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  • Target Corporation Has Bitten Off More Than It Could Chew
    Tue, Aug. 19 TGT 5 Comments

    Summary

    • The data breach scandal in 2013 was a result of the company’s carelessness And absence of tighter security procedures.
    • Target is attempting aggressive expansion in Canada by opening 124 stores and 3 warehouses.
    • The company is taking many steps towards fixing the mistakes made, including the appointment of a new CEO and resetting the supply chain of the Canadian segment.
  • Is Starbucks Undervalued?
    Tue, Aug. 19 SBUX 6 Comments

    Summary

    • In the third quarter of 2014, Starbucks reported top line growth that beat its rivals and bested its estimates in every region.
    • Starbucks has maintained a strong upward trend over the last several years, but the price action has become a little rough over the last year.
    • Starbucks will maintain its upward trend in dividend growth.
  • Coach Investors Can Breathe A Sigh Of Relief
    Fri, Aug. 15 COH 2 Comments

    Summary

    • Coach’s total net sales fell to $1.14 billion in the fourth quarter of 2014 from $1.22 billion in the corresponding period last year reflecting a drop of about 7%.
    • Sales in North America fell by 7% as compared to fourth quarter prior year.
    • Coach’s plan to repair its brand: new advertisement campaigns, closure of stores in North America.
  • Time To Buy Sirius
    Tue, Aug. 12 SIRI 31 Comments

    Summary

    • Sirius underperformed the S&P 500 index in the last twelve months and its stock fell 12.79% over the same period.
    • Sirius is capable of growing quickly and the industry dynamics are in its favor. This probably makes Sirius an undervalued stock with attractive upside potential.
    • With the help of new car sales and greater penetration among used cars, Sirius' paid subscriber base is expected to reach 30 million in the next few years.
  • Adidas To Launch Biggest Marketing Campaign Ever But Nike Need Not Worry
    Tue, Aug. 12 NKE Comment!

    Summary

    • The German player Adidas, which has been consistently losing market to its strongest rival Nike has finally admitted that it needs to invest more and more in its brand.
    • Now the question that arises is whether this largest brand campaign ran by Adidas is going to hit Nike badly?
    • Nike’s tremendous financial performance will definitely help it fighting with its competitors but there may still be a long way to climb up.
  • Mondelez: The Future Looks Blurry
    Tue, Aug. 12 MDLZ 10 Comments

    Summary

    • The snack foods industry generates $300 billion in annual revenues worldwide.
    • The U.S. snack foods industry is highly concentrated and the top 50 players generate around 90% of the total industry revenues.
    • Mondelez has been reporting volatile earnings results and its recently released second quarter results for 2014 were weaker than the last quarter’s results.
  • LinkedIn: An Attractive Long-Term Investment
    Mon, Aug. 11 LNKD 3 Comments

    Summary

    • LinkedIn produced explosive top line growth but its earnings growth is not in line with this growth.
    • It is expected that the bottom line will begin to show significant growth in the next year.
    • After the correction in LinkedIn's stock price it lost 24% of its value in 2014 so far as speculation caused the price to increase too high.
  • DineEquity: Once Again Proven To Be The Best
    Sun, Aug. 10 DIN Comment!

    Summary

    • DineEquity was ranked number 1 by Nation's Restaurant News.
    • Second quarter 2014 EPS rose by 14% compared to the second quarter last year.
    • Cash flows from operations in the first half of year 2014 increased by 1.8% compared to the corresponding period last year.
    • Around $29 million was paid to the company’s shareholders in form of dividends and share repurchases.
  • Disney: An Attractive Long-Term Stock
    Sun, Aug. 10 DIS 4 Comments

    Summary

    • Disney outperformed the S&P 500 and its competitors in the last twelve months.
    • Disney reported another blockbuster quarter with impressive growth from the film studio.
    • Disney is a long-term buy because its business model holds the potential to deliver good growth numbers in the long term.
  • A Rough Time For Philip Morris
    Wed, Aug. 6 PM 10 Comments

    Summary

    • Philip Morris reported earnings of $1.19 per share and beat the consensus estimates of $1.17 with a 1.17% earnings surprise.
    • The number of smokers around the world is projected to rise to 1.64 billion by the end of 2025.
    • Philip Morris announced that it has purchased Britain’s largest e-cigarette manufacturer, Nicocigs Ltd.
  • Time To Invest In Kraft Foods
    Tue, Aug. 5 KRFT 4 Comments

    Summary

    • Kraft Foods underperformed compared to the S&P 500 index’s performance in the last twelve months but the company still outperformed Whole Foods Market and JM Smucker over the same period.
    • In the second quarter of 2014, profits fell by more than 40% as a slight improvement in revenues could not offset a substantial gain in the second quarter of 2013.
    • The stock is trading at a trailing price to earnings multiple of 13.54 times making it inexpensive compared to its competitors and the industry average.
  • Coca-Cola Will Regain Investor Confidence
    Fri, Aug. 1 KO 8 Comments

