Seeking Alpha

Helix Investment Research

 
View as an RSS Feed
View Helix Investment Research's Comments BY TICKER:
Latest  |  Highest rated
  • Sonus Networks: Connecting Shareholders To Double-Digit Returns In 2014 [View article]
    The company you're referring to is Sonos (privately held) not Sonus Networks.
    Feb 26, 2014. 02:02 PM | Likes Like |Link to Comment
  • Air Canada: Finding Value With Our Friends To The North [View article]
    With regards to the Canadian economy, the current forecast from the Bank of Canada calls for 2.3% GDP growth in 2014 (http://bit.ly/1dRyooM), ahead of their final estimates for 1.6% growth for 2013. We don't believe that selecting a few routes is a truly appropriate measure of measuring load factors (but it could be somewhat useful, depending on the routes selected), for each route has its own underlying economics that help determine load factors. Furthermore, the dates selected are also of great importance.
    Feb 20, 2014. 09:42 AM | Likes Like |Link to Comment
  • Air Canada: Finding Value With Our Friends To The North [View article]
    4-Traders itself has data fed to it via Reuters, but occasionally the figures differ slightly from what Reuters itself is forecasting. It would be simpler if Reuters released 2016 estimates on its own website, but unfortunately that isn't the case. Within the peer comparison table, the net cash "issue" is a function of how Excel treats the Canadian dollar vs. the US dollar; for some reason, it does not allow for the addition of parentheses to the figure, and in the process of uploading the table into the article, the red font used to distinguish the net debt was lost. However, the net debt is carried throughout the lower portions of the table. As for our projected P/E multiples, that was outlined in the peer comparison & valuation section by taking the peer average P/E multiples for that year and applying the relevant premium.
    Feb 20, 2014. 09:37 AM | Likes Like |Link to Comment
  • SoftBank: For Exposure To Alibaba, Look To Tokyo, Not Sunnyvale [View article]
    Conglomerate discount are most typically applied to companies that have significant differences in their actual operating divisions; Vivendi is a primary example. SoftBank may have a diverse set of assets, but these are primarily financial in nature, such as its stake in Yahoo Japan or Alibaba, or they are synergistic, such as its majority stake in Sprint and its own core mobile operations.
    Feb 17, 2014. 05:43 PM | Likes Like |Link to Comment
  • SoftBank: For Exposure To Alibaba, Look To Tokyo, Not Sunnyvale [View article]
    Schwab's analysis is likely one that is computer-generated, and we never place much emphasis on the output of such analysis, for it is very difficult for it to capture the unique nature of the companies in question. As for liquidity, average volume is around 300,000 shares daily for SFTBY, which can be worked with, so long as limit orders are used. As for why the stock trades OTC, that is a question for SoftBank's management. Many prominent foreign companies, such as BMW, Burberry, or Credit Agricole all trade OTC, as opposed to the NYSE or NASDAQ, and the decision to do so is one that is made by each company's own management team.
    Feb 17, 2014. 05:40 PM | 2 Likes Like |Link to Comment
  • RF Micro Devices: A Return To Growth Set To Reward Shareholders [View article]
    While we do see a pathway to a higher multiple, we did not wish to be overly optimistic in our assumptions; RF Micro still has to prove to the market that it has put its Nokia issues fully behind it, and that the customer base is diversifying away from Samsung. And when those points are met, we do believe that the multiple could expand further.
