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  • Update: Share Repurchase Plan Should Provide Some Support To Chesapeake
    Wed, Dec. 24 CHK 3 Comments

    Summary

    • The company announced the $1 billion worth of share repurchase plan along with the closing of asset sales in Marcellus and Utica shale.
    • The asset sales are in line with my previous analysis.
    • Share repurchase plan should offer some support to the share prices.
  • Update: Datalogix Is A Nice Addition To Oracle's Portfolio
    Wed, Dec. 24 ORCL Comment!

    Summary

    • Oracle announced an agreement to buy Datalogix.
    • The deal will enhance its cloud offerings as well as its IaaS, PaaS and SaaS products.
    • The transaction is in line with our expectations, as the company has been growing this segment rapidly.
  • Update: Rite Aid Earnings Continue To Grow - Our Bull Case Stands
    Sat, Dec. 20 RAD 4 Comments

    Summary

    • The company announced its third quarter earnings.
    • As we expected, pharmacy sales registered strong growth for the company.
    • Increased full year outlook shows that the management is confident about the fourth quarter earnings growth.
  • Update: Slashing The Dividend Is A Wise Move By Penn West
    Fri, Dec. 19 PWE 15 Comments

    Summary

    • The company announced a dividend cut and a reduction in the capital budget for the next year.
    • Keeping in mind the current market condition, the dividend cut does not come as a surprise.
    • Total saving from the dividend cut and capital budget will reach about $376 million.
  • Alcatel-Lucent And Nokia Merger Would Be Good For Both Companies
    Fri, Dec. 19 ALU, NOK 10 Comments

    Summary

    • Rumors have resurfaced that Alcatel-Lucent and Nokia are in merger talks.
    • The companies have reportedly been in merger talks in the past.
    • Future growth in the key focus areas of these companies is expected to remain strong, and combined resources would position them well to exploit this growth opportunity.
  • Update: PaaS And IaaS Continue To Fuel Future Growth For Oracle
    Fri, Dec. 19 ORCL Comment!

    Summary

    • The company has announced its second quarter earnings.
    • As we expected, IaaS and PaaS revenues continue to grow at an exceptional rate.
    • Cloud bookings are also strong for the company and are expected to reach $250 million by the fourth quarter of the current fiscal year.
  • Cost Advantage Will Allow Marathon To Do Well In The Poor Market Conditions
    Fri, Dec. 19 MRO 1 Comment

    Summary

    • The company has assets in some of the highest yielding areas in the U.S.
    • Focus on low-cost methods will allow the company to remain profitable even at low crude prices.
    • Marathon's drilling technology gives it an advantage compared to its peers and the company is able to grow production at a lower cost.
  • Update: Focus On Enhancing Balance Sheet Should Help Linn Energy In The Long Run
    Fri, Dec. 19 LINE 34 Comments

    Summary

    • The partnership has announced the sale of its Granite Wash and Cleveland assets.
    • The proceeds will be used to enhance the balance sheet of the partnership.
    • As we have said in the past, the partnership remains on track with its strategy and the reduction in debt will make it an even more attractive investment.
  • Seadrill: Holding Might Be Better Than Selling At Current Price Levels
    Wed, Dec. 17 SDRL 85 Comments

    Summary

    • It will be difficult to prove intent to mislead on the part of Seadrill management in the class action lawsuits.
    • In my opinion, Seadrill should come out unscathed from these class action lawsuits.
    • John Fredriksen's decision to increase his stake in the company is another effort to send a signal to the market that there is no need to panic.
    • At current price levels, it is better to hold and wait for the things to get better than selling at a loss, in my opinion.
  • Update: Apache's Sale Of LNG Assets Should Strengthen Its Balance Sheet
    Wed, Dec. 17 APA Comment!

    Summary

    • Apache announced the sale of its LNG assets in Australia for an estimated $3.7 billion.
    • The sale is in line with the company's restructuring plans to sell non-core assets and focus on U.S. shale assets.
    • These transactions were expected as the company had announced the restructuring plan.
    • I maintain that the company should focus on strengthening its balance sheet and curtail investments in shale assets.
  • Update: Expansion In Gross Margin Shows FuelCell Energy Is On The Right Track
    Wed, Dec. 17 FCEL 4 Comments

    Summary

    • The company announced its fourth quarter and full year results.
    • FuelCell Energy reported substantial improvement in gross margin and a decrease in manufacturing costs.
    • As we expected, the company is focusing on cost reduction along with revenue growth.
  • EOG Resources Is Well-Positioned To Face The Challenges Of The Oil And Gas Market
    Tue, Dec. 16 EOG 3 Comments

    Summary

    • The company has assets in the Eagle Ford area where companies can remain profitable even if crude oil falls to $40 per barrel.
    • The sale of Canadian assets will allow the company to increase focus on the U.S. assets, which are cost efficient and have high productivity.
    • The majority of EOG's assets will continue to return 10% after tax even if crude prices fall to $40 per barrel.
  • Update: Lululemon's Margins Are Under Pressure But The Long-Term Outlook Looks Good
    Sat, Dec. 13 LULU Comment!

