Seeking Alpha
View as an RSS Feed

Hawkinvest  

View Hawkinvest's Articles BY TICKER:
  • Oil Stocks: Buy Low (Now), Sell High (Later)
    Wed, Jan. 21 XOM, USO, OIL 13 Comments

    Summary

    • After a oil price plunge, investors are getting a chance to buy low and participate in a future potential rebound.
    • Supply destruction is taking place and that should begin to support oil prices.
    • Consumption remains solid and could grow by nearly a million barrels per day in 2015, according to the IEA.
    • Extremely bearish price predictions and cover stories for oil could be a major buy signal.
  • U.S. Steel: After A 50% Drop, This Stock Looks Strong For Value Investors
    Tue, Jan. 20 X 7 Comments

    Summary

    • While U.S. Steel is probably experiencing reduced demand for tubular steel products, it is not enough to warrant a 50% decline in the share price.
    • It is possible that increased demand from other sectors could offset any weakness in the energy sector, as cheap oil can boost economic growth.
    • This stock appears to be a bargain as it trades well below book value and for just about 7 times earnings.
    • Cost cutting measures continue and that could translate into higher profits in the future.
  • Update: American Superconductor Outlook Bullish With Growing Cyber-Security Threats And New $1.50 Price Target
    Fri, Jan. 16 AMSC 11 Comments

    Summary

    • The market appears to be unaware of the potential emerging from American Superconductor's resilient grid system.
    • New and bullish analyst coverage suggest this stock is worth double the current price.
    • Shorts continue to cover this beaten-down stock and it has built a solid base over the past few weeks which could signal that downside is limited.
  • Update: McDermott And General Electric Announce A New Oil And Gas Joint Venture
    Thu, Jan. 15 GE, MDR 31 Comments

    Summary

    • General Electric and McDermott have announced a new joint venture which could lead to significant opportunities.
    • General Electric is one of the world's largest companies and it has been expanding its oil and gas industry exposure.
    • McDermott shares are very undervalued due to negative investor sentiment in the oil sector and this has created a significant buying opportunity.
    • At less than $3, McDermott shares are near Financial Crisis lows of 2009, and investors who bought back then made huge gains as it rebounded to $25 by 2011.
  • A 2015 'Nuclear Renaissance' Should Fuel Solid Gains For Uranium Stocks
    Wed, Jan. 14 CCJ 79 Comments

    Summary

    • The recent sell-off in many energy stocks has created a buying opportunity in the uranium sector.
    • Uranium could be one of the world's most undervalued assets and be poised for demand growth.
    • Japan plans to restart a number of nuclear plants in the coming months and this could mark the start of a 2015 'nuclear renaissance'.
    • Beyond 2015, there a numerous nuclear plants that are either under construction or being planned which should virtually guarantee increased demand for uranium.
  • The Oil Crash: Taking Advantage Of The Best Buying Opportunity Since The 2008 Financial Crisis
    Mon, Jan. 12 USO, CVX 14 Comments

    Summary

    • The crash in oil prices has created an exceptional buying opportunity, and some oil stocks are back near financial crisis lows.
    • The perfect storm of factors that caused the plunge in oil prices are not going to last forever.
    • Cheap oil is likely to boost consumption and add to global economic growth in the coming months, which should lead to more oil consumption.
    • Rig counts are dropping at record levels and that is a sign that production will be lower in coming months which sets the stage for an oil price rebound.
    • Now is the time to be averaging into the oil sector, as history shows a powerful rebound is coming sooner or later.
  • These Undervalued Casino Stocks Could Breakout As Cheap Oil Fuels Consumer Spending
    Thu, Jan. 8 MGM, GCA 5 Comments

    Summary

    • A recent plunge in oil should lead to increased consumer spending on food, travel, entertainment and more.
    • The two casino sector stocks below appear undervalued and should benefit from increased consumer spending.
    • Both stocks have significant upside of between 30 to 40%, according to analysts and one of these trades for just 7 times earnings.
  • Kratos Defense: Major Orders Keep Rolling In For This $5 Drone Play
    Wed, Jan. 7 KTOS 14 Comments

    Summary

    • Kratos is very well positioned to benefit from growing demand for drones, cybersecurity, and advanced security systems.
    • KTOS has a market cap of just about $300 million and appears very undervalued as not many investors are as familiar with this relatively small firm.
    • The company has been awarded a number of major contract wins in just the past few weeks, and it has a backlog worth about $1 billion.
    • A recent "strategic review" could mean that one or more divisions, or the entire company is "in-play."
    • This stock is too cheap to ignore at just $5, and multiple insiders have been recent buyers.
  • Update: McDermott Wins Another Contract And Its $3 Shares Get Upgraded To 'Overweight'
    Tue, Jan. 6 MDR 20 Comments