    Feb 5, 2014. 07:45 PM | Likes Like |Link to Comment
  • Regions Financial: Double-Digit Upside As Southern Recovery Continues [View article]
    The largest risk is probably material deterioration in southern housing, especially Florida, given that Regions is still exposed to the state via its AmSouth loan portfolio, albeit at lesser levels than in years past
    Jan 6, 2014. 12:17 AM | Likes Like |Link to Comment
  • TIM Participações: As The Chess Pieces Move In Europe, Double-Digit Upside In Brazil [View article]
    The Brazilian government is fully aware that the country is still in need of meaningful wireless infrastructure investment, so although it is certainly taking a "progressive" stance towards the industry (whether or not this is a good approach for the nation goes beyond the scope of this article), we doubt that it will be to the scale that is seen in the country's energy sector. The government knows that if it pushes too hard, capex will fall, and that runs counter to their goal of raising living standards and ensuring that growth flows through to all levels of society. Other than the other three major Brazilian carriers, we don't believe that there are other Brazilian entities that can move rapidly to acquire TIM, but we see such an outcome as unlikely. Sources close to the government have said that Telefonica has 18 months to resolve the TIM issue, and although Telefonica prefers to break TIM apart and sell off its assets, a firesale of the company would open Telefonica (and Telecom Italia) to shareholder lawsuits across at least two continents. And in any case, it is important to remember that forcing a firesale of TIM doesn't help Telefonica. For better or worse, the company has committed to boosting its stake in Telecom Italia, and one of the prime goals of selling TIM is to deleverage TI's balance sheet, which the market has made clear is an overhang on its stock, and selling TIM at below fair value would hurt TI, and by extension, Telefonica.
    Dec 30, 2013. 01:59 AM | Likes Like |Link to Comment
  • TIM Participações: As The Chess Pieces Move In Europe, Double-Digit Upside In Brazil [View article]
    For this article, we only examined TI through the prism of how it might approach a sale of TIM, and what factors make such an outcome likely. We did not spend much time examining TI's equity, so we are not in a position to make much of an informed judgement on TI's savings shares.
    Dec 30, 2013. 01:52 AM | Likes Like |Link to Comment
  • TIM Participações: As The Chess Pieces Move In Europe, Double-Digit Upside In Brazil [View article]
    We are indeed long shares of TIM, the company's ADR's trade under the ticker TSU
    Dec 29, 2013. 02:25 AM | Likes Like |Link to Comment
  • TIM Participações: As The Chess Pieces Move In Europe, Double-Digit Upside In Brazil [View article]
    At this point it is difficult to say. Telefonica has made it clear that it wants to double down on its investment in TI (whether or not that move is a good idea or not is an issue for another day). But by doing so, it has brought down the attention of Brazilian regulators, and if it does not reduce its presence in the country, it runs the risk of seeing its licenses revoked. Therefore, if the status quo is preserved, the prime loser will be Telefonica. As for TI and TIM, the outcome largely depends on price; if TIM is sold for too little, TI's goal of deleveraging is impacted, and Telefonica will likely see lawsuits over undue influence over TI. And TIM will also be impacted, since it will be sold for less than it should. But, if they push for an absurd premium, then no deal will be done, and that runs counter to what TI needs to do.
    Dec 28, 2013. 02:34 PM | Likes Like |Link to Comment
  • Volaris: The Spirit Airlines Of Mexico Is Poised To Soar [View article]
    Southwest/AirTran already fly to Cancun, Mexico City, and San Jose Cabo from a variety of destinations within the US, and to date, it does not appear that this has been an issue for Volaris. Volaris also has an employee profit sharing program, so they do get a chance to participate in the airline's upside
    Dec 13, 2013. 01:56 PM | 1 Like Like |Link to Comment
  • Volaris: The Spirit Airlines Of Mexico Is Poised To Soar [View article]
    Book value is 4.08 pesos as of Q3 2013, so Volaris' P/B is around 4.67
    Dec 13, 2013. 01:54 PM | Likes Like |Link to Comment
  • Volaris: The Spirit Airlines Of Mexico Is Poised To Soar [View article]
    From what we understand, the reason Aero California's operations were suspended for unpaid debts to the government.
    Dec 13, 2013. 01:46 PM | Likes Like |Link to Comment
  • Volaris: The Spirit Airlines Of Mexico Is Poised To Soar [View article]
    Aero California ceased operations in 2008 as its operations were suspended by the Mexican government and employees went on strike
    Dec 12, 2013. 08:08 AM | Likes Like |Link to Comment
COMMENTS STATS
654 Comments
362 Likes