    Summary

    • The company announced third quarter earnings, recording impressive growth in revenues.
    • As we expected, the margins of the company are under pressure.
    • As the company expands its products portfolio, the pressure on margins should ease and revenues should show stable and consistent growth.
  • Update: Frontier Communications' Dividend Increase Signals Good Times Ahead
    Sat, Dec. 13 FTR 8 Comments

    Summary

    • The company has announced a 5% increase in its quarterly dividend.
    • I recommended Frontier Communications for the dividend portfolio on the basis of improving cash flows.
    • The increase in dividends will most likely result in giving further push to the stock price over the next few weeks.
  • Update: First Solar's Entry Into The Residential Market Will Boost Its Growth
    Fri, Dec. 12 FSLR 4 Comments

    Summary

    • The company has announced that it is entering the residential segment of the solar market.
    • We explained in our previous article that the growth in utility-scale market had become sluggish and the company might need to look for other opportunities.
    • This move should boost the revenue growth of the company as the residential segment of the market continues to grow at an impressive rate.
  • Diversifying The Revenue Base Will Help Plug Power
    Tue, Dec. 9 PLUG 29 Comments

    Summary

    • ReliOn can help Plug Power in diversifying its revenues and growing its revenue base.
    • The recent contract win is the first step by ReliOn and it will need to do a lot more to become a major part of Plug Power's overall business mix.
    • Plug Power will face some competition in the stationary power solutions segment, but I believe this segment can accommodate ReliOn as the growth will remain strong.
  • Update: This Contract Win Takes FuelCell Energy Closer To Its Target
    Sun, Dec. 7 FCEL 6 Comments

    Summary

    • The company announced a contract to install a 3.4 megawatt generator with UIL Holdings.
    • This contract takes FuelCell Energy closer to the target of 80-90 DFC systems per year.
    • As we explained, the company needed growth on the top line, along with the consolidation on the supply side, to become profitable.
  • Is This A Good Time To Buy Seadrill?
    Sat, Dec. 6 SDRL 118 Comments

    Summary

    • Repayment of debt will bring down Seadrill's debt-to-EBITDA ratio and make it more attractive.
    • The stock is trading at a discount of about 41% to the book value.
    • Seadrill will make a solid recovery as crude prices start to rebound.
    • Seadrill's ability to make strategic partnerships will allow the company to weather this storm and come out stronger.
  • Update: Ambarella's Impressive Earnings Support Our Bull Case
    Sat, Dec. 6 AMBA 8 Comments

    Summary

    • The company reported third quarter year-over-year revenue growth of 43%.
    • As we expected, the growth from GoPro and the IP security camera segment remains strong.
    • We maintain Ambarella is a solid long-term investment as the wearable cameras market is still at early stages.
  • Apache Corporation: Focus On Shale Might Not Be The Best Decision Right Now
    Tue, Dec. 2 APA 4 Comments

    Summary

    • The company has sold non-core assets in Southern Louisiana and Anadarko Basin in order to focus on shale assets.
    • OPEC's decision to maintain the current production levels will put pressure on the U.S. shale producers as the crude prices will remain low.
    • Some U.S. shale producers might not be able to breakeven at current price levels.
    • Apache Corporation should conserve its cash in order to expand its operations when the market makes a recovery.
  • National Oilwell Varco Might Benefit From Halliburton-Baker Hughes Merger
    Fri, Nov. 28 NOV 1 Comment

    Summary

    • Halliburton will have to sell considerable assets in order to meet the anti-trust regulations and NOV can pick up some assets.
    • Drill bits and drilling fluids will be a good addition to the company's portfolio if the merging entity puts up these assets for sale.
    • The acquisition of these assets will allow National Oilwell Varco to grow its customer base as well as revenues and cash flows.
  • Update: Deere & Company Sees Falling Revenues And Earnings
    Fri, Nov. 28 DE 3 Comments