    Summary

    • McDermott management continues to execute and the company announced a new contract award.
    • McDermott shares are near $3 which is close to Financial Crisis lows, and that was a huge buying opportunity since the stock subsequently went to $25 in 2011.
    • On January 5, McDermott shares were upgraded to "overweight".
    • McDermott is my "best idea" for 2015, due to its cheap valuation, over $4 billion backlog, strong balance sheet and significant long-term upside.
  • 2 High Yield Investments That Could Double Your Money In About 7 Years
    Dec. 31, 2014 HNW, FSFR 7 Comments

    Summary

    • A recent pullback in the high yield sector has created another buying opportunity.
    • Buying pullbacks in junk bonds and the high yield sector has been generally rewarding over the past few years.
    • Interest rates are not likely to rise significantly in 2015, and that means the hunt for yield continues.
    • Investments that yield about 9.5% or more can double your money in as little as 7 years.
  • Update: Kratos Continues To Receive Significant New Orders For Drones And Other Products
    Dec. 30, 2014 KTOS 9 Comments

    Summary

    • Kratos continues to announce a flurry of new orders, some of which are significant for a $300 million market cap company.
    • At just over $5 per share, this stock appears significantly undervalued.
    • Kratos offers the types of products (like drones) and cyber security solutions that are needed to protect against modern warfare threats.
    • Analysts believe that Kratos is an attractive takeover target due to its product line and valuation.
    • Defense sector stocks are starting to breakout and that means Kratos could be poised to trend higher.
  • Best Long Idea For 2015: McDermott International (Part 2)
    Dec. 29, 2014 MDR 7 Comments

    Summary

    • The pullback in McDermott shares is unjustified, especially as it trades near the $3 lows it hit during the Financial Crisis and for less than half its book value.
    • Investors who bought at about $3 during the last crisis (2008) were able to sell for $25 by 2011, which provided 800% returns.
    • McDermott has a lot more cash than some investors realize, a multi-billion dollar contract backlog and a stellar reputation in the industry.
    • Historically, McDermott has been very profitable and contrary to what many investors believe, it is not dependent on high oil prices to be profitable.
    • McDermott expects to realize about $2.8 billion in revenues in 2015 and analysts expect it to turn a profit.
  • Raytheon's Cheap Shares Have More Firepower
    Dec. 26, 2014 RTN 9 Comments

    Summary

    • Defense sector stocks are trending higher.
    • This industry is poised for continued growth, especially with increasing global demand for cyber security and drones.
    • Raytheon appears undervalued and could be poised for additional gains, therefore investors should consider buying, especially on pullbacks.
  • Best Long Idea For 2015: McDermott International At $2.50 (Part I)
    Editors' Pick • Dec. 23, 2014 MDR 45 Comments

    Summary

    • Fear based selling, margin call selling and tax-loss selling has caused many oil sector stocks to plunge.
    • Irrational and forced margin call selling can create tremendous buying opportunities.
    • At just over $2.50, McDermott shares have been unfairly and excessively punished, but now appear poised to rebound as shorts cover and as tax-loss selling fades.
    • McDermott is working through less profitable contracts that were accepted by the former management team and it has recently won significant new contracts.
    • With book value at about $6.50, and with Barron's suggesting this company has "normalized" earnings power of $1 per share, this stock could outperform in 2015.
  • Update: Kratos Announces A $72.3 Million Contract, And Insiders Buy More Shares
    Dec. 23, 2014 KTOS 1 Comment

    Summary

    • Kratos remains underfollowed and undervalued as the company reports good news.
    • This company recently announced a successful test flight and a $72.3 million contract from the U.S. Air Force.
    • Insiders have been repeatedly buying shares throughout this year, and three new insider buys were recently reported.
    • Kratos could be an ideal takeover target, as the company is providing drones and cyber security solutions which are well-suited for modern threats.
  • American Superconductor: Too Cheap To Ignore With Emerging Energy Grid Security Catalysts
    Dec. 22, 2014 AMSC 24 Comments

    Summary

    • Buying under-followed and undervalued, small-cap stocks can lead to strong returns.
    • Buying beaten down stocks at the end of the year also van pay off as tax loss selling ends in December and shorts often cover in January.
    • American Superconductor has a strong balance sheet, revenue growth and price targets of between $2.10 to $3.25 per share.
    • A settlement could be an added bonus, but investors should focus on high-potential new products that address energy grid security and ship protection.
    • American Superconductor is an ideal way to play strong demand for wind power in India (which is expected to double in the next 5 years).
  • Kratos: At Just $5, This Drone And Defense Stock Is Giving Investors A Half-Off Sale
    Dec. 19, 2014 KTOS 11 Comments

