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Simon Monger
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I have been an active trader and investor for more than 10 years, having traded financial instruments ranging from options to futures. I tend to focus on undiscovered companies that have exceptional value on their balance sheets, but lack coverage by traditional news and media sources. I built... More
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Sumfolio.com
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  • OpenTable (OPEN) Performs as Expected
    OpenTable performed as expected, which means our suggestions from yesterday's article on Sumfolio.com may still apply.

    Here's a reprint of the article:

    OpenTable Inc. (OPEN, Free Analysis), an online network connecting reservation-taking restaurants and people who dine at those restaurants, should slightly miss revenue estimates but meet or beat earnings estimates, according to Collins Stewart. The analyst believes that the recent pullback in shares as a long-term buying opportunity and $104.00 per share price target.

    Analysts are projecting earnings of $0.30 per share on revenues that jump 46.2% to $35.86 million. Notably, the company has surpassed analyst expectations in every quarter since the third quarter of 2010 by between 21.7% and 53.3%. As a result, expectations may be running high for the current quarter, creating an opportunity to buy in low after they are announced.

    Solid Business with Emerging Competition

    OpenTable has seen tremendous growth over the years, with a stock that has surged from $28.00 to more than $115.00 earlier this year. Since then, the company’s stock has fallen as its growth has slowed and new competition has emerged. Last quarter, the firm’s revenues grew 57% to $34.29 million and its net income more than doubled from 11 cents to 26 cents per share, according to its 10-Q filing.

    Despite these positive results, the company is facing increased competition from a number of competitors. LiveBookings – the firm’s primary European competitor – is launching a new U.S. reservation model that could challenge the company’s Connect service. While the competition doesn’t target its high-end customers, they could cannibalize its second-tier restaurants.

    A Great Investment Opportunity

    OpenTable remains a solid investment opportunity, while its upcoming earnings report could give investors an attractive entry point. Meanwhile, competitors like LiveBookings shouldn’t pose a major competitive threat. OpenTable should continue to dominate the domestic market as long as companies like Google Inc. (GOOG, Free Analysis) and MICROS Systems Inc. (MCRS, Free Analysis) keep away.

    Tags: OPEN, GOOG, MCRS
    Nov 02 2:32 PM | Link | Comment!
  • A Behind the Scenes Look at Raystream (RAYS)

    Raystream Inc. (RAYS, Free Analysis), a provider of high-definition video compression technology to businesses and consumers worldwide, has more than doubled since it began trading on the OTCBB earlier this month. After breaking through $2.00 per share during today’s session, some investors are now asking themselves when a retracement will begin to materialize.

    Key Highlights

    ·         Raystream provides compression technologies designed to help online videos stream faster and look better, and its stock has more than doubled since its IPO.

    ·         Raystream has also been spending large amounts of money on promotional campaigns that some investors are questioning.

    Raystream Aims to Improve Online Video

    Raystream provides compression technology designed to help online videos stream faster and look better.  Run by Brian Peterson and his management team, the company was founded in December of 2009 started in its current capacity in August of this year, and has yet to report any revenues since its inception beyond $200 received prior to last quarter.

    Last quarter, the company reported a net loss of $34,343 driven by $27,358 in payroll expenses and $12,298 in SG&A expenses, with 154,475,000 shares outstanding. Buy thanks to an auto loan and debenture financing, the company was able to raise $1,969,350 in cash to help bolster its balance sheet and finance its ongoing development.

    Promotions Drive Share Price Higher

    Raystream has also been spending money on promotion. According to HotStocked, the company has paid some $30,000 for 23 e-mails sent out during the month of October. Some investors are concerned that these promotions are the sole factor driving the company’s stock price, and therefore it may retreat after the promotions cease in the future.

    There are also some questions about the company’s acquisition of Raystream GmbH. Public records show that it was just started in July of 2011 by Roman Rumpf. Interestingly, Mr. Rumpf stepped down just a month after starting that company and Thomas Friedli became the sole officer. The same Mr. Rumpf also began Raystream (the public company) and stepped down to let Brian Peterson run it.

    Oct 28 4:42 PM | Link | Comment!
  • Top 3 Analyst Stock Picks – ASGN, QTM, FCF

    On Assignment Inc. (NASDAQ: ASGN), Quantum Corporation (NTSE: QTM) and First Commonwealth Financial (NYSE: FCF) are three top analyst stock picks made during today’s session.

    On Assignment Gets $13 Target after Q3 Beat

    On Assignment Inc. (ASGN, Free Analysis), a diversified professional staffing firm providing flexible and permanent staffing solutions in specialty skills, was favorably mentioned by BMO Capital today. After reporting higher-than-expected third quarter financial results, the analyst raised its target price to $13.00 per share and reiterated its Outperform rating.

    During the third quarter, the company reported earnings of 21 cents per share, beating analyst estimates of 18 cents, on revenues of $162.4 million, compared to a $155.68 million consensus. Looking ahead towards the fourth quarter, the firm also anticipates earnings of between 15 cents and 16 cents, which exceeded analyst projections of 14 cents.

    Quantum Upgraded amid Growing DXi Sales

    Quantum Corporation (QTM, Free Analysis), a global storage company specializing in backup, recovery and archive solutions, was upgraded to Outperform by FBN Securities today. After reporting better-than-expected earnings, the analyst upgraded the stock and issued a $3.35 per share price target, citing growing DXi sales as the primary catalyst driving the move.

    During the second quarter, the company reported earnings of 6 cents per share, surpassing 2 cent per share analyst estimates by a healthy margin. Meanwhile, its revenues hit $165 million, which also exceeded analyst projections of just $160.17 million. But looking ahead, the firm’s estimates came in a bit below analyst consensus, although it appears this hasn’t bothered investors too much.

    First Commonwealth Turnaround Gaining Traction

    First Commonwealth Financial (FCF, Free Analysis), a provider of an array of consumer and commercial banking services through its bank subsidiary, was favorably mentioned by Stifel Nicolaus today. After reporting in-line financial results, the analyst raised its target price to $6.50 per share, noting that the company’s turnaround is gaining traction.

    During the third quarter, the company reported earnings of 8 cents per share, which were in-line with analyst estimates. Meanwhile, the firm outlined its plans to solidify its balance sheet, expand its customer relationships and address any troubled debts that remain in its portfolio. The hope is that this long-term approach will ultimately unlock value for shareholders.

    Read more at Sumfolio.com!

    Tags: ASGN, QTM, FCF, analysts
    Oct 28 3:13 PM | Link | Comment!
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