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  • Disney Offers Great Growth At A Low Price [View article]
    Disney's dividend may be lower than other Dow components, but it is a different sort of company. the financial profile of disney means that more money will be directed to wards investment in its projects, and dividend seeking investors would most likely look elsewhere for income, such as big pharma or utilities. however, the dividend is slowly but surely increasing, and in time, we think will match other Dow stocks over time.
    Oct 11 02:38 PM | Likes Like |Link to Comment
  • Disney Offers Great Growth At A Low Price [View article]
    disney does indeed have a dividend, its just paid annually
    Oct 10 08:52 PM | Likes Like |Link to Comment
  • Buy Chipotle As The Company Expands And Resists Recession Fears [View article]
    our comparison of CMG to apple is not in regard to the products the 2 companies sell. Rather, it is comparing the fact that neither of these 2 companies need a strong economy to grow sales and profits
    Oct 10 01:15 PM | 2 Likes Like |Link to Comment
  • Coach's International Growth Looks Promising [View article]
    tiffany's has great international growth, and its new stores should continue to support it. (we are long TIF) your article, while very insightful, makes it sound like there is no room in the luxury market for both COH and TIF. do you think that is the case?
    Oct 9 06:47 PM | Likes Like |Link to Comment
  • Buy Chipotle As The Company Expands And Resists Recession Fears [View article]
    we are buyers of CMG below $300, but all stocks should be sold once they reach a certain price. CMG at its 52 week high of $346.78 would be a point where we would take some off the table, at the very least. its ultimate value at current levels is between $370 and $400, in our opinion.

    in answer to your second questions, the key drivers for CMG are its disciplined store openings across the US, and its international expansion. Its first European location in London is doing great, and additional restaurants are coming to France and Germany. some people may be put off that the company is expanding into Europe at a time like this, but CMG caters to a particular demographic that is more resistant to economic issues. As for financing, CMG owns all its own restaurants, and the company's continued expansion is financed through its own cash flow. The company's debt is negligible, and cash flow per share has grown by an average of 30.4% annually over the last 5 years (per Schwab). the share count has stayed relatively constant, but we do not think CMG will meaningfully buy back stock as it is focused on expansion
    Oct 9 06:04 PM | 1 Like Like |Link to Comment
  • Buy Chipotle As The Company Expands And Resists Recession Fears [View article]
    first off, we would like to compliment you on a very well-written article. you note that you compare CMG's valuation relative to peers in determining its own value. However, the issue with this approach, in our mind, is that CMG's peers are growing much slower than it is, thus their own multiples drag down the sector average.
    Oct 9 04:25 PM | 1 Like Like |Link to Comment
  • Buy Chipotle As The Company Expands And Resists Recession Fears [View article]
    it is very difficult to time the markets, as we all know. but part of market-timing is an investors time horizon. for us, time horizons for most of our stocks are rather lengthy.

    it is true that an investor who bought CMG on 12/28/07 would have lost more than the S&P if they held their shares until the march '09 bottom. however, an investor who bought CMG on that date and held it until today would have gained 105% while the S&P 500 lost over 24%. (according to google finance)

    what many investors forget is that not every stock is suitable for every investor. there will be many people banging the table saying how cheap MSFT is, or how cheap INTC is, and we will say that there is a reason they are cheap, because they are companies unable to transition to the future. conversely, there will be investors unable to stomach the valuation of CMG, no matter what is presented to counter it.

    no two investors are alike, and each has different goals and objectives. for some, CMG has no place in their portfolio. for some, it does. we believe that CMG should be a part of a diversified portfolio, and that is why it is part of ours
    Oct 9 04:18 PM | 1 Like Like |Link to Comment
  • Buy Chipotle As The Company Expands And Resists Recession Fears [View article]
    while Europe does present macro-headwinds, data shows that CMG does not need employment growth to succeed. As long as the EU situation gets resolved somehow, and we think it will (despite the brinksmanship that seems to be prevailing among some in the EU) our economy will, at the very least, continue its slow recovery, which is just fine for CMG
    Oct 9 04:04 PM | 1 Like Like |Link to Comment
  • Buy Chipotle As The Company Expands And Resists Recession Fears [View article]
    while CMG does have a reputation for "non-authentic" mexcican food, it does present a unique twist on the concept, and it is a twist that has resonated with people. much of CMG's target demographic does not care about this reputation, and whether it is warranted or not. furthermore, CMG's London location is doing business at a much faster pace than a typical new US restaurant, implying that the concept can also resonate overseas
    Oct 9 04:02 PM | 1 Like Like |Link to Comment
  • Buy Chipotle As The Company Expands And Resists Recession Fears [View article]
    one of the main points in the CS report is that CMG does not need employment growth to succeed. CMG is indeed growing rapidly, and its international expansion should, in both CS' view and our view, continue to support the multiple
    Oct 9 03:55 PM | 1 Like Like |Link to Comment
  • Red Hat Is A Prudent Play On Open Source [View article]
    red hat is growing much faster than big-cap tech, and we think the PE ratio is warrented. the forward PE is 36.34

    http://yhoo.it/r8SVGP

    last year, RHT earnings grew 48.3%, and its sales have a CAGR of 26.7% over the last 5 years
    Oct 8 02:31 PM | Likes Like |Link to Comment
  • Buy Chipotle As The Company Expands And Resists Recession Fears [View article]
    we published an article today that highlighted Red Hat (RHT) as a company growing all across the world, even in Europe. They raised guidance on their last earnings call, which was on September 21. the issue with such an environment is that all stocks are lumped together. correlations at record highs prove this. not all companies need perfect economic environments to thrive. Apple does not, red hat does not, broadcom does not.
    Oct 7 10:43 PM | 1 Like Like |Link to Comment
  • Buy Chipotle As The Company Expands And Resists Recession Fears [View article]
    first of all, thank you for the reference to BRLI. we have done some more research on the stock and are intrigued. book value is $6.40 per share, earnings are growing, and we think medicare concerns will abate as the GOP cannot afford to alienate seniors, a core voting base for them.

    we bought chipotle several years ago, and have periodically bought and sold the stock as warranted. we fully believe in the adage that bears make money, bulls make money, but pigs get slaughtered (thanks jim cramer).

    we have often sold chipotle to take profits on the stock, but believe that now is a good time to buy, as the stock is off its highs, despite no change in the underlying fundamentals. MSFT has stagnated not only due to overvaluation, but also due to street perception that the company will struggle to grow in the years ahead (the fact that the company has grown earnings year in and year out seems to be irrelevant) CMG, unlike MSFT, has credibility with Wall Street, something that is just as important as business fundamentals and valuation.there will be a point when it will be prudent to exit CMG once again, but we do not think now is that time.
    Oct 7 05:27 PM | 1 Like Like |Link to Comment
  • Buy Chipotle As The Company Expands And Resists Recession Fears [View article]
    while bio-reference labs, at least from our cursory look through, is indeed growing well, the stock has underperformed chipotle as follows (data from google finance)

    5 years: CMG up 475%, BRLI up 71%
    1 year: CMG 67%, BRLI down 9.38%
    YTD: CMG up 39.52%, BRLI down 15.46%
    6 months: CMG up 8%, BRLI down 17.73%
    Oct 7 02:40 PM | 1 Like Like |Link to Comment
  • First Solar: A Contrarian Long-Term Play [View article]
    we admit that this is a passionate defense of FSLR, but it is only because we feel that the market is dramatically understating the potential of the company
    Oct 6 08:21 PM | Likes Like |Link to Comment
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