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Jacob Steinberg

 
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  • Do Analysts Know How To Value Ford And GM?
    Tue, May. 27 F, GM 42 Comments

    Summary

    • Analysts can't seem to agree on how to value Ford and GM.
    • Even though the current valuations of both companies look very cheap, they are in line with historical averages.
    • This doesn't mean these companies should be avoided; there is still room for both companies to improve.
  • How Much Hope Is Built Into Intel's Stock Price?
    Tue, May. 27 INTC 9 Comments

    Summary

    • Intel's lack of growth has been well understood and punished by the investors.
    • The company's margins have been trending downwards for a while, and the revenues have been flattish at best.
    • The company is trading for a cheap multiple in terms of net earnings and cash flow.
    • Investors don't expect much from this company, and any surprise to the upside might be rewarded handsomely.
  • Will Yelp Ever Justify Its Ridiculous Valuation?
    Fri, May. 23 YELP 89 Comments

    Summary

    • Just because a stock fell sharply recently does not mean it is cheap.
    • Yelp's business model of spending $50 million in marketing to generate $45 million in revenues is not sustainable.
    • Even if all analyst goals are met, we are still looking at a ridiculous forward valuation.
    • Revenue-wise the growth opportunities are limited for Yelp outside of the US.
  • Should SodaStream Have The Same Valuation As Coca-Cola?
    Tue, May. 20 SODA 28 Comments

    Summary

    • Coca-Cola is a mature company, while SodaStream is a growth company.
    • The current valuation of two companies implies that Coca Cola's growth will be comparable to SodaStream's.
    • It is unfair that SodaStream gets valued like a mature company when it's still growing.
  • WWE Gets A Reality Check, Still Not Cheap
    Tue, May. 20 WWE 8 Comments

    Summary

    • WWE's bloated share price was based on a lot of big ifs.
    • It turns out that those "ifs" will not be happening anytime soon.
    • Even after the crash, it's hard to call the shares cheap.
  • Johnson & Johnson: Now What?
    Wed, May. 14 JNJ 42 Comments

    Summary

    • JNJ continues to reward investors with price appreciation and dividend raises.
    • The company still looks cheap compared to historical standards despite a recent rally.
    • The pharmaceutical sector of the company will continue to account for most of the growth as we move forward.
    • As the margins are back to where they were prior to the recession, things are looking up and the analysts covering the company have high expectations.
  • Despite The Run Up, Wells Fargo Is Still Cheap
    Mon, May. 12 WFC 15 Comments

    Summary

    • Wells Fargo receives a lot of love from investors both inside and outside of Wall Street.
    • This love is not unjustified at all, the bank has a clear and simple business plan.
    • The company has a proven track record, cheap valuation and great potential.
    • Wells Fargo might be one of the best investment opportunities in the market today.
  • Can Rite Aid's Run Up Continue?
    Sun, May. 11 RAD 26 Comments

    Summary

    • Rite Aid has been on a bumpy road in the last decade.
    • From a valuation standpoint, the company looks fairly valued after a strong rally of a year.
    • Things have been improving from an operations standpoint and the company might warrant a better valuation now.
  • Tesla: Strong Quarter, But Investors Feel Like They Need More Details
    Thu, May. 8 TSLA 43 Comments

    Summary

    • Tesla posted pretty strong results for the last quarter.
    • The costs are going higher as the company ramps up production.
    • Many investors are left confused about giga-factory details.
    • Tesla will have to work hard and keep delivering strong results to keep its valuation.
  • Does Micron Technology Make Sense At The Current Price?
    Tue, May. 6 MU 19 Comments

    Summary

    • Micron Technology has been receiving a lot of attention in the market recently.
    • The company's share price seems to be supported by strong fundamentals.
    • Investors are paying very little for the company's cash flow compared to historical standards.
    • Micron could increase its margins helped by price hikes and new synergies (through the Elpida acquisition) and provide a lot of value to shareholders.
  • Does Alcoa's Current Valuation Make Sense?
    Tue, May. 6 AA 8 Comments

    Summary

    • Alcoa's stock price has been appreciating rather nicely in the recent weeks.
    • Unfortunately this doesn't come with a significant improvement in the company's fundamentals.
    • Even if it meets all the analyst targets, it still doesn't appear cheap at the current price.
  • Yelp Is Headed Towards Another Year Without A Profit
    Thu, May. 1 YELP 20 Comments