    Summary

    • The company announced its fourth quarter and full year results, which showed considerable decline.
    • As we expected, the sales from the agricultural segment are falling and the trend is expected to continue in the short-medium term.
    • Investors will have to be content with the dividend as the stock price performance will be sluggish over the next few months.
  • Update: Seadrill Suspends Its Dividend Distributions
    Thu, Nov. 27 SDRL 1 Comment

    Summary

    • The company announced its third quarter earnings, which missed the analyst estimates.
    • I feared the company might cut its dividends, but it has suspended the dividend distributions in order to decrease debt.
    • Extraordinary circumstances have forced Seadrill to suspend its dividends as the company prepares for an extended period of low crude prices.
  • Weak Commodity Prices Might Take A Toll On Seadrill
    Wed, Nov. 26 SDRL 8 Comments

    Summary

    • OPEC will need to reduce production by about 1 million barrels per day in order to support the falling prices.
    • OPEC members might not be able to agree on a production cut as the falling prices have had different impacts on participating nations.
    • Seadrill has suffered heavily due to the weak commodity prices and the company might miss analyst estimates.
    • There are fears that the company might cut its dividend in the wake of low crude prices.
    • If Seadrill cuts its dividend then it will put strong downward pressure on the stock price.
  • Halliburton And Baker Hughes Will Be A Good Match
    Tue, Nov. 25 HAL, BHI 7 Comments

    Summary

    • The acquisition should give Halliburton a cost advantage due to the larger scale of operations.
    • The deal will allow Halliburton to access the research and development capabilities of Baker Hughes.
    • The combined company will be able to do well if the commodity prices remain low for an extended period of time, but it will do even better if prices rebound.
    • Halliburton should be able to get the regulatory approval as the company has announced it will sell assets capable of generating $7.5 billion in revenues.
  • Update: Gilead's Harvoni Receives Marketing Authorization In Europe
    Wed, Nov. 19 GILD 10 Comments

    Summary

    • The company announced that the European Commission has granted marketing authorization for Harvoni.
    • We expected the approval after the European Commission gave favorable opinion to the drug at the end of September.
    • This will allow Gilead to capture a segment of the market which was not in its reach before.
  • Telecom Backup Power Segment Will Drive Future Growth For Ballard Power Systems
    Tue, Nov. 18 BLDP 10 Comments

    Summary

    • The telecom backup power segment has been growing at an exceptional rate for the company.
    • The market for stationary power is expected to reach $40 billion by the end of 2022, and telecom backup power segment is expected to grow at CAGR of 4.49%.
    • Even conservative estimates show that the growth in this segment will almost triple the gross profit of the company.
  • Is Devon Energy Executing Its Strategy Efficiently?
    Tue, Nov. 18 DVN 1 Comment

    Summary

    • The company has been able to grow its production impressively due to the acquisitions.
    • Higher realized prices have resulted in impressive growth in revenues.
    • An efficient hedging strategy has allowed the company to get better prices when the overall sector is under pressure due to the falling crude prices.
    • Majority of the rise in the revenues have come from the increase production, which shows that the growth strategy has been paying off.
  • Update: This Merger Will Further Enhance The Midstream Footprint Of Enterprise Products Partners
    Fri, Nov. 14 EPD 6 Comments

    Summary

    • The partnership announced the merger agreement with the Oiltanking Partners.
    • We did not expect EPD to acquire an oil tanking business as we expected the company to focus on the expansion of pipelines and terminals business.
    • This acquisition will give EPD a different dimension and it will allow the partnership to capture another segment of the midstream market.
  • Update: I Remain Positive Despite Less Than Impressive Earnings By Plug Power
    Fri, Nov. 14 PLUG 38 Comments

    Summary

    • The company reported third quarter earnings, which fell below the market expectations.
    • I did not expect the third quarter revenues to fall below the consensus estimates.
    • Despite poor results for the third quarter, I remain positive and believe the company is positioning itself well for future growth.
  • Update: This Move Will Open New Markets For Plug Power
    Thu, Nov. 13 PLUG 28 Comments

    Summary

    • The company has announced that ReliOn will be structured as the stationary power product brand.
    • This decision will open new markets for the company and it will also open Plug Power to new competition.
    • We did not expect this move from the company.
  • Update: Another Contract Win By McDermott Shows The Demand Remains Strong
    Thu, Nov. 13 MDR Comment!

    Summary

    • McDermott International announced a contract with the Brunei Shell Petroleum Company to transport and install pipeline for the shallow water off-shore fields of Champion and Ampa.
    • The contract win shows the demand remains strong despite weak commodity prices.
    • The contract win is in line with our expectations and we believe the company will be able to weather the short-term storm in the oil and gas industry.