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Jacob Steinberg  

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  • Should SodaStream Have The Same Valuation As Coca-Cola? [View article]
    "Perhaps what you are missing is that investors like KO because they know it won't blow up on them. It is a safety stock. SODA is speculative."

    The market tends to value growth stories higher than safe plays. For example, companies like Exxon, Microsoft, Ford and Wal-Mart are given single digit P/Es by the market (excluding cash) whereas aggressive growth stories like Amazon, Tesla and Twitter are given P/Es as high as hundreds. Only in the case of SodaStream vs. Coca-Cola does the market value safety over growth, everywhere else, we see the opposite.
    May 20, 2014. 11:40 AM | Likes Like |Link to Comment
  • WWE Gets A Reality Check, Still Not Cheap [View article]
    They have been promoting "international expansion" ever since the company became public a decade ago and we've yet to see any benefits of such expansion. WWE's international expansion has been on life-support for more than 5-6 years now and the management continues to promote it as if it's a new idea every year and many investors still buy this. Apart from a few European countries, WWE fails to generate any meaningful revenues outside of North America even though it attempted to generate revenues in these markets several times in the last decade with failure each time. Sometimes the company gains viewers in markets like India but those markets won't really spend much money on WWE products.

    A few years ago, WWE conducted a large international tour where many big cities around the world were visited for different shows but they don't even do these large tours anymore. If they were profitable, they would do these far more often. Now they might go to some European city once in a while but you won't see them touring the continent like they used to because it proved to be unprofitable for the company.

    WWE would be reasonably valued at around 15-20 times its future cash flow, which may be around $9-10 range. Even at that range, it would not be "cheap" it would be just fairly valued.
    May 20, 2014. 08:00 AM | 1 Like Like |Link to Comment
  • Should SodaStream Have The Same Valuation As Coca-Cola? [View article]
    You are confusing market cap with valuation. Two companies having similar valuation in relation to their fundamentals is completely different than two companies having the same market cap. If SODA did all the things you list above, its market cap would be 20-30 times what it is today. In your case, all companies would have the same P/E regardless of what their growth rate is.
    May 20, 2014. 07:57 AM | 3 Likes Like |Link to Comment
  • SodaStream slips with Coca-Cola carving up a bigger piece of Keurig [View news story]
    SODA looks for any excuse to plunge. Someone at Coca Cola sneezes and SODA plunges by 5%.
    May 13, 2014. 12:03 PM | 2 Likes Like |Link to Comment
  • Yelp: Just Getting Started [View article]
    "Perhaps, but doesn't the fact that they're powerful enough to cause this sort of uproar speak volumes about how ubiquitous the platform is becoming?

    I hesitate to compare them to Microsoft or Google, but both of those disruptors attracted their fair share of criticism on their way to becoming mature businesses."

    Yes but both Microsoft and Google made loads of money as they were on their way to becoming mature businesses while Yelp posts losses quarter after quarter, year after year. If Yelp has that much disruption potential, it is even more shameful that the company has never been able to monetize it in its history.
    May 11, 2014. 03:22 PM | Likes Like |Link to Comment
  • Yelp: Just Getting Started [View article]
    There is really no value in Yelp. Expanding into international markets means next to nothing when you consider the fact that international markets generate 9% of the revenue-per-click the American markets generate for Yelp (in other words 11 international viewers generate as much cash as 1 american viewer for Yelp). Every quarter, Yelp grows its sales by 50-60% by growing its expenses by that much. This is not sustainable in the long term, not to mention the never ending dilution. Yelp will never earn enough money to justify today's valuation, let alone any future appreciation. No wonder insiders drop this stock like a hot potato as soon as they are awarded some shares, even the CEO doesn't want to hold any shares of this company, which tells me that there is no takeover in the horizon.
    May 8, 2014. 07:14 PM | 4 Likes Like |Link to Comment
  • Don't Yelp For Joy Just Yet [View article]
    "Yelp is so much further ahead in reviews than Google that they have no possible chance in catching up."

    That's simply your personal opinion and there is absolutely no evidence to support such claim.
    May 2, 2014. 03:37 PM | 3 Likes Like |Link to Comment
  • Yelp Is Headed Towards Another Year Without A Profit [View article]
    Seasonality only matters for certain industries such as consumer electronics. Do people wait for holiday season to go to a restaurant or visit a dentist? Most of the advertisement in Yelp comes from businesses that don't see any seasonality.
    May 2, 2014. 03:27 PM | Likes Like |Link to Comment
  • Yelp Is Headed Towards Another Year Without A Profit [View article]
    Yeah sorry, it should have said "overvalued"
    May 2, 2014. 03:25 PM | Likes Like |Link to Comment
  • Yelp Is Headed Towards Another Year Without A Profit [View article]
    The activity is almost criminal. The stock gets pumped up with empty promises, then executives cash-in their options with huge profits, and the same thing gets repeated every single quarter. Yelp spends 80 cents to generate $1 in revenues and this is not sustainable when you consider all the operating costs apart from sales.
    May 1, 2014. 12:57 PM | Likes Like |Link to Comment
  • Yelp Is Headed Towards Another Year Without A Profit [View article]
    I am not short, it's too risky to short a bubble.
    May 1, 2014. 11:18 AM | Likes Like |Link to Comment
  • World Wresting Entertainment dives after online subscriber tally disappoints [View news story]
    A lot of people were talking about 1 to 2 million subscribers but it turns out they will not achieve this anytime soon. The company's current stock price easily prices in 2 million subscribers.
    Apr 8, 2014. 02:08 AM | Likes Like |Link to Comment
  • What Seeking Alpha Is Doing To Prevent Paid Stock Promotion [View article]
    Since a great majority of stocks that are vulnerable to manipulation are micro-caps and small-caps, I am all for creating two tiered contributorships. The first level of contributors would only be allowed to post about overall market and large cap companies that are nearly impossible to manipulate and the second level of contributors would be allowed to write about small and micro caps. Of course one contributor would move from first tier to second tier by proving himself/herself over time. This would reduce the pumper/dumpers big time because most pumper/dumpers won't have the patience to publish a bunch of large cap company articles until they gain access to small cap company articles and they would have given up. Since it's nearly impossible for us to be able to manipulate stocks like Boeing, Ford, Apple, it may be more "harmless" to allow anyone to write about them.
    Mar 28, 2014. 11:22 AM | 3 Likes Like |Link to Comment
  • Is It Time To Buy Nike? [View article]
    I was referring to the whole package of earnings and guidance by "earnings report." Sorry for not being clear enough.
    Mar 26, 2014. 12:02 PM | Likes Like |Link to Comment
  • General Motors: The Drama Continues [View article]
    I meant the "new GM."
    Mar 18, 2014. 06:53 PM | Likes Like |Link to Comment