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  • DTS Inc.: A Mundane Business, With Exciting Profits
     • Yesterday, 5:00 AM DLB, PHG, DTSI 3 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 CIEN, CSCO, DTV 6 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 P, 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 BHE, CLS, JBL 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 DAL, LUV, UAL 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 JCP, 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 JNY, KORS, PERY 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, BABA 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 KKR, 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 GTN, LIN, SBGI 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 RENN, S, YHOO 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 CSCO, JNPR Comment!
  • ING Group: A Recovery In The Making To Drive Double Digit Upside
    Editors' Pick • Thu, Jan. 23 BNPQY, CRARY, CRZBY 3 Comments
  • First Citizens Banc: Sleepy Banking, Meaningful Profits
       • Wed, Jan. 15 FCNCA, FCZA 2 Comments
  • Crédit Agricole: Farming Double-Digit Returns At France's Largest Bank
       • Dec. 31, 2013 BNPQY, SCGLY, CRARY 8 Comments
  • TIM Participações: As The Chess Pieces Move In Europe, Double-Digit Upside In Brazil
       • Dec. 27, 2013 AMX, DISH, DTEGY 12 Comments
  • In Defense Of Prada: Parsing Q3 Results To Address Slowdown Concerns
    Dec. 26, 2013 PRDSY 1 Comment
  • Regions Financial: Double-Digit Upside As Southern Recovery Continues
       • Dec. 19, 2013 BBT, CMA, FHN 4 Comments
  • Meaningful Upside Ahead As More And More Consumers Join The Devil In Wearing Prada
       • Dec. 14, 2013 PRDSY 3 Comments
  • Volaris: The Spirit Airlines Of Mexico Is Poised To Soar
       • Dec. 11, 2013 SAVE, VLRS 25 Comments
  • Pacific Sunwear: Finding Sunshine Amidst Teen Retail Gloom
       • Dec. 10, 2013 AEO, ARO, GAIN 2 Comments
  • Tilly's: Reset Of Expectations, Favorable Valuation To Drive Recovery In 2014
       • Dec. 5, 2013 AEO, ANF, ARO 2 Comments
  • Children's Place: Child-Sized Clothes, Adult-Sized Potential
       • Dec. 3, 2013 PLCE 1 Comment
  • Commtouch Software: A Return To Earnings Growth To Reward Investors
       • Nov. 26, 2013 SYMC, TMICY, CYRN 6 Comments
  • Spirit Airlines: A Solid Derivative Play On The US Airways-American Airlines Deal
       • Nov. 15, 2013 ALK, DAL, ESYJY 11 Comments
  • Pericom Semiconductor: Recovering Business & Cash Deployment To Drive Upside
       • Nov. 12, 2013 PSEM 6 Comments
  • Defending RBS: Taking The Long-Term View Of The Internal Bad Bank
    Editors' Pick • Nov. 3, 2013 RBS 1 Comment