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  • Cisco Needs To Find Its Niche And Master That Segment
    Today, 1:25 PM CSCO 3 Comments

    Summary

    • The less than impressive earnings announcement caused the stock to take a dip in the last month, which broke the upward momentum the stock had gained since March.
    • The major segments of the company continue to show decline and Cisco will have to take solid steps to stop this decline.
    • Security and wireless segments can make up for some of the losses from other segments. However, these two segments are small and cannot stop the overall loss to Cisco.
    • Restructuring is a sensible step in the current market conditions and layoffs in the under-performing segments should bring in better results.
  • SolarCity Will Continue To Grow
    Today, 12:01 PM SCTY 3 Comments

    Summary

    • The stock has gained about 36% since we last wrote about the company and predicted strong growth opportunities for SolarCity.
    • The company has recorded some impressive revenue growth numbers over the last quarter.
    • New strategy to offer loans for ownership of systems might affect the sales in the short-term, but the medium-long term sales will be stable.
    • The solar energy market is still in the early stages and there is massive potential for the companies in this sector to grow.
  • Is Valero Energy A Good Investment?
    Yesterday, 12:37 PM CST, EPD, PXD 7 Comments

    Summary

    • The growing demand of liquids in the U.S will support the growth for Valero over the next few quarters.
    • Ethanol business has been able to report strong growth numbers due to a decrease in corn prices and favorable ethanol prices.
    • EIA sees further growth in liquids demand and HGL, which will allow the refiners to continue growth over the next few quarters.
  • Update: Questcor Shareholders Are The Net Gainers Of Acquisition Deal
    Yesterday, 7:56 AM MNK, QCOR 9 Comments

    Summary

    • Mallinckrodt has completed the acquisition of Questcor Pharmaceuticals.
    • As we expected, the deal went through without any troubles as the deal was beneficial for both sets of shareholders.
    • It has further proved our point of view that the Questcor shareholders will be the major gainers from this deal.
  • Update: 3D Systems' 2 Acquisitions Will Expand Its Footprint In Aerospace
    Yesterday, 7:16 AM DDD 3 Comments

    Summary

    • 3D Systems announced the acquisition of two of its sister companies, APP and APM.
    • The acquisitions are in line with our expectations and the company's strategy of complementing organic growth with acquisitions.
    • Our stance has been reaffirmed and we believe the company will continue to grow through expansions as well as organically.
  • What Will Be The Impact Of Consolidation On KMP Unitholders?
    Mon, Aug. 18 KMI, WFC, KMP 75 Comments

    Summary

    • The transaction will result in a substantial tax bill for KMP unitholders, depending on the purchase date of units.
    • The tax bill might even result in a loss for some KMP unitholders instead of a premium offered by KMI.
    • Some KMP unitholders might try to sell their positions now and add KMI shares to their portfolios as tax event is inevitable.
  • Frontier Communications Is Well-Positioned To Grow
    Mon, Aug. 18 T, FTR Comment!

    Summary

    • With shares rising about 39% in the last six months, Frontier has been one of the best performers in the sector.
    • The completion of AT&T's Connecticut assets will result in a considerable increase in the customer base of the company and help it tackle rising churn rate.
    • Frontier's strategy to focus on high-growth high-margin areas will result in sustainable long-term growth for the company.
  • Zynga Is A Good Speculative Bet
    Mon, Aug. 18 FB, ZNGA 10 Comments

    Summary

    • The steep fall in the stock price over the last few months has made Zynga an attractive speculative bet.
    • The company has been unable to create the network effect that Facebook provided it, which has also resulted in lower bookings.
    • Zynga's entry in the mobile gaming segment was late, but it should still result in growth for the company, as the mobile space remains attractive.
  • Long-Term Growth Prospects Of SandRidge Remain Intact
    Fri, Aug. 15 SD 11 Comments

    Summary

    • The shortfall in production during the second quarter has created some doubts in investors' minds but this was mainly due to weather conditions and out of company's control.
    • The company has been able to decrease its per well costs, which should allow it to grow its margins and enhance its cash position.
    • Falling costs will also allow the company to depend less on debt and fund its capital requirements through internally generated funds.
  • Qualcomm: Too Much Focus On The Chinese Situation Might Create A Buying Opportunity
    Fri, Aug. 15 QCOM 8 Comments

    Summary

    • Investigation in China has impacted the stock price as these investigations have impacted the licensing revenue of the company.
    • Automotive market can play an important role in the future growth of chip manufacturers as the automakers are trying to differentiate their products by offering unique technology.
    • WiPower will be another growth driver for Qualcomm as the technology will solve a key issue for mobile devices.
  • Update: Plug Power Earnings; Our Bullish Case Augmented
    Fri, Aug. 15 PLUG 16 Comments

