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Sammy Pollack

 
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  • Visa And MasterCard Should Issue Debt To Fund Massive Stock Buybacks
    Yesterday, 2:56 PM AXP, COF, V 7 Comments

    Summary

    • Both V & MA currently have very little debt on their balance sheets.
    • The stability of V and MA earnings make them good candidates for increased levels of leverage.
    • Shareholders are currently missing out on potential benefits of leverage.
  • Why I Don't Like Casablanca's Plan For Cliffs And What I Would Do Instead
    Yesterday, 4:44 AM CLF 20 Comments

    Summary

    • I believe Casablanca's plan for CLF is flawed.
    • What I would do instead.
    • I am not bullish on CLF right now.
  • Eastman Chemical: Time To Buy
    Tue, Aug. 26 DD, EMN 5 Comments

    Summary

    • EMN shares have pulled back after the company reported a weaker than anticipated second quarter.
    • EMN is trading at a reasonable valuation based on a number of metrics.
    • EMN's recently announced a $1 billion stock buyback which should help support the stock.
  • Vodafone: A Buy Based On Merger And Acquisition Speculation
    Mon, Aug. 25 CHL, T, DTV 7 Comments

    Summary

    • Since selling its stake in Verizon Wireless VOD has become a rumored takeover target.
    • AT&T, China Mobile, and Softbank are all potential bidders.
    • VOD is currently the most valuable telecom takeover and is likely to receive at least one bid.
  • Talisman Energy: My Top Stock Pick Right Now
    Sun, Aug. 24 TLM 16 Comments

    Summary

    • TLM is the process of restructuring by selling non core assets.
    • Carl Icahn has amassed a large position in TLM and has appointed two board directors.
    • Repsol SA has approached TLM about a potential deal.
    • TLM recently experienced significant bullish options activity.
    • TLM sets up as a great risk reward trade.
  • News Corporation: A Strong Buy
    Wed, Aug. 20 NWS, NWSA Comment!

    Summary

    • News Corp. is a value play, based on sum-of-the-parts valuation.
    • News Corp.'s recently acquired Storyful could become a very valuable media property.
    • News Corp.'s strong balance sheet gives the company flexibility, and could allow the company to go private.
  • SeaWorld: Buy The Dip
    Mon, Aug. 18 FUN, SIX, SEAS 16 Comments

    Summary

    • SeaWorld shares have fallen sharply after the company reported disappointing second-quarter results.
    • Pressure from the "Blackfish" documentary is likely to be abate over time.
    • SeaWorld is a buy based on its valuation, dividend yield, and recently announced share repurchase.
  • Update: Dollar General Tops Dollar Tree Bid For Family Dollar
    Mon, Aug. 18 DLTR, FDO, DG 2 Comments

    Summary

    • DG has announced a bid for FDO topping DLTR's previous bid.
    • In a recent article I suggested buying DG.
    • Investors who bought DG should consider selling to lock in gains.
  • Paulson Buys DirecTV As Buffett Sells: Why I'm Bullish
    Sun, Aug. 17 T, DTV 6 Comments

    Summary

    • Paulson & Co has taken a large stake in DirecTV while Berkshire has reduced its stake.
    • AT&T has agreed to buy DirecTV for $95 per share but regulatory approval remains uncertain.
    • I believe Paulson & Co's move to buy is more important than Berkshire's sale.
  • Update: Caesars Reaches Deal To Reduce Debt
    Wed, Aug. 13 CZR Comment!

