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  • DTS: Strong Audio Trends Continue, Lifting Price Target
     • Tue, Nov. 18 DTSI 1 Comment

    Summary

    • Although shares have returned almost 44% in under three months, further upside remains.
    • Strong Q3 results and raised 2014 guidance show that DTS is continuing to execute well.
    • Weakness in internal controls has been remedied.
    • A series of new licensing agreements and acquisitions have further expanded the DTS ecosystem.
  • Investment Technology Group: A Profitable Investment In The Global Capital Markets
     • Tue, Nov. 11 ITG Comment!

    Summary

    • Despite a 3-decade presence on Wall Street, few investors are likely to have heard of ITG.
    • ITG has a clean balance sheet, with over 16% of its market capitalization in net cash.
    • Increasingly diverse revenue base, from both a geographic and business perspective is helping drive double-digit growth in operating profits and EPS.
    • Management has a solid track record of returning capital to shareholders; since 2009, over 20% of shares have been repurchased.
  • Polycom: As The Recovery Continues, Share Gains To Come
     • Thu, Oct. 30 PLCM Comment!

    Summary

    • Ahead of a return to revenue growth in 2015, Polycom continues to restructure its operations, leading to expanding operating margins and double-digit EBIT growth.
    • Balance sheet remains solid, with over 20% of the company's market capitalization in net cash.
    • Latest market share figures show that Polycom is gaining share, further gains likely in Q3 2014.
    • Despite further restructuring potential, shares continue to trade at modest multiples.
  • Infinera: Raising Price Target As Performance And Potential Grow
       • Sat, Oct. 25 INFN 1 Comment

    Summary

    • Solid Q3 results and Q4 guidance demonstrate that Infinera is navigating uncertainty in the networking sector.
    • Continued cost discipline and long-term gross margin expansion is positioning the company for 2015 EPS growth approaching 100%.
    • Growing cash balances, with potential for capital deployment in 2015.
    • Raising price target to $15 as solid execution and guidance warrant upward revisions to multiple.
  • QLogic: A Logical Buy For 2015
       • Wed, Oct. 22 QLGC 8 Comments

    Summary

    • Despite clear signs of progress in its turnaround, shares of QLogic remain undervalued on both an absolute and relative basis.
    • Signs of stabilization in the Fibre Channel market and continued growth in Ethernet sales have allowed the company to expand its market share.
    • Despite gross margin pressures, tight cost controls have helped minimize the impact to operating margins.
    • Pristine, debt-free balance sheet, with almost 30% of market capitalization in cash.
  • Check Point Software Technologies: Calling Activists As Cash Balances Continue To Increase
       • Sat, Oct. 18 CHKP 5 Comments

    Summary

    • Check Point's balance sheet is bloated with cash, with net cash & investments amounting to almost a third of the company's market capitalization.
    • The company's operating margins and cash flow generation are higher than any of its competitors, including Microsoft.
    • Combination of steady, but uninspiring revenue and EPS growth and continued growth in cash balances has created an attractive entry point for activist investors.
    • Check Point has a long track record of share buybacks; since 2006 the company has bought back over 20% of its shares.
  • HealthEquity: A Niche Pure Play On Healthcare Reform
       • Sat, Oct. 4 HQY 14 Comments

    Summary

    • HealthEquity offers investors a unique and focused opportunity to profit from the ongoing implementation of the Affordable Care Act.
    • Solid market position and product offerings have led to double-digit revenue and profit growth.
    • Scalable business model has resulted in expanding EBITDA margins, with further increases to occur in the next several years.
    • Pullback from post-IPO highs offers an attractive entry point for long-term investors.
  • Ambarella: Finding Gains Beyond GoPro
       • Mon, Sep. 29 AMBA 2 Comments

    Summary

    • A focus on the company's relationship with GoPro has obscured the growth potential of Ambarella's other segments.
    • The company is leveraged to multiple global trends that are driving the adoption of newer and more complex cameras, and the chips that power them.
    • Continued improvements in operating leverage are flowing through to the bottom line, driving double-digit EPS growth.
    • Volatility in shares of GoPro can be used to initiate positions if they lead to a decline in shares of Ambarella.
  • Bed Bath & Beyond: Gains To Come Beyond 2014
    Mon, Sep. 29 BBBY 9 Comments

