chair Yellen Or The World Cup: Who's Right On Social Media
    Wed, Jul. 16 FB 10 Comments

    Summary

    • Comments by the Fed Chair on Social Media valuations contrast with recent news on Facebook usage during the World Cup.
    • Facebook still has the potential to reach more than 4.3 billion that are not on the internet and 1.7 billion that are connected but not active users.
    • Acquisition of LiveRail and success in video advertising could drive potential even higher.
  • Ford: Double-Digit Growth In China Makes This A Strong Turnaround Play
    Tue, Jul. 15 GM, F 22 Comments

    Summary

    • Weakness in fleet sales and the F-series have limited sales growth.
    • Strong U.S. vehicle sales and a new F-series launch should support sales over near term.
    • Recent reports from China joint ventures point to strong potential in the world's largest market.
  • Are Your MLP Investments At Risk From Rising Rates?
    Tue, Jul. 15 KMP, LINE, AMLP 8 Comments

    Summary

    • Despite a subdued rate environment, yields are likely to increase into 2015 and income investors need to evaluate their rate exposure.
    • MLPs have performed well in a rising or falling rate environment, only dropping when rates change sharply.
    • Risk-averse investors may prefer MLP funds, while yields and upside may be higher in individual partnership names.
  • Fannie Mae Takes A Step Closer To Normal
    Fri, Jul. 11 FMCC, FNMA 8 Comments

    Summary

    • Proposed insurer rules by the FHFA help to ensure that the government will not need to bail out the mortgage giant.
    • The confirmation of Julian Castro as HUD Director has depressed the shares lately, but efforts to reform the GSEs do not have the political backing to do much harm.
    • Reaffirm my previous price target of $14 per share on higher G-Fees and a recovering housing market.
  • 3 Growth Stocks You Can Hold Forever
    Mon, Jun. 23 CTSH, EBAY, FTI 2 Comments

    Summary

    • For long-term growth holdings, look for companies that are consistently profitable with little debt.
    • Companies with strong brands and market share can maintain decent growth even when industry growth slows.
    • Always remember to diversify strategies within your portfolio with companies from different sectors and industries.
  • The Most Hated Stock In The S&P 500 Is Proving Shorts Wrong
    Mon, Jun. 23 X 3 Comments

    Summary

    • U.S. Steel is the most heavily shorted stock in the S&P 500 with 26.7% of shares borrowed to sell short.
    • Shares jumped 64% in the six months to January as shorts bought back shares but upside catalysts could cause more shorts to get squeezed.
    • A key decision on tubular imports and a general rebound could provide further upside.
  • McDonald's Shares Undervalued Even With Higher Minimum Wage
    Tue, Jun. 17 WEN, BKW, MCD 5 Comments

    Summary

    • An increase in minimum wage would decrease earnings by less than 6% in 2015, while growth in sales would support value.
    • McDonald's is relatively better positioned against peers like Burger King and Wendy's, which have a larger exposure to the United States.
    • Real estate owned presents an upside to McDonald's share value on top of solid fundamentals.
  • Johnson & Johnson: A New Marketing Strategy Could Drive Growth
    Thu, Jun. 12 XLV, JNJ 1 Comment

    Summary

    • Shares are around fair value or higher, but upside exists on catalysts for higher earnings.
    • A strong R&D budget and few major patent expirations should support sales with potential in a new marketing strategy for faster growth.
    • A renewed focus on cost management should improve margins and bottom-line results.
  • NQ Mobile Just Doubled Its Potential Value
    Tue, Jun. 10 NQ 82 Comments

    Summary

    • NQ Mobile announces a deal that values its subsidiary NationSky at $530 million and calls for an IPO within two years.
    • The company is aggressively seeking deals for its subsidiaries that improve its balance sheet and bring in investors.
    • Even without the announced deals, the company is trading for a significant discount on sales and is a good risk-return tradeoff given the release of the special investigation.
  • GM Is Turning The Recall Into A Big Opportunity
    Tue, Jun. 10 GM 14 Comments

    Summary

    • Shares of GM are relatively undervalued on an enterprise to sales basis and strong earnings growth should drive price gains.
    • Shares have lagged on uncertainty around the recall but customers do not appear to be leaving the brand.
    • Strong incentives could get customers to use their recalled cars to trade into newer brands and drive sales this year.
  • Intel Is Not The Dinosaur You Thought It Was
    Mon, Jun. 9 INTC 33 Comments

    Summary

    • Strong cash flow and earnings power should support shares around fair value.
    • PC decline could slow with some sub-segments like the micro-mini PC seeing growth.
    • Potential for upside growth in aggressive funding program of start-up tech firms.
  • These 3 Strategies Could Drive Growth For Microsoft
    Sun, Jun. 8 MSFT 8 Comments

    Summary

    • Shares may be slightly undervalued on a DCF basis but are trading well above historic price multiples.
    • A strong balance sheet and cash flow support an increase in dividends and buybacks.
    • Three strategies in particular; Cloud and Saas, Competition in Tablets, and the potential for Skype could drive faster growth.
  • Wal-Mart: Watch For The Sell-Off To Buy
    Thu, Jun. 5 WMT 2 Comments

    Summary

    • Leader in retail with sustainable pricing power and opportunities in other product categories.
    • History of cash returns to shareholders with very consistent operating performance.
    • Opportunity for better valuation on shareholder discontent in the near-term.
  • Westport Innovations: Finally Ready To Move Higher
    Thu, Jun. 5 WPRT 24 Comments

    Summary

    • An enterprise value of 4.0 times 2015 sales would put the shares nearly 24% higher.
    • Adoption of NGV has underwhelmed expectations but key drivers persist and it is only a matter of time before larger-scale usage.
    • Average age of heavy-duty fleet and an improving economic picture may drive an upgrade cycle in vehicles.
  • Fannie Mae: Icahn And Ackman Actually Agree On Something
    Tue, Jun. 3 FMCC, FNMA 13 Comments

    Summary

    • Shares could be worth $14 each on current fee structure.
    • Potential for higher fees mean value could be as high as $23 to $47 per share.
    • Short-term catalysts including an end to the Net Worth Sweep or re-listing could boost shares.
  • Shorts Got Burned And Are Pushing This Stock Higher
    Thu, Apr. 10 SNDK, VMW, WDC Comment!