    Summary

    • Caesars has reached a deal to reduce its debt by $548 million.
    • Caesars' shares have fallen sharply since I outlined my bearish view.
    • I remain bearish on Caesars and believe the company is likely to issue additional equity in the future.
  • Apollo Global Management: The Private Equity Play On Rising Rates
    Mon, Aug. 11 BX, CG, KKR 6 Comments

    Summary

    • Apollo has more exposure to credit funds than peers such as Blackstone, KKR, and Carlyle.
    • Apollo's credit funds are well-positioned for a rising rate environment.
    • Apollo is currently in the process of raising a new fund to bet against junk bonds.
  • Time Warner Should Spinoff HBO
    Sun, Aug. 10 AMZN, FOXA, NFLX 7 Comments

    Summary

    • TWX shares have fallen after Rupert Murdoch dropped his bid to acquire the company and TWX needs to do something to boost returns for shareholders.
    • HBO as a standalone company would benefit from the ability to by pass cable companies and sell directly to consumers.
    • HBO would be a potential acquisition for a number of companies and I believe a HBO/Netflix deal would make sense.
    • Spinning off HBO would create significant value for TWX shareholders.
  • MGM Resorts: Why The Odds Are Against This Casino
    Thu, Aug. 7 MGM 15 Comments

    Summary

    • MGM shares are up sharply over the past year and have outperformed rivals Las Vegas Sands, Wynn, and Caesars.
    • MGM carries a significant debt load that could be problematic in the future.
    • Investors should consider casino companies with better balance sheets.
  • Update: Sprint Drops T-Mobile Bid
    Wed, Aug. 6 DISH, TMUS, S 15 Comments

    Summary

    • Sprint shares are trading sharply lower on news that the company has dropped its bid for T-Mobile.
    • Sprint shares are now down sharply from my previous short recommendation which was based in part on skepticism towards the T-Mobile deal.
    • Traders who have been short Sprint should look to lock in profits.
  • Time To Take Profits On Bank Of Ireland
    Mon, Aug. 4 BCS, DB, HSBC 19 Comments

    Summary

    • Bank of Ireland shares have rallied significantly since my previous mention.
    • Wilbur Ross recently sold his stake.
    • Other European banks are trading at more attractive valuations.
  • 3 Stocks To Consider As Equities Pull Back
    Mon, Aug. 4 FB, HAL, YHOO 1 Comment

    Summary

    • Stock indices across the globe have come under increased selling pressure for a number of reasons.
    • 2014 has been a year of individual stock picking and I expect that to continue.
    • Facebook, Halliburton, and Yahoo are buys on any decline.
  • B/E Aerospace: Buy The Dip
    Fri, Aug. 1 BEAV 2 Comments

    Summary

    • B/E Aerospace has retraced nearly all gains following the announcement that the company will split into two companies.
    • B/E Aerospace continues to report strong results.
    • The upcoming company split is a catalyst that should drive shares higher.
  • Tiffany & Co: Why I'm Not A Buyer And What I Would Buy Instead
    Tue, Jul. 29 COH, KORS, RL Comment!

    Summary

    • TIF shares are up sharply since my previous bullish recommendation.
    • TIF is trading at a high valuation relative to historic norms.
    • Other luxury retailers are trading at more reasonable valuations.
  • Update: Dollar Tree To Buy Family Dollar
    Mon, Jul. 28 DG, DLTR, FDO 1 Comment

    Summary

    • Dollar Tree has agreed to acquire Family Dollar for $8.5 billion.
    • Family Dollar buyout was anticipated my previous article.
    • Investors should consider buying Dollar General.
  • Update: KKR Reports Second Quarter Earnings
    Mon, Jul. 28 KKR Comment!

    Summary

    • KKR reported a strong quarter but did not blow away estimates.
    • I remain bullish on KKR.
    • Repositioning my previous trade.
  • Why I Believe An Alibaba Deal To Buy Yahoo Is Becoming More Likely
    Thu, Jul. 24 BABA, YHOO 41 Comments

    Summary

    • YHOO shares moved higher following a recent article which suggested that Alibaba or SoftBank should acquire YHOO.
    • YHOO's recent announcement that it will be selling less of its Alibaba stake is an indication that a deal is becoming more likely.
    • YHOO's weak earnings report and lack of long-term growth strategy make it an easy takeover target.
    • YHOO's weak stock price means that Alibaba could offer a significant premium over the current price to close a deal.
  • Update: International Gaming Technology Receives A Bid
    Tue, Jul. 22 IGT 1 Comment