    Summary

    • This little-known drone and defense sector stock is too cheap to ignore after a recent pullback.
    • Barron's and other analysts point out this company could be ripe for a takeover and at a significant premium to the current share price.
    • This company is poised to benefit from increased demand for security, surveillance, and the use of drones, which means the long-term future looks bright.
    • According to multiple analysts, this stock could be worth about twice the current share price.
    • This stock could also be poised for short-term gains as tax loss selling ends and potential short-covering increases in January.
  • January Effect Rally: Why These 'Fallen Angels' Could Outperform In 2015
    Dec. 17, 2014 BAS, KTOS 1 Comment

    Summary

    • Buying beaten down stocks at this time of year can make a lot of strategic sense.
    • Already cheap stocks have been getting hit with a temporary round of excess selling pressure for tax reasons.
    • These types of stocks often experience strong rebounds in a "Santa Claus" rally that could start on December 19th.
    • Shorts that have big gains in battered stocks often cover in January (also for tax reasons), which can fuel additional gains in a "January Effect" rally.
  • Oil Doomsayers Were Wrong In 2009: 4 Reasons Why They Are Wrong Now
    Dec. 17, 2014 CHK, USO, OIL 289 Comments

    Summary

    • Oil is extremely oversold and due for a rebound.
    • Oil consumption remains strong and is likely to increase thanks to cheaper prices.
    • Historically oil rebounds quite quickly, especially when the U.S. and global economy are growing.
    • Investors are overly negative on oil ever since the OPEC meeting, but production cuts could still be on the way.
  • Key Energy At $1: Priced Like An Option With Upside Potential To Match
    Dec. 16, 2014 KEG 11 Comments

    Summary

    • A massive rout in oil stocks has been caused by declining oil, extremely negative sentiment, margin call selling and tax-loss selling.
    • Key Energy shares were trading for more than $10 earlier this year and now are too cheap to ignore at just over $1.
    • This company has a significant amount of liquidity and a history of big comebacks.
    • Key Energy shares are priced like an option and could deliver major long term upside.
    • This stock is also deeply oversold and it is likely to rebound in the short term as tax loss selling fades.
  • Angie's List At $5: Poised For A Buyout, A Short-Squeeze And A January Effect Rally
    Dec. 15, 2014 ANGI 21 Comments

    Summary

    • Angie's List shares are a compelling value and have multiple upside catalysts.
    • This stock is undervalued based on rival valuations, revenue growth, and takeover potential.
    • Angie's List shares have long-term potential as well as short-term potential as the end of tax loss selling and short-covering could create a "January Effect Rally".
  • Update: Ceragon Chairman Buys Over 1.22 Million Shares For Just Over $1
    Dec. 14, 2014 CRNT 4 Comments

    Summary

    • A December 10th filing with the SEC shows that the chairman purchased over 1.2 million shares at $1.05.
    • Trading for a mere fraction of a $4 analyst price target and with a market cap equivalent to less than a single quarter of revenues, upside looms.
    • This stock has been forming a solid base for the past few weeks, and it could be poised to trend higher as tax-loss selling pressure fades soon.
    • Ceragon Networks might have heightened takeover potential due to its low valuation.
  • The 'Immense Opportunity' Is Not In Exxon, It's In Small-Cap Oil Stocks
    Dec. 12, 2014 XOM 52 Comments

    Summary

    • Oil prices may not go as low as some expect and, even if they do, they probably will quickly rebound.
    • The global economy appears poised for long-term growth, and the recent drop in oil prices is only likely to increase oil consumption and economic activity.
    • Many investors are buying Exxon shares due to a slight pullback in that stock, but the really immense opportunity appears to be in small-cap oil stocks.
    • The relative strength in Exxon could be a sign that oil is not going to see a significant additional decline.
    • Small-cap stocks that have strong balance sheets, significant hedges, and even multi-year contract backlogs are worth buying now.
  • The Odds Of An Emergency OPEC Meeting Are Going Up
    Dec. 12, 2014 CVX, USO, OIL 23 Comments

    Summary

    • Many investors seem convinced that Saudi Arabia is interested in a never-ending price war, but this makes zero business sense.
    • Oil is a valuable resource that is not going to be pumped out at low prices forever.
    • The global economy is much stronger than it was in 2009, so a return to those low price levels seems completely unjustified by the current fundamentals.
    • OPEC is likely to take emergency action if oil does not stabilize soon and Saudi Arabia appears willing to act now, if other members act.
  • True Bargains Emerge Amid The Oil Stock Rubble: Abraxas Is Worth More Than $3
    Dec. 9, 2014 AXAS 20 Comments