    Summary

    • Shorts in EMC ballooned to 151 million shares this year but sellers failed to drive the shares lower. A rebound has forced shorts out and supported the price.
    • The company trades for an enterprise value well below competitors and a recovery in business investment could help management unlock value.
    • Longer-term catalysts like internet video should drive growth in both storage and virtualization.
  • 3 Dividend Stocks You Can Hold Forever
    Tue, Apr. 1 KMP, PM, POT 23 Comments

    Summary

    • Long-term investors can look to three ideas; dividends, megatrends and must-have products to position their portfolio for any market.
    • Pipeline operators and nutrient producers are in perhaps two of the strongest megatrends that will drive the market over the next several decades.
    • While companies producing 'must-have' products may not provide the same growth as others in the market, you can sleep soundly with reasonable cash yields and price returns.
  • 3 Housing Stocks Ready To Run On Pending Sales
    Thu, Mar. 27 FBHS, HD, PHM Comment!

    Summary

    • Housing activity has weakened since last year but temporary weather-related issues could soon clear.
    • Building permits jumped in February and pending sales could be up sharply when reported at 10am eastern.
    • Look for companies with strong free cash flow and the ability to return cash to shareholders.
  • A Dividend Increase Could Send This Laggard's Shares Higher
    Thu, Mar. 27 COH 4 Comments

    Summary

    • International growth has supported the shares and could soon play a much larger role for the company.
    • Coach has historically increased its dividend in the May-June period and free cash flow supports a strong increase this year.
    • Sentiment has been negative over the last year but could turn quickly on overseas growth or a dividend increase.
  • Magellan Midstream Partners: Low Risk And Income With A Strong Growth Upside
    Fri, Mar. 21 AMLP, MLPA, ENFR 11 Comments

    Summary

    • The U.S. will surpass Russia and Saudi Arabia as the world’s top producer by 2015, increased volume will support midstream companies.
    • A low correlation and stable income investment great for portfolio diversification.
    • Attractive growth projects supporting strong distribution coverage.
  • The United States Is Running Dangerously Low On Natural Gas
    Thu, Mar. 20 ANR, BTU, EPD 22 Comments

    Summary

    • Investors may want to position ahead of today's weekly natural gas inventory report, which could break through a significant psychological barrier.
    • The massive drawdown in natural gas storage has left levels at decade lows, and the summer buildup could come up short before next winter.
    • Higher natural gas prices on tight inventories could drive related stocks like coal producers and natural gas midstream MLPs.
  • Buy China On This Multi-Year Pattern
    Wed, Mar. 19 GXC, FXI 16 Comments

    Summary

    • Shares of Chinese companies trade for nearly half the price multiple of stocks in the S&P 500 but pay a dividend yield 1% higher.
    • The government has stepped in over the last two years with stimulus programs that have supported asset prices and driven indexes higher to the end of the year.
    • China-focused funds have lost up to 14% so far this year on weak economic data but could rebound if the government repeats the pattern of the last two years.
  • Ukraine Tensions Make This Megatrend Company Stronger
    Mon, Mar. 17 EPB, KMI, KMP 22 Comments

    Summary

    • Infrastructure for energy transportation has lagged production leading to transport through the more costly rail option and driving demand for pipeline growth for years to come.
    • A tax-advantaged structure for MLPs and their investors helps drive higher returns for the assets than can be achieved by traditional c-corporations.
    • Tension with Russia may expedite licenses for natural gas exports, opening another opportunity for revenue in the industry.
  • PotashCorp: A Long-Term Value Stock Deserving A Second Look
    Fri, Mar. 14 MOS, AGU, MOO 4 Comments

    Summary

    • The improved potash outlook was fueled by record production and stabilization of prices.
    • PotashCorp is the largest fertilizer producer by capacity and global leader in potash with competitive advantage in margins.
    • Strong cash flow enhances long-term shareholder return trading at a discount to fair value.
  • A Best-Of-Breed Stock That Is Cheapest In Its Sector
    Mon, Mar. 10 AGU 4 Comments

    Summary

    • The growing demand for crop production and yield will only be met by greater nutrient application.
    • Agrium is the leader in retail sales and has a strong advantage in multiple segments.
    • The company is the cheapest in its sector on an enterprise-to-sales value.
  • FireEye: Acquisitions And Innovation Could Surprise Higher
    Fri, Mar. 7 FEYE 17 Comments

    Summary

    • An experienced management team focused on innovation and acquisitions.
    • A mid-cap sweet spot that allows for flexibility and innovation but the financial power to deliver acquisitive success.
    • An industry pioneer with real-time monitoring capabilities and the ability to create an innovation advantage.
  • 40 Million Reasons To Buy This Cyber-Security Laggard
    Mon, Mar. 3 PANW, FEYE, KEYW 3 Comments