    Summary

    • IGT received a bid from GTECH.
    • IGT is currently trading below the deal price.
    • I believe another bidder is unlikely.
  • DuPont: Time To Buy
    Tue, Jul. 22 DD 26 Comments

    Summary

    • DuPont shares have moved lower after the company lowered its second-quarter earnings guidance.
    • DuPont has been engaged in active discussions with activist investor Nelson Peltz.
    • DuPont is trading at a reasonable valuation.
    • DuPont recently announced a $5 billion buyback plan.
  • KKR Set To Report Earnings: Why I'm Bullish
    Mon, Jul. 21 BX, CG, ENI 7 Comments

    Summary

    • Blackstone and Goldman Sachs recently reported strong quarters for their private equity segments.
    • KKR is more exposed to private equity than its peers.
    • KKR is trading at a reasonable valuation and has run rallied headed into earnings.
  • Murdoch Likely To Succeed In Effort To Buy Time Warner
    Thu, Jul. 17 FOX, TWX 7 Comments

    Summary

    • TWX shares have surged following news that the company rejected a takeover offer from Rupert Murdoch controlled FOX.
    • TWX lacks a controlling shareholder and thus FOX could go hostile in its takeover effort.
    • FOX can easily increase the stock component of its offer to make its bid more attractive.
  • Update: Goldman Sachs Q2 Earnings
    Wed, Jul. 16 JPM, MS, GS Comment!

    Summary

    • GS reported a strong second quarter.
    • GS shares have been a disappointment so far in 2014.
    • I remain bullish on GS for the second half of 2014.
  • Blackstone: A Strong Buy
    Tue, Jul. 15 BLK, BX 9 Comments

    Summary

    • Blackstone is currently trading at a cheap valuation relative to traditional asset managers and a reasonable valuation relative to other alternative asset managers.
    • Blackstone continues to grow AUM.
    • Blackstone is poised to benefit from increased regulation on banks.
    • Blackstone is a difficult trade, but a solid investment.
  • Sirius XM: A Strong Sell
    Mon, Jul. 14 P, SIRI 93 Comments

    Summary

    • Sirius XM shares have staged a major recovery since falling to 5 cents per share in 2009.
    • Sirius XM faces challenges from Pandora, Apple, Google, and Amazon.
    • Sirius XM shares are currently overvalued.
  • Why Philip Morris Is A Better Buy Than Altria
    Mon, Jul. 14 BTI, MO, PM 41 Comments

    Summary

    • Philip Morris International has historically traded at a higher valuation than Altria.
    • Altria has historically had a higher dividend yield than Philip Morris International.
    • Altria and Philip Morris are currently trading at a similar valuation and yield.
    • Investors should consider selling Altria and buying Philip Morris.
  • Why I Bought Arch Coal
    Sun, Jul. 13 ACI 39 Comments

    Summary

    • Coal stocks have continued to struggle, and skepticism towards the sector continues to grow.
    • Arch Coal has no debt maturities until 2018 and more than $1 billion in cash.
    • Coal prices could rebound over the next few years and Arch Coal is a cheap option on this possibility.
    • Hedge fund investors have been buying Arch Coal.
  • Why I Bought TRW Automotive
    Fri, Jul. 11 AXL, BWA, DLPH 1 Comment

    Summary

    • TRW shares have surged higher on news of a buyout offer from ZF Friedrichshafen.
    • TRW is trading at a cheap valuation.
    • It is possible that another bidder could emerge for TRW.
  • Exxon And Chevron Should Launch Monsanto-Like Buyback Program
    Tue, Jul. 8 MON, XOM, CVX 22 Comments

    Summary

    • Monsanto recently announced a large stock buyback program that will be financed by issuing debt.
    • Exxon and Chevron's balance sheets are under-utilized and both companies could borrow a significant amount of money at low interest rates.
    • Exxon and Chevron are trading at reasonable valuations.