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Sankrant Sanu

 
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  • Activist Hedge Fund Increases KIT Digital Stake To 5% [View article]
    The WSJ article is by the same guy who had dug up a lot of dirt on Tuzman in the past.

    http://on.wsj.com/K3gNu5

    Almost seems to be a grudge thing, or maybe he is just a short. Wish WSJ had at least as much of a public disclosure policy as SA.
    May 3 01:07 AM | Likes Like |Link to Comment
  • Apple Shares Are Undervalued By Over 50% [View article]
    Actually I sleep well with Apple. I added more at current prices. A bubble stock carries astronomical multiples based on hope of mega-growth in the future. Apple is an anti-bubble with a P/E in the low teens and demonstrated astronomical growth.

    It is hard to believe the Apple story not because the stock is a bubble but the actual results are mind-blowing. It is like buying Harry Potter when the first book came out.
    Apr 25 09:12 PM | Likes Like |Link to Comment
  • Apple Shares Are Undervalued By Over 50% [View article]
    It's funny--I see middle class people in India plomp down Rs. 25,000 ($500) for a phone without breaking a sweat. China too has an upwardly mobile class. The US market is just one piece of the pie. The smartphone will be your most used gadget, even more than the computer and people will pay for it. That said, I do expect Apple's margins to come down as the market is flooded with smartphone and tablet competitors but Apple can continue to charge a premium price for its offerings with the highest margins in the business.
    Apr 25 05:02 PM | 1 Like Like |Link to Comment
  • Is Groupon Now A Buy? Exploring Both Sides Of The Debate [View article]
    FCF of .41 per share would imply FCF of about $250 million for the entire year 2012. Seems very light given that they made $155 million in FCF in the last quarter alone.
    Apr 25 12:26 PM | Likes Like |Link to Comment
  • Is Groupon Now A Buy? Exploring Both Sides Of The Debate [View article]
    Nice article. Curious how you got the FCF estimate of $0.41 for 2012. GRPN generated $155 million of FCF in Q4 2011. Revenues are projected to increase sequentially q/q. Even if we took FCF to be maintained at Q4 2011 levels we would FCF in excess of $600 million for FY 2012 which is nearly $1/share giving a P/FCF ratio of only about 12 or so. See my analysis here. http://seekingalpha.co...

    Also, your table is using GRPN's price per share as $18.38 to calculate the ratios which greatly inflates the ratio from current prices.
    Apr 25 11:54 AM | 1 Like Like |Link to Comment
  • Apple Shares Are Undervalued By Over 50% [View article]
    I agree John, but there is a perception of AAPL being a momentum play if one has not done the homework on the numbers. That is why we went with a fundamental analysis to look past the heightened emotions, bullish or bearish.
    Apr 25 11:31 AM | 2 Likes Like |Link to Comment
  • Netflix Subscriptions Are Growing Again But Margins Are Lower In Streaming [View article]
    You are right Andrew. My focus was mainly on them sidelining the DVD business--if it continues to decline its margins would be of no consequence in the future so I did not focus on that.
    Apr 24 05:06 PM | Likes Like |Link to Comment
  • Netflix Subscriptions Are Growing Again But Margins Are Lower In Streaming [View article]
    I have not looked into Netflix's contracts with content providers. Are these variable or fixed. Is it true that every incremental customer just goes to the bottom line?
    Apr 24 05:05 PM | Likes Like |Link to Comment
  • Intuitive Surgical Growth Slowing, Shares Overvalued At Current Levels [View article]
    In the conference call they said they are not buying any more share backs. When asked why, the response was cryptic--emulating Buffet. The company is saying it feels its shares are overvalued. Love the company, but the share price will correct from here.
    Apr 20 01:34 AM | Likes Like |Link to Comment
  • Intuitive Surgical Growth Slowing, Shares Overvalued At Current Levels [View article]
    As I made clear "we are not suggesting that ISRG should trade at a PE of 14.5 anytime soon," though it did trade at that forward P/E in April-March 2009. I am looking at an estimate of 32x forwards earnings which is a PEG of 1.5 and yields a share price around $475.
    Apr 18 04:34 PM | Likes Like |Link to Comment
  • We Loved Intuitive Surgical's First-Quarter Results But Shares Are Not Cheap [View article]
    What is the fair value estimate?
    Apr 18 01:28 PM | Likes Like |Link to Comment
  • Profit From Groupon While Investors Are Negative [View article]
    Well, the consumers who bought $3billion+ of items in 2012 are finding things they like. As long as the consumers are buying the businesses will keep coming to sell. If businesses are willing to pay the margins they are for the customer based today, I do not see why they would pay less when Groupon has a larger base.

    So far the AMZN and GOOG offerings are lame in this space; time will tell if they catch on. This is a risk for Groupon.
    Apr 16 04:05 PM | Likes Like |Link to Comment
  • Profit From Groupon While Investors Are Negative [View article]
    Yes, there is the June 2 end of the lock-up period. But a positive earnings that demonstrates continuing cash generation power will help validate the model and can lead to an earnings rally. The stock is growing at 100% and trading at less than 15x 2012 free cash flow.
    Apr 16 04:00 PM | Likes Like |Link to Comment
  • Profit From Groupon While Investors Are Negative [View article]
    Yes, you are right, there was a low of $12.85 on 4/13 though it is moot given today's price action. :)
    Apr 16 03:55 PM | Likes Like |Link to Comment
  • Kit Digital 10-K Is Mostly Good News [View article]
    Hi Alex, I have no intention to admonish, only to understand. I had asked the person to lay out a clear analysis of the difference between BCOV and KITD. I am quite willing to be educated and am certainly not tied to KITD in any way. I have a long position but this can always change based on data.

    So far, based on the data, I like what I see. The company is still in rapid growth phase and is integrating acquisitions. I am more concerned about top-line than bottom line at this point since there is nothing in the fundamental structure of the business that would not translate the top line to a decent 15-20% net margin over time, comparable to similar technology companies. I will post a detailed valuation model when I get some time to write it up.

    Yes, concerns about Tuzman and the number of moving parts is exactly the reason for the low valuations. I share some these concerns but I believe they are baked into the current price and there is more upside than downside at current prices. I would be happy to have someone point out what I am missing and why the company has more room to go down than up.
    Apr 5 02:39 AM | Likes Like |Link to Comment
COMMENTS STATS
64 Comments
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