    Summary

    • Oil demand is likely to increase with prices at these levels, plus, the 5-year futures curve is predicting $80 oil.
    • If you seek real opportunities and bargains now, the small-cap oil stocks are the place to be, not the major integrated oils like Chevron which is not down much.
    • Emotional, fear-based selling, forced margin call selling and tax-loss selling pressure has temporarily and unfairly punished many smaller oil stocks.
    • Abraxas Petroleum has been pushed down to just about 5 times earnings and it is hedged around 80% of its production for the next two years at about $85.
    • This $2.40 stock could be poised for a very significant rally into year end as bargain hunters take notice and as tax-loss selling fades and shorts cover.
  • VOXX International: 6 Reasons Why This $8 Consumer Tech Stock Is A Top Pick For 2015
    Dec. 5, 2014 VOXX 7 Comments

    Summary

    • VOXX International is a little-known consumer tech products company that has some world famous brands and new product launches.
    • This stock has been challenged by some product launch delays in 2014, but it has recently launched a couple of very promising products including "Singtrix".
    • It is also poised to launch the "360Fly" camera in early 2015, which could capture a portion of the GoPro video camera market.
    • With holiday and consumer sales expected to benefit significantly from cheap oil, earnings estimates for VOXX might be too low.
    • VOXX shares are undervalued and could also be poised for a Santa Claus and January Effect rally, as tax-loss selling soon fades.
  • Natural Gas Stocks Are 'Strong Buys' As Seasonal Demand Is Due To Spike
    Dec. 4, 2014 EROC, UNG, CHK 13 Comments

    Summary

    • Not all energy stocks are exposed to weaker oil prices thanks to hedges or because production is mostly natural gas and liquids.
    • Some natural gas stocks have been unfairly dragged down by the pullback in oil and this has created a buying opportunity.
    • In contrast to oil, natural gas prices have been solid for the past couple months, and have started to rise.
    • Natural gas could rise significantly in the coming months and take stocks in this sector higher as well.
  • Eagle Rock: With A Yield Over 10%, This Well Hedged MLP Is Worth Much More Than $3
    Dec. 3, 2014 EROC 30 Comments

    Summary

    • After a $1.34 billion deal, Eagle Rock deserves a fresh look from investors as this stock does not deserve the recent pullback below $3.
    • This stock is significantly undervalued when compared to other MLPs and when considering book value which is about $4.87 per share.
    • Eagle Rock has a very strong balance sheet now and the funds to complete a $100 million share buyback.
    • It also offers a yield of more than 10%, and some analysts believe the company will raise the payout in 2015.
    • About 76% of Eagle Rock's production is gas or natural gas, which has been firm, and it is nearly 80% hedged on oil for the next couple of years.
  • The Oil Stock Crash Is A Major Buying Opportunity
    Dec. 2, 2014 MDR, WG, USO 6 Comments

    Summary

    • The crash in oil stocks is providing long-term investors with a major buying opportunity.
    • Demand for oil remains strong and is likely to rise as cheap oil boosts global economic growth and as U.S. shale growth is curtailed.
    • The current excess supply on the market will eventually be worked off and investors should realize that OPEC is sowing the seeds of the next big spike.
    • Cheap oil stocks are worth averaging into now, especially in retirement accounts, which are ideal for long-term investments.
  • OPEC Does Not Cut Production: What Should Investors Do Now?
    Nov. 28, 2014 CVX, USO, OIL 8 Comments

    Summary

    • OPEC decided to not cut production, but there might be political motivations behind the move which may be temporary at best.
    • Cheap oil is likely to cause consumption to rise significantly, and fuel more global growth which will also fuel more demand.
    • Cheap oil could curtail U.S. shale oil and renewable energy investments, which could ultimately lead to another oil super spike in the future.
    • Investors should use this opportunity to buy shares in beaten down oil companies that have strong balance sheets, significant contract backlogs and international exposure.
  • Petrobras: Buy This 'Black Friday' Oil Stock Bargain While It's Still On Sale
    Nov. 27, 2014 PBR 44 Comments

    Summary

    • A decline in oil and negative headlines has cut Petrobras shares in half over the past few months.
    • This pullback is overdone and negative investor sentiment is creating an ideal buying opportunity for the long-term.
    • Petrobras has set goals to roughly double production by 2020 and analysts expect it to earn nearly $2 per share in 2015.
    • Petrobras shares could rally into late December and January as tax-loss selling pressure ends.
  • OPEC Meets: Why The Oil Sector Might Not Fall, Even If There Are No Production Cuts
    Nov. 26, 2014 USO 5 Comments

    Summary

    • Investors might be putting too much emphasis on the upcoming OPEC meeting.
    • Shorts might have already overplayed their hand by expecting oil to drop much further, even if OPEC fails to cut production.
    • The oil markets might have already priced in this news, meanwhile oil stocks may have already bottomed out.
    • Political factors could be behind the lack of willingness to cut production, and if so, may only be temporary.
    • Investors should focus on the longer term buying opportunity the decline in oil is now offering.