    Summary

    • Despite double-digit cash flow growth, shares of Bed Bath & Beyond trade well below its retail peers.
    • Headline results have been pressured by internal investments, which are set to begin yielding dividends in 2015.
    • As a percent of sales, Bed Bath & Beyond generates far more operating cash flow than any of its direct peers.
    • The company has a long-term track record of returning capital to shareholders, with over a third of the company's shares bought back in the past decade.
  • Best Buy: A Solid Buy As The Recovery Continues
       • Tue, Sep. 16 BBY 1 Comment

    Summary

    • Shares undervalued on both an absolute and relative basis as the retailer's turnaround continues.
    • Despite negative headlines, balance sheet remains clean, with over $4 per share in net cash & investments.
    • The Renew Blue restructuring plan is yielding double-digit growth in operating income and EPS.
  • Qantas: Investing In The Recovery Of Australia's Leading Airline
       • Sat, Sep. 6 QUBSF Comment!

    Summary

    • Qantas' underlying fiscal 2014 performance is stronger than headlines suggest.
    • Erroneous narratives that its issues have been profitable for Virgin Australia has dampened sentiment.
    • Balance sheet is stronger than headlines suggest, with ample liquidity.
    • Industry-leading loyalty program is undervalued by investors.
    • Changes in Australian government policy have opened door to new foreign investors.
  • Arris Group: Finding Profits In Your Cable Box
       • Wed, Sep. 3 ARRS 11 Comments

    Summary

    • The acquisition of Motorola Home has been very successful, resulting in double-digit growth in operating income and EPS.
    • Post-earnings selloff on unfounded concerns surrounding bookings has created an attractive entry point.
    • Continued balance sheet deleveraging will lead to increased ability to return capital to shareholders.
    • Despite year-to-date gains, shares continue to trade at modest multiples, both on an absolute and relative basis.
  • DTS Inc.: A Mundane Business, With Exciting Profits
       • Fri, Aug. 22 DTSI 7 Comments

    Summary

    • Margin-rich royalty revenues result create business with material operating leverage.
    • Partnerships with majority of leading consumer electronics companies create tailwinds as network-connected electronics sales continue to grow.
    • Clean balance sheet with over $2 per share in net cash.
  • Infinera: As Optical Networking Grows, So Too Does The Upside
       • Tue, Aug. 19 INFN 7 Comments

    Summary

    • Infinera's leading position in optical transport networking is not being adequately reflected in its stock price.
    • Historically erratic financial results and concerns of Infinera's position as a mid-size company have hampered its ability to command an appropriate valuation.
    • Forward growth is far above that of its peers, when measured by revenue, EBITDA, and EPS, but shares do not trade at a commiserate premium.
    • Clean balance sheet, with almost $2 per share in net cash and ample opportunities for capital deployment.
  • CUR Media: A New, And Potentially Worthy Challenger To Pandora & Spotify's Crown
       • Tue, Jun. 3 CURM 1 Comment

    Summary

    • Although its streaming service has yet to launch, CUR Media offers an intriguing alternative to Pandora and Spotify.
    • The company is being guided by blue-chip veterans from the entertainment industry, including the founder of MTV and the former CEO of RCA Records.
    • As Spotify moves closer to an IPO, shares of CUR Media may begin to rise alongside it.
    • While risky, shares of CUR Media have high potential as well; investors should consider if their portfolios can accommodate such an investment.
  • Flextronics: Solid Free Cash Flow Deployment And Cost Controls To Drive Further Upside
       • Thu, May. 15 FLEX 5 Comments

    Summary

    • At over 12%, Flextronics' free cash flow yield is the highest in its peer group.
    • Tight cost controls are set to underpin expanding operating profit and margins.
    • Flextronics has demonstrated a commitment to returning capital, having bought back almost 10% of the company in fiscal 2014 alone.
    • The company's upcoming May 21 analyst and investor day will likely feature further updates on capital allocation and cost controls, which may drive further upside.
    • Diversity of customer base may limit ability for short-term momentum rallies, but offers long-term stability.
  • American Airlines Group: As The Integration Continues, Solid Upside Ahead
       • Tue, Apr. 29 AAL 58 Comments

