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  • Schlumberger: Still Raking In Profits
    Yesterday, 3:02 PM SLB 2 Comments

    Summary

    • Schlumberger reported solid Q1'15 earnings that easily beat analyst estimates.
    • The oilfield services giant is holding better than most due to a focus on international revenue that now accounts for 68% of quarterly revenue.
    • Stock remains expensive even compared to peak 2014 earnings.
  • Citigroup: Strong Takeaways From Q1 Earnings
    Yesterday, 12:15 PM C 6 Comments

    Summary

    • Citigroup reported Q1'15 earnings that easily surpassed analyst estimates.
    • The bank continues to benefit from large cost savings while maintaining the revenue base.
    • Share buybacks will start kicking in to a tailwind for earnings.
  • American Express: Profits Continue Flowing
    Fri, Apr. 17 AXP 2 Comments

    Summary

    • American Express reported Q115 earnings that easily surpassed analyst estimates.
    • The company continues producing solid profits and returning capital to shareholders.
    • The stock is expensive considering the lack of growth, but the situation is hardly dour.
  • Vapor: Shifting Into A Retail Opportunity
    Thu, Apr. 16 VPCO 4 Comments

    Summary

    • With the collapse of the e-cig market, Vapor made a quick corporate shift to refocus the business on the promising vaporizer segment.
    • The merger with Vaporin and rollout of retail stores provides the company with an opportunity to build a social scene for vaporizers that big tobacco can't easily replicate.
    • Vapor expects ongoing losses to build out the vape shop strategy, placing high risk with the opportunity to own a pure-play e-cig/vaporizer stock.
  • Bank Of America: Don't Over-Analyze Results
    Thu, Apr. 16 BAC 10 Comments

    Summary

    • Bank of America reported disappointing Q1'15 results.
    • The bank remains a highly rate sensitive play, suggesting investors shouldn't over-analyze quarterly results due to declining rates.
    • Due to cost management and a cheap value, Bank of America remains an attractive pick.
  • Stratasys: Surveys Suggest More Pain
    Wed, Apr. 15 SSYS 4 Comments

    Summary

    • Surveys continue to suggest that the MakerBot unit is struggling.
    • The recent hiring of a new sales leader is not an encouraging sign of an immediate improvement in sales trends.
    • Normalized earnings provide plenty of upside once Stratasys handles the issues with the desktop printers and focuses back on the industrial printers sector.
  • JPMorgan Chase: Thesis Playing Out
    Wed, Apr. 15 JPM 3 Comments

    Summary

    • JPMorgan Chase produced strong Q1 2015 earnings that surpassed analyst estimates.
    • The promise of lower legal fees and regulatory fines is starting to play out.
    • Despite trading at multi-year highs, the stock remains extremely cheap with multiple catalysts.
  • Southwest Airlines: One Airline We Don't Love
    Tue, Apr. 14 LUV 19 Comments

    Summary

    • Southwest Airlines remains a cheap stock compared to the market, but expensive relative to the airline sector.
    • Several airlines offering cheaper valuations ranked higher than Southwest on annual airline quality rankings.
    • JetBlue produced larger returns in the last year, and other airlines provide a similar opportunity to outperform Southwest Airlines at these levels.
  • Splunk: One Major Concern Remains
    Tue, Apr. 14 SPLK 3 Comments

    Summary

    • Splunk remains highly valued based on normal investing metrics such as over 13x forward revenues.
    • The data analytics sector continues to display major growth potential with most corporations not even implementing big data plans yet.
    • Constantly rising shares outstanding are a major concern for a stock already richly valued.
  • Seventy Seven Energy: Progress Toward Value Stalled
    Tue, Apr. 14 SSE 4 Comments

    Summary

    • Seventy Seven Energy remains reliant on the former parent Chesapeake Energy with contracts that quickly start expiring over the next two years.
    • The stock is attractively priced if the market turns allowing for a shift away from Chesapeake Energy.
    • Seventy Seven Energy maintains too much risk to own the stock until the market shows signs of a rebound.
  • The New Dogs Of The Dow - Q1 2015
    Mon, Apr. 13 AAPL, BA, CAT 1 Comment

    Summary

    • The New Dogs of the Dow had Q1 returns that easily exceeded the Dogs of the Dow theory and the DJIA.
    • The average stock in the Net Payout Yields based list has a yield of 8.7% starting Q1.
    • After a large loss during Q1, Caterpillar tops the list with a 11.6% yield.
  • ExOne: Does It Have A Liquidity Issue?
    Sun, Apr. 12 XONE 12 Comments

    Summary

    • After the market close on a Friday, ExOne registered a shelf offering for up to $150 million.
    • Due to dwindling cash balances and ongoing operating losses, investors shouldn't be surprised that the 3-D printer manufacturer might need more cash.
    • Investors should remain on the sidelines until more details emerge on the prospects for ExOne facing a liquidity issue.
  • Is ConocoPhillips Ramping Up Production?
    Sat, Apr. 11 COP 21 Comments

    Summary

    • ConocoPhillips announced a big shift in capital spending from large-scale projects to short-cycle projects.
    • The company continues to maintain capital spending at around $11.5 billion established back in January that will keep production growth in the 2% to 3% range.
    • The biggest concern is that ramped up domestic production could face pricing pressure with the inability to obtain export to international markets.
    • Stock remains expensive, potentially propped up by a large 4.4% dividend yield.
  • Lorillard: Time To Exit
    Sat, Apr. 11 LO 25 Comments

    Summary

    • Lorillard and Reynolds American merger approaches FTC decision.
    • Lorillard hit new highs over $70 this week.
    • With a high PE multiple, the downside risk appears to far outweigh any benefits from holding the stock to collect the merger discount.
  • Habit Restaurants: Buy This Dip
    Thu, Apr. 9 HABT 6 Comments

    Summary

    • Habit Restaurants surprises analysts with strong comps.
    • The company filed for selling shareholders to unload roughly 22% of outstanding shares.
    • The combination of the news provides an ideal time to buy a premier restaurant concept.
  • Chuy's: Not As Bad As Perceived
    Wed, Apr. 8 CHUY 2 Comments

    Summary

    • Chuy's offers the unique opportunity for a fast-growing restaurant stock trading at multi-year lows.
    • The Tex-Mex concept remains relatively small with only 61 locations in 14 states.
    • The slowing unit development plan, along with a better real estate strategy, will help ramp up new locations faster and improve margins in 2016.
    • Chuy's stock isn't cheap, but it offers an attractive