    Summary

    • Despite the negative growth in revenues Coca-Cola once again beat analyst estimates by 1%.
    • Coca-Cola’s largest contributor in revenue, the North America segment, failed to report any growth in revenue despite heavy marketing.
    • Coca-Cola still has the healthy dividend yield from previous 25 years with high payout ratio.
  • The Right Time To Buy Microsoft
    Wed, Jul. 30 MSFT 14 Comments

    Summary

    • Despite having decent revenue growth, Microsoft missed the earnings estimates in the fourth quarter of fiscal year 2014.
    • China has temporarily lifted the ban and Microsoft, in collaboration with China Telecom, will be selling Xbox Ones starting from September of 2014.
    • Microsoft reported diluted per share earnings of $2.63 with a net income of $22.07 billion for full year 2014 reflecting an increase of around 1% from the previous year.
  • Why You Should Invest In Comcast
    Wed, Jul. 30 CMCSA, CMCSK 15 Comments

    Summary

    • Comcast lost 144,000 video subscribers in the second quarter, compared to the loss of 162,000 customers a year earlier continuing the trend of improving video results.
    • NBCUniversal Group’s performance was fairly strong. The operating income increased 20% from almost flat revenues.
    • Comcast’s current dividend yield of 1.65% is not one of the highest dividend yields but there is still much room for growth.
  • Yum Brands Will Go Higher
    Tue, Jul. 29 YUM 2 Comments

    Summary

    • Revenue and earnings per share both increased compared to results of the last quarter.
    • Yum! Brands’ scandals have been learning experiences for fast food operators in China.
    • It's worth noting that while the company beat estimates of the top and bottom lines and the stock should have increased in price, it actually dropped 0.56%.
  • Honeywell International: This Stock Is Worth Buying
    Tue, Jul. 29 HON 2 Comments

    Summary

    • Based on its multiple price valuation, Honeywell’s stock is underpriced with potential of 1.87%.
    • The company’s Automation and Control Solutions segments will revive their contribution to the company’s overall revenue.
    • The next quarter will bring a 4-5% increase in revenue.
  • Take A Bite Of Yum! Brands
    Mon, Jul. 28 YUM 1 Comment

    Summary

    • China generates more than half of the company’s total revenue.
    • The company is expected to show 1.08 EPS in the next quarter.
    • An increasing number of total restaurants in emerging markets points to a healthy top line.
  • General Electric Is Making The Right Moves
    Thu, Jul. 24 GE 22 Comments

    Summary

    • General Electric reported 3% revenue growth and 13% net income growth in its second quarter results.
    • General Electric is looking forward to selling its iconic appliance business due to thin profit margins.
    • General Mills repositioned itself with the acquisition of Alstom and by spinning off the GE capital business.
  • Put Coach In Your Growth Portfolio
    Thu, Jul. 24 COH 21 Comments

    Summary

    • Innovation in bag designs and implementation of new marketing strategies will revive Coach’s lost position in the leather accessories industry.
    • China’s contribution towards revenue will increase in the coming years as the company intends to open more outlets in China.
    • Management wants to see its men bags and other men-related products ruling their respective market.
  • SanDisk Is A Long-Term Buy
    Mon, Jul. 21 SNDK 4 Comments

    Summary

    • SanDisk reported an 11% year over year increase in revenues and a 10% increase in net income for the second quarter.
    • SanDisk increased the quarterly per share dividend to $0.30 which will be effective in the third quarter.
    • Recently SanDisk announced the expiration of the HSR waiting period for the proposed acquisition of Fusion-IO.
  • Philip Morris International Will Fall Like Ash
    Mon, Jul. 21 PM 46 Comments

    Summary

    • The anti-tobacco government regulation in its regional business segments and macroeconomic policies are threats to the company’s market share in its respective regions.
    • The company will not have the ability to show healthy EPS in the long term.
    • The large payout is dangerous for the company’s future growth.
  • Intel: Impressive Results And Strong Outlook
    Fri, Jul. 18 INTC 4 Comments

    Summary

    • Intel reported impressive second quarter results, generating $13.8 billion revenues, $2.8 billion net income, and earnings per share of $0.55.
    • Intel showed robust growth across its major business segments, except its mobile communications group which is facing stiff competition.
    • Intel beats analysts’ estimates for the third quarter and anticipates $14.4 billion in revenues whereas analysts were expecting $14.1 billion.
  • Kellogg's Project K Is The Company's Strength
    Fri, Jul. 18 K 1 Comment

