Dell Could Repurchase 25% Of Its Shares In The Next 12 Months And Barely Dent Its Cash Hoard [View article]
we have been looking at DELL for a while, as its valuation has become more and more appealing. as a current DELL shareholder, what are your thoughts on Dell's turnaround plans to diversify away from the commodity PC business?
Buy Starbucks To Give Your Portfolio A Caffeinated Boost [View article]
It is true that Starbucks is not the only kind of coffee available. However, its multi-channel approach will provide it with a significant growth opportunity ahead for those that want Starbucks coffee at home. In addition, Starbucks had a certain cachet to it that can be leveraged internationally, which provides even more opportunity in the years ahead. Dunkin and McDonald's make fine coffee, but Starbucks is a more compelling investment in our opinion.
Buy Amazon.com As It Stands Up To Apple And Revolutionizes Retail [View article]
it is true that Amazon's earnings have fallen this year, but the company is forecast to post record earnings in 2012. Argus has them at $3.56/share, Credit Suisse at $2.90, and S&P is at $3.79/share. Even usins CS estimates, AMZN would still post higher EPS in 2012. This is how Amazon operates. It does not shy away from spending one year to boost earnings down the road.
Citigroup: Short-Term Pain, Long-Term Gain [View article]
I think it highlights what led us to Citi in the first place. Say what you will about Citi's performance here in the US, but it is the only major US bank investing in its operations abroad. BofA is in no position to do so, JPMorgan is battling fires on too many fronts, and Wells Fargo seems to be content being a US bank. (though we like WFC's position in the US banking sector)
It is this unique position in emerging markets that will pay-off for Citi in the long term
Buy Amazon.com As It Stands Up To Apple And Revolutionizes Retail [View article]
Amazon has one of the strongest management teams in the industry, and it has shown its commitment to creating shareholder value time and again.
As for the P/E ratio, we do acknowledge that it is high, but P/E ratios are only 1 of the many ways to evaluate a stock. Stocks with high P/E ratios should not be avoided simple because they are expensive. There are plenty of stocks with low P/E ratios that have languished as their higher priced peers have grown. Amazon has had a high P/E ratio for almost its entire existence as a public company, yet it has still risen almost 2500% over the last decade, while Microsoft, the definition of a "cheap" company, has fallen 5%.
P/E ratios are important, but they are not a "tell-all" when it comes to a stock. Underlying business fundamentals need to be taken into consideration as well, and Amazon's underlying business is growing at a torrid pace. True, earnings are lower than where some would like them to be, but Amazon has a long track record of proving its critics wrong.
Buy Amazon.com As It Stands Up To Apple And Revolutionizes Retail [View article]
We have enjoyed watching Apple rise in value, and enjoy all their products. We are "fanboys" too, of both the stock and the products. Apple will no doubt lead the tablet market, but there should be room for other tablets in the market as well. Apple is not the only company worth investing in, no matter how wonderful we think it is.
Amazon is no doubt expensive, but all rapidly growing companies are. S&P forecasts earnings of $1.02 a share in the 4th quarter, which would be a record for Amazon. The trailing P/E is 95.2 (according to Forbes) This is not a stock for people uncomfortable with such high valuations, but there are those who wish to pay up for growth. (salesforce is a good example of this) The Kindle itself may sell for a loss, but the sale of e-books makes up for it. And Amazon sells books not only on the Kindle, but on iOS and Android devices. Amazon is currently fighting the tax bill passed in California, so it remains to be seen who the winner will be.
Amazon is not a short-term play, nor is it a value play. But few companies are growing as rapidly as Amazon, and for investors looking for a high growth stock, Amazon could be a good fit.
Buy Amazon.com As It Stands Up To Apple And Revolutionizes Retail [View article]
this is by no means a replacement for the ipad. however we feel that amazon's backing will differentiate it from other non-Apple tablets. the focus here is on Amazon's content, which is something no one other than apple has been able to provide.
Wells Fargo: Buy A Bank Truly Focused on Banking [View article]
while i would take the words of a WFC worker with a grain of salt, Wells should most definitely trade higher than where it is now, and once the EU situation is addressed, WFC (and Citi we hope) will show their true potential
Wells Fargo: Buy A Bank Truly Focused on Banking [View article]
Thanks for the compliment. We would be long WFC if we were not long Citi, which we are due to our longer time horizon. For us, Citi is a riskier, albeit possibly more rewarding play. All the banks are being dragged down due to European fears. Wells doesn't even have subprime exposure, (Wachovia is being managed far more prudently than it would be at any other bank) let alone EU exposure. Sooner or later, the extraordinary correlation in financials to one another will end. Banks do not raise their dividends lightly, because a dividend cut at a bank conversely means much more than at a non-financial firm. We think the raising of the dividend AND resumption of stock repurchases is a true sign of confidence from management (JPMorgan has done the same, but the headline risks there are far greater, as are the subprime issues)
Buy Sprint And Get Clearwire (And The Now Network) At A Discount [View article]
What we mean to say is that the spectrum on its own is worth $17 per share. CLWR's value as a whole will of course decrease when you include the debt. For the purposes of this article, we wanted to highlight the value of the spectrum as it relates to Sprint. Sprint lowered its voting stake in CLWR to 49.8%, just enough so that should the company fail to pay its debts, which we think is unlikely, Sprint will not be held liable for it. As long as Clearwire continues to service its debt, all that matters to Sprint is the value of the spectrum, not the debt, which is the concern of Clearwire's bondholders. The debt is of concern to Sprint only if Clearwire defaults, which we think is unlikely.