    Summary

    • Despite leading the domestic airline industry in forward EPS growth, American sports the industry's lowest P/E multiple.
    • Hundreds of millions of dollars in interest savings are set to flow through to the company's bottom line.
    • American now has a lower cost structure cost than either Delta or United, yet receives little credit for it.
    • Through Chapter 11, leverage has been reduced to industry-average levels.
    • Conservative synergy targets create room for possible increases to the company's forecasts.
  • Symantec: With Activists And PE Firms Calling, The Time To Buy Is At Hand
       • Wed, Apr. 23 SYMC 2 Comments

    Summary

    • Recent turmoil at Symantec has created an attractive entry point.
    • Hiring of JPMorgan as an advisor implies management believes activist investors and private equity firms are a threat.
    • Symantec has no tools with which to defend itself against activist shareholders or private equity firms.
    • Sum-of-the-parts valuation suggests sizable undervaluation.
    • Analyst Day in late May and selection of permanent CEO may act as catalysts for the stock.
  • Lifetime Brands: A Mundane Company, With Exciting Profit Potential
       • Wed, Apr. 16 LCUT 15 Comments

    Summary

    • Lifetime's mundane business belies its profit potential.
    • The company expanded gross margins during the key holiday quarter, alongside rising revenues and EPS.
    • With insiders owning 22% of outstanding shares, capital is being deployed in an accretive fashion.
    • Continued moves to enlarge brand portfolio and international presence will increase Lifetime's addressable market.
  • G-III Apparel Group: Unjustified Discount Belies Solid Execution And Opportunities Ahead
       • Tue, Apr. 8 GIII 4 Comments

    Summary

    • G-III managed to not only grow revenues, EPS, and EBITDA in the holiday quarter, but posted rising gross margins across all segments.
    • Despite solid performance in fiscal 2014, shares trade at meaningful discounts to peers.
    • With management owning over 16% of outstanding shares, clear incentive to deploy capital in an accretive fashion.
  • Yahoo: As Alibaba Goes Public, Value Of Underlying Business Will Begin To Shine
    Editors' Pick • Mon, Mar. 31 YHOO 25 Comments

    Summary

    • Net of its stakes in Alibaba, Yahoo Japan, and its cash, Yahoo's core business is being valued at less than 2x operating cash flow.
    • CEO Marissa Mayer and CFO Ken Goldman have made material investments to turn Yahoo around, and they are beginning to pay off.
    • Once Alibaba becomes public, investor focus will likely shift to Yahoo's core business, which is set to improve further in 2014.
  • UniCredit: With Dirty Laundry Now Aired, Underlying Recovery Can Come Into Focus
       • Thu, Mar. 27 UNCFF 1 Comment

    Summary

    • Beneath the surface of a record net loss, underlying performance at UniCredit is beginning to improve.
    • Continued steps to strengthen the balance sheet will further boost investor confidence.
    • Sizable rally after disclosure of record net loss shows investors are pleased with management's decision to air UniCredit's "dirty laundry".
  • Nexstar Broadcasting Group: In 2014, Its Star Will Continue To Shine
       • Sat, Mar. 15 NXST 14 Comments

    Summary

    • Sizable pullback has created an attractive entry point in NXST.
    • Balance sheet is stronger than a cursory glance suggests.
    • Dividend increase in early 2014 suggests confidence in future cash flows.
  • Kate Spade & Company: The Crown Jewel Begins To Shine, For Investors And Bidders
       • Tue, Mar. 4 KATE 12 Comments
  • Sonus Networks: Connecting Shareholders To Double-Digit Returns In 2014
       • Tue, Feb. 25 SONS 10 Comments
  • Air Canada: Finding Value With Our Friends To The North
       • Wed, Feb. 19 AIDIF 8 Comments
  • SoftBank: For Exposure To Alibaba, Look To Tokyo, Not Sunnyvale
       • Sat, Feb. 15 SFTBY 31 Comments
  • RF Micro Devices: A Return To Growth Set To Reward Shareholders
       • Tue, Feb. 4 RFMD 12 Comments
  • Juniper Networks: Solid Upside Ahead From Internal And External Activists
    Thu, Jan. 30 JNPR Comment!
  • ING Group: A Recovery In The Making To Drive Double Digit Upside
    Editors' Pick • Thu, Jan. 23 ING 3 Comments
  • First Citizens Banc: Sleepy Banking, Meaningful Profits
       • Wed, Jan. 15 FCZA 2 Comments
  • CrĂ©dit Agricole: Farming Double-Digit Returns At France's Largest Bank
       • Dec. 31, 2013 CRARY 8 Comments