    Summary

    • The four-year cost-cutting program initiated under the name of Project K is leading Kellogg in the right direction.
    • Investors concerned about the downgrading of Kellogg's stock by Goldman Sachs should analyze past results driven by Project K.
    • A major part of Project K is to cut down the workforce to create greater efficiency and effectiveness.
  • Starbucks Is Moving In The Right Direction
    Fri, Jul. 18 SBUX 6 Comments

    Summary

    • Two of the biggest names in the coffee business, Starbucks and Nespresso, will set up shop in Colombia.
    • Over the next five years, with its joint venture, Starbucks plans to aggressively expand in Bogota and other major cities in Colombia.
    • Starbucks is confident that it will be able to achieve 10% revenue growth for the full year and anticipates same store sales will grow by mid-single digits.
  • General Motors: Effects Of The Recalls Will Become Apparent
    Thu, Jul. 17 GM 8 Comments

    Summary

    • General Motors is on a recall spree and has recalled more cars year to date than the entire US industry did in 2013.
    • The auto manufacturer has most recently recalled 27,000 Spark cars in South Korea due to defective transmission mount.
    • Total Chevrolet brand sales were up 1% for the first half of the year but fell 2.5% for June 2014 compared to June 2013.
    • General Motors has halted its production in South Africa after a strike by more than 220,000 metal workers which disrupted the production process.
    • General Motors is going to close its Opel Bochum factory in Germany in pursuit of curbing its high operating costs in Europe.
  • Why You Should Invest In Michael Kors
    Wed, Jul. 16 KORS 17 Comments

    Summary

    • Over the last 12 months, Michael Kors is up 41.7% and its competitor Coach is down 42%.
    • In addition to the likelihood of continued strength in the U.S. and Europe, Michael Kors plans to increase its global presence in non-established international markets.
    • Brashear served for five years as CEO and chairman of Hugo Boss' Americas division.
  • Coca-Cola Is Still A Solid Investment
    Wed, Jul. 16 KO 5 Comments

    Summary

    • Coca-Cola is diversifying its product portfolio and the company intends to launch Glaceau Smartwater in Britain.
    • After success in Argentina and Chile, it is expected that Coca-Cola Life will be a success in the U.S. and U.K.
    • Although the carbonated soft drinks category declined 3%, Coca-Cola’s share in the carbonated soft drinks improved 0.4% to 42.2% in 2013.
  • Shanghai Park And Media Networks Will Help To Create A Bright Future For Disney
    Tue, Jul. 15 DIS Comment!

    Summary

    • Shanghai Park is expected to generate more than $323 million of revenue.
    • The company is expected to show $2 billion net income attributable to shareholders.
    • ESPN has official rights to major sports leagues and will generate huge amounts of revenue from advertising.
    • The expected growth is primarily due to ESPN and domestic Disney channels as well as effective programming and production cost controls.
  • Yum Brands Will Go Higher
    Tue, Jul. 15 YUM Comment!

    Summary

    • Yum Brands opened its 40,000th restaurant in October 2013, and the company is now preparing to expand its KFC brand, particularly in China.
    • During the first quarter of fiscal year 2014, the Chinese division’s system sales increased at an enormous rate of 17%.
    • Citigroup has raised its earnings per share estimates based on the impressive performance of Yum Brands in the latest quarter.
  • Nike Is Well-Poised To Grow
    Tue, Jul. 15 NKE 1 Comment

    Summary

    • Nike ended its fiscal year 2014 with a strong performance and the stock increased by roughly 22% in the last twelve months. Investors should be happy with Nike's performance.
    • Nike's CEO, Mark Parker, is very confident that the company's soccer-related revenues will continue to grow at a rapid pace even after the 2014 World Cup ends.
    • The 2014 FIFA World Cup has strengthened the company's position for fiscal year 2015, and the Winter Olympics in 2016 will further boost the share.
  • Qualcomm: Outlook Is Quite Strong
    Tue, Jul. 15 QCOM 5 Comments

    Summary

    • Qualcomm announced that it has acquired Wilocity, one of the pioneers in 60 GHz WiGig technology.
    • Qualcomm is expected to grow at a stable growth rate of 15% which is roughly in-line with the historic growth rate of the last five years.
    • Qualcomm is trading at a forward P/E of 14.01, which is lower than its current P/E of 21.51 and also lower than its five-year historic P/E value.
  • Netflix: Expansion In Europe Will Enhance Returns
    Fri, Jul. 11 NFLX 12 Comments

    Summary

    • Goldman Sachs raised Netflix’s target price by more than $200 and expects that Netflix will deliver a 35% return over the next twelve months.
    • During the first quarter, Carl Icahn sold 16% of his stake in Netflix and the share price dropped; however, the price has now recovered.
    • Netflix has a solid expansion plan and the company has set its eyes on Europe to harness the growth potential of international subscribers.