Buy Sprint And Get Clearwire (And The Now Network) At A Discount [View article]
While we do think CLWR is undervalued, investing in Sprint not only allows to have exposure to CLWR but to the upside potential in its wireless business. For us, it was simply a matter of what we wanted to have exposure to, and investing in Sprint allowed us to have both.
Whole Foods: A Secular Play On Healthy Eating [View article]
biobat is correct, stocks often do not trade in accordance with fundamentals. Apple fell to $80 a share in the depths of the financial crisis, yet its business was just fine. If a business is operating properly, its stock will correct itself over time, as the chart above shows Whole Foods has done
IBM: Buy Big Blue To Put Some Green In Your Portfolio [View article]
That is a fair point. Our model balance sheet is one in the mold of Apple or a Qualcomm, where there is no debt whatsoever, or a Costco/EMC, where cash exceeds debt. IBM does not meet these criteria, but we still think the balance sheet is perfectly fine, due not only to the factors you pointed out, but its FCF as well
Qualcomm: A Winner On All Smart Phone Fronts [View article]
exactly. our thesis for investing in Qualcomm was that the business model was so compelling. QTL's royalties are a cash cow and QCT is wonderfully positioned to benefit from whoever wins the smartphone race.
Dell Could Repurchase 25% Of Its Shares In The Next 12 Months And Barely Dent Its Cash Hoard [View article]
Buy Starbucks To Give Your Portfolio A Caffeinated Boost [View article]
Buy Amazon.com As It Stands Up To Apple And Revolutionizes Retail [View article]
Citigroup: Short-Term Pain, Long-Term Gain [View article]
It is this unique position in emerging markets that will pay-off for Citi in the long term
Buy Amazon.com As It Stands Up To Apple And Revolutionizes Retail [View article]
As for the P/E ratio, we do acknowledge that it is high, but P/E ratios are only 1 of the many ways to evaluate a stock. Stocks with high P/E ratios should not be avoided simple because they are expensive. There are plenty of stocks with low P/E ratios that have languished as their higher priced peers have grown. Amazon has had a high P/E ratio for almost its entire existence as a public company, yet it has still risen almost 2500% over the last decade, while Microsoft, the definition of a "cheap" company, has fallen 5%.
P/E ratios are important, but they are not a "tell-all" when it comes to a stock. Underlying business fundamentals need to be taken into consideration as well, and Amazon's underlying business is growing at a torrid pace. True, earnings are lower than where some would like them to be, but Amazon has a long track record of proving its critics wrong.
Buy Amazon.com As It Stands Up To Apple And Revolutionizes Retail [View article]
Amazon is no doubt expensive, but all rapidly growing companies are. S&P forecasts earnings of $1.02 a share in the 4th quarter, which would be a record for Amazon. The trailing P/E is 95.2 (according to Forbes) This is not a stock for people uncomfortable with such high valuations, but there are those who wish to pay up for growth. (salesforce is a good example of this) The Kindle itself may sell for a loss, but the sale of e-books makes up for it. And Amazon sells books not only on the Kindle, but on iOS and Android devices. Amazon is currently fighting the tax bill passed in California, so it remains to be seen who the winner will be.
Amazon is not a short-term play, nor is it a value play. But few companies are growing as rapidly as Amazon, and for investors looking for a high growth stock, Amazon could be a good fit.
Buy Amazon.com As It Stands Up To Apple And Revolutionizes Retail [View article]
Wells Fargo: Buy A Bank Truly Focused on Banking [View article]
Wells Fargo: Buy A Bank Truly Focused on Banking [View article]
Buy Sprint And Get Clearwire (And The Now Network) At A Discount [View article]
Buy Sprint And Get Clearwire (And The Now Network) At A Discount [View article]
Buy Sprint And Get Clearwire (And The Now Network) At A Discount [View article]
Whole Foods: A Secular Play On Healthy Eating [View article]
IBM: Buy Big Blue To Put Some Green In Your Portfolio [View article]
Qualcomm: A Winner On All Smart Phone Fronts [View article]