    Summary

    • The company reported impressive second quarter results yesterday, which has surprised the market and the stock has gone up.
    • Our bullish case for the stock has been augmented by the strong growth in demand.
    • We maintain that Plug Power remains an attractive investment as the fuel cell sector will continue to grow at a rapid pace.
  • Advanced Micro Devices Might Reward Patient Investors
    Thu, Aug. 14 MSFT, AMD 60 Comments

    Summary

    • The growing sales of gaming consoles will result in an increase in royalties for the company and enhance its revenues.
    • The second half of the year will further enhance revenues as the sales of gaming consoles rise during the holiday period.
    • AMD's new server chip might change the fortunes of the segment as the company experiments with the mobile technology in server chips.
  • Enterprise Products Partners Remains A Solid Long-Term Pick
    Thu, Aug. 14 EPD 4 Comments

    Summary

    • The recent fall in the unit price will be temporary as the long-term growth prospects of the partnership remain intact.
    • Global markets will play a key role in the future growth of the partnership as the demand for condensate and petrochemicals remains strong in Asia and Latin America.
    • Agreements like Arkema show that the partnership is making the right moves to exploit the growth opportunity in the global markets.
  • Lindbergh Project Will Be A Major Growth Driver For Pengrowth
    Thu, Aug. 14 EEP, PGH 7 Comments

    Summary

    • The fall in the stock price since the start of July has reversed the gains recorded during the previous three months.
    • Lindbergh will have the capacity to add 50,000 barrels per day within the next five years and substantially increase the production volumes of the company.
    • Reserve update at the Lindbergh project has increased the value of the project from $1 billion to $2.2 billion.
  • Seadrill: Recent Contract Wins For Newbuilds Show That The Fears About Company Are Unfounded
    Thu, Aug. 14 C, XOM, SDRL 16 Comments

    Summary

    • The contract wins over the last two months show that the demand for ultra-deepwater equipment remains strong.
    • The day rate for these contracts is still close to the upper limit existing in the market indicating that the high-specification rigs will continue to fetch attractive rates.
    • Major oil and gas companies continue to direct about 50% of the CapEx to offshore developments, which means that offshore sector might not be impacted by CapEx cuts.
  • EZ Pass, Enterprise Server Business Will Be Key For BlackBerry's Future
    Wed, Aug. 13 BBRY 44 Comments

    Summary

    • The success of EZ Pass is an encouraging sign for the company as the enterprise segment remains important for BlackBerry.
    • Offer of cloud services will play a role in attracting small and medium enterprises as it might result in considerable cost savings for these businesses.
    • Enterprise services over cloud and the promotional pricing for BlackBerry device holders might result in increased sales of BlackBerry devices.
  • What Will Drive Future Growth For General Electric?
    Wed, Aug. 13 GE 22 Comments

    Summary

    • The power and aviation segments will be key growth drivers for the company over the next decade.
    • African region will be a massive market for GE and revenues from this region will show strong growth over the next few years.
    • Last five years were about damage control and recovery, we believe the next five years will be all about growth.
  • What Will Linn Energy Gain From The Most Recent Asset Purchase?
    Wed, Aug. 13 DVN, LNCO, PXD 6 Comments

    Summary

    • The addition of Pioneer's assets will enhance the natural gas production yield of the partnership.
    • Mature assets will allow the partnership to have stable revenues and production levels as these assets have low decline rate.
    • The decision to sell the undeveloped assets to fund the acquisition of mature assets will result in considerable production gains for Linn Energy massive capital spending.
  • Kodiak-Whiting Merger Will Be Hugely Beneficial For The Shareholders
    Tue, Aug. 12 WLL, KOG 16 Comments

    Summary

    • The merger will create a company with one of the best assets portfolios in the region.
    • Liquid heavy nature of the asset profile will allow the combined company to have a larger impact and better security against the commodity prices.
    • The mode of the transaction shows the belief of Kodiak's management in the success of the acquisition.
  • Transocean Is Well-Positioned To Grow
    Tue, Aug. 12 ESV, RIGP, SDRL 3 Comments

    Summary

    • The shakeup in the assets mix will allow the company to exploit the high-margin ultra-deepwater segment of the sector.
    • Transocean's strong order backlog will ensure the short-term profitability as the company tries to move towards the high-growth area.
    • The decision to divest the low-margin assets have resulted in considerable costs savings for Transocean and enhanced the profitability of the company.
    • Formation of the master limited partnership will offer Transocean some financial flexibility to fund its newbuilds program.
  • Update: Kinder Morgan Acquisition; Combined Entity Will Be A Solid Investment
    Mon, Aug. 11 EPB, KMP, KMR 18 Comments