    Summary

    • Yelp's quarterly results beat the analyst estimates by a little bit but the results were nothing to write home about.
    • The company's growth rate continues to slow down, dilution continues to increase and monetization of content is very poor.
    • The company's future guidance calls for further slow down in growth, more dilution and lack of profitability.
    • At the current valuation, the company is still too expensive and it is mostly a speculation.
  • How Does Intel's Valuation Look Past Earnings Report?
    Mon, Apr. 21 INTC 7 Comments

    Summary

    • Intel's revenue and profit growth has been relatively flattish in the recent years.
    • Investors are currently discounting the company based on its historical fundamentals.
    • Intel is trading for a historically low price to cash flow and price to book value ratio than what we are used to seeing.
    • If you believe in the turnaround story, this may be a good time to buy.
  • Is This Time To Give Goldman Sachs A Chance?
    Mon, Apr. 14 GS 4 Comments

    Summary

    • Investors seem to be losing faith with Goldman Sachs in the last year.
    • Compared to its historical revenue and earnings multiples, the company looks slightly cheap.
    • Compared to its book-value multiples where we see a more reliable valuation pattern, the company looks even cheaper.
    • Looking at analyst estimates for the next 3 years, the company looks exceptionally cheap but there are some uncertainties moving forward.
  • PepsiCo: Historically Cheap Due To Investor Worries
    Tue, Apr. 1 PEP 6 Comments

    Summary

    • PepsiCo seems to struggle with flat revenues and falling margins.
    • Investors are worried because the company will have to grow its earnings to be able to keep raising dividends.
    • If the company can take advantage of future opportunities and meet analyst targets, there is upside.
  • This Is How Amazon Looks Historically
    Sun, Mar. 30 AMZN 16 Comments

    Summary

    • Investors don't mind Amazon's lack of profitability as long as the company can grow its revenues rapidly.
    • Historically, the company's market cap has been about 2 times its annual revenues.
    • The company has been able to grow its cash-from-operations nicely over the years and trades for 28 times this metric.
    • There is still a lot of uncertainty regarding what metric the market will use to value this company as we move forward.
  • Is It Time To Buy Nike?
    Wed, Mar. 26 NKE 10 Comments

    Summary

    • Nike's stock price has been performing weakly in the last few weeks due to the disappointing earnings report.
    • Nike has a strong history of accomplishing high-growth and profitability simultaneously.
    • While many analysts downgraded their outlook for the company, the long-term picture still looks good.
    • While valuation is not historically cheap, it is not expensive either. The current pullback might be a chance many people have been waiting for.
  • Should You Buy Johnson & Johnson At All-Time Highs?
    Tue, Mar. 25 JNJ 16 Comments

    Summary

    • JNJ seems to put some of its past drama behind as the shares have been in a rally mode.
    • The company's margins are improving towards their historical peaks.
    • Historically speaking, JNJ's valuation is far from expensive both in terms of past earnings and future expectations.
    • Buying might not be a bad idea for long-term investors.
  • Procter & Gamble's Current Trend Needs To Change Soon
    Tue, Mar. 25 PG 5 Comments

    Summary

    • Procter & Gamble's growth is slowing and margins are struggling to keep up with historical averages.
    • While the company continues to be a dividend champion, its payout ratio is getting dangerously high.
    • The company is relying on stock buybacks to post any meaningful earnings per share growth.
    • Any meaningful future growth will have to rely on margin expansion for the time being.
  • Microsoft: Pushing Our 'Retire Young' Portfolio Higher
    Fri, Mar. 21 MSFT 9 Comments

    Summary

    • Microsoft finally broke the psychological barrier of being under $40 that's been in place since the 1990s.
    • The company's growth rate easily justifies the recent rally, which should continue.
    • Microsoft proves that a company can become a "cash cow" and be able to grow simultaneously.
    • Helped by Microsoft's recent performance, our portfolio continues to outperform the market.
  • Adding Perspective To First Solar's Strong Guidance
    Thu, Mar. 20 FSLR 39 Comments