    Summary

    • Kinder Morgan announced on August 10 that the company will buy all the outstanding common units of its limited partnerships and Kinder Morgan Management.
    • The transaction has enhanced our optimism and we believe the combined entity will be a better investment.
    • We maintain that Kinder Morgan will be a solid long-term investment for both growth and income investors.
  • Is McDermott A Good Pick?
    Sun, Aug. 10 SDRL, MDR 1 Comment

    Summary

    • The trend in the stock price over the last few months have made McDermott an attractive investment.
    • The company might have to face further troubles in the short term as the CapEx from major oil companies remains low and the political conditions in Middle East remain bad.
    • In the long term, we see considerable growth opportunities for the off-shore segment as well as oil and gas sector.
  • GT Advanced Technologies: Ignore The Short-Term Fluctuations - Focus On The Long-Term
    Sun, Aug. 10 GTAT 119 Comments

    Summary

    • The full year outlook has played a key role in reversing the trend in the stock price over the last few days.
    • Sapphire remains the largest contributor towards revenues for the company but GTAT is not a one trick pony.
    • Hyperion and Merlin will be equally important for the company to achieve its 2016 guidance of $1.50 in EPS.
  • Update: Amarin Earnings - Company Making Progress
    Sun, Aug. 10 AMRN 5 Comments

    Summary

    • Amarin announced earnings on August 7 and the company has made improvement in a number of areas.
    • The progress in Vascepa sales and prescriptions have altered our opinion about the stock.
    • We believe Amarin is currently an attractive speculative play.
  • Update: Seadrill; Another Win For Newbuild Solidifies Our Belief In The Company
    Fri, Aug. 8 XOM, SDRL 56 Comments

    Summary

    • The company announced a contract win for its newbuild West Saturn, which will be delivered in September this year.
    • The total revenue potential of the contract is $497 million and the contract is for two year with the option for a third year.
    • The news confirms our belief that the company will be able to win contracts for its newbuilds despite fears about the sector.
  • Update: Earnings: Linn Energy Is On Track To Move Higher
    Fri, Aug. 8 LINE, LNCO 9 Comments

    Summary

    • The company announced its earnings yesterday, and recorded strong growth in sales (98%) and average daily production (2.4%).
    • The distribution coverage and the growth in sales have confirmed our opinion that the company will be able to grow its cash flows.
    • Our belief has also been confirmed regarding the shift in its assets portfolio, as the addition of mature assets will bring more stability to cash flows and revenues.
  • What Is Happening With DryShips?
    Thu, Aug. 7 ORIG, DRYS 6 Comments

    Summary

    • The core business of the company continues to show weakness and the prospects of drybulk business still remain unclear.
    • The financing costs continue to increase as the company borrows to fund newbuilds program.
    • Margins are getting better as the off-shore assets continue to win contracts at attractive rates and cover the financing costs.
  • Is Atlantic Power A Good Investment?
    Thu, Aug. 7 AT 9 Comments

    Summary

    • The fears about the debt of the company and the cash flow situation has caused the stock to lose substantial value over the last year.
    • Fee based revenue should ensure stability in cash flows and the future dividends are likely to remain unhurt.
    • The current price of the stock makes it an attractive investment for an income investor with a yield of over 10% and solid growth prospects.
  • Increasing Benefit To Retailers Will Allow Plug Power To Grow
    Thu, Aug. 7 WMT, PLUG 18 Comments

    Summary

    • The contract win with Wal-Mart is a hugely positive news for the company and it is a vote of confidence for the technology.
    • Retailers achieve considerable tangible and intangible benefits from the use of fuel cell powered forklifts compared to traditional battery powered vehicles.
    • The short interest is at the highest point in the past two months and some positive news on 14th of this month might cause a short-squeeze.
  • FuelCell Energy Remains One Of The Best Picks In The Sector
    Wed, Aug. 6 BLDP, NRG, PLUG 12 Comments

    Summary

    • FuelCell Energy's stock performance has been better in the sector as the market has come under pressure over the last few days.
    • The agreement with NRG will allow the company to meet its short-term obligations and fund its new projects.
    • Research agreement with the German partners will allow the company to come up with better products.
  • Freeport-McMoRan Is Well-Positioned To Grow
    Wed, Aug. 6 FCX 4 Comments

    Summary

    • The agreement with the Indonesian government might not be ideal in the short-term but it will prove to be a good deal in the medium-long term.
    • Copper prices are currently in favor of copper producers due to the expected demand from China and the trend in prices will likely remain strong.
    • Decision to build a smelter in Indonesia will result in increased CapEx for the company.
  • Chesapeake Remains A Solid Long-Term Investment
    Wed, Aug. 6 CHK 1 Comment

    Summary

    • The seasonal trend in natural gas prices have caused the prices to fall and Chesapeake have been affected due to gas heavy portfolio.
    • Swap and futures contracts have shielded the company against the falling commodity prices to some extent.
    • Oil prices will stabilize and even if the prices fall; the company is protected against the falling prices through the futures contracts.