    Summary

    • First Solar made a rare move in providing full-year guidance figures for the next 3 years and investors reacted very positively to this move..
    • Looking at the long term revenue and earnings trends, the company's growth will continue even after its backlog is depleted..
    • Even after the big spike, the company's valuation still looks attractive compared to its cash flow and book value.
    • Investors not willing to wait for a correction can sell naked puts or covered calls to make things interesting.
  • Kandi Continues To Impress Investors
    Wed, Mar. 19 KNDI 50 Comments

    Summary

    • Kandi Technologies posted impressive results in the last quarter, with accelerated growth.
    • In 2013, the fourth quarter's revenues alone are almost as high as all of 2012's.
    • The company is investing heavily for further growth.
    • If the company keeps up the growth, its forward metrics look pretty attractive.
  • Is GE Getting Pricey?
    Wed, Mar. 19 GE 29 Comments

    Summary

    • GE's revenue and earnings growth has been slowing down.
    • The company's margins have also been contracting over the last decade.
    • Depending on which metric one looks at, shares look anywhere from fairly-priced to pricey.
    • Future estimates and opportunities can make the stock attractive if the company can execute.
  • General Motors: The Drama Continues
    Tue, Mar. 18 GM 13 Comments

    Summary

    • GM issued another round of recalls involving more than 1.5 million vehicles.
    • These events can't be brushed off easily as they will have major impact on the company.
    • GM's low margins make recall events exceptionally risky for the company's profitability.
  • Will Ford's Analysts And Investors Ever Agree?
    Sat, Mar. 15 F 16 Comments

    Summary

    • Many analysts are very bullish on Ford even though investors don't always agree.
    • Ford's current valuation is in line with the company's historical valuation.
    • There may be significant upside once the European issues are fixed and Asia is at full potential.
    • The company's current cash position and forward valuation offers limited downside risk for investors.
  • Did Disney's Stock Get Ahead Of Itself?
    Fri, Mar. 14 DIS 11 Comments

    Summary

    • Disney's stock has performed greatly in recent years; many are wondering if it rallied too fast.
    • The company continues to grow its revenues and expand margins at a rapid pace.
    • As there are little to no signs of slowing growth in the near future, the company continues to be a strong investment.
  • AMD: Let's Look At The Only Thing That Matters
    Fri, Mar. 14 AMD 72 Comments

    Summary

    • Many articles talk about AMD's new products and chips with little mention to company's finances.
    • The company's financial health situation has been extremely volatile and unpredictable over the years.
    • AMD can still turnaround but the analysts don't bet on it as they see it as marginally profitable for years to come.
    • While shares are not fundamentally cheap, they are weak and any sign of a strong turnaround can send them flying.
  • Is It Finally Time To Buy Petrobras?
    Sat, Mar. 8 PBR 44 Comments

    Summary

    • Petrobras has been performing badly as the stock kept going lower without finding a bottom.
    • Fundamentally, Petrobras looks cheap compared to both its peers and historical valuation.
    • The company is cheap for a good reason; it is controlled by the Brazilian government, which doesn't really care much about investors.
    • As the political and economical situation in Brazil continues to be unstable, this stock continues to be a speculation play.
  • Wal-Mart: The Current Price Ignores Growth Opportunities
    Thu, Mar. 6 WMT 7 Comments

    Summary

    • Wal-Mart continues to grow its revenues across the board regardless of the economical environment, which proves the company's resiliency.
    • The company is seeing some margin pressures due to newly emerging competition, such as Dollar General and Dollar Tree, in the low-cost consumer sector.
    • Wal-Mart has always been fully committed to share its profits with its shareholders. The company is now sharing more money than ever with increased dividends and buybacks.
    • Wal-Mart's current price is historically low given the analyst estimates for the next 3 years and its historical valuation multiples.
  • Can McDonald's Be A Tasty Investment?
    Wed, Mar. 5 MCD 3 Comments

    Summary

    • McDonald's has been able to grow its earnings faster than it has been able to grow its revenues.
    • Margin expansion due to more efficient operations and share repurchases helped the company's earnings substantially.
    • Moving forward, if the company can execute in this improving-but-uncertain environment, investors will be rewarded handsomely.
  • Exxon Mobil: Limited Risk, Limited Upside
    Wed, Mar. 5 XOM 11 Comments
  • Verizon's Current Price Ignores Any Growth Potential
    Tue, Mar. 4 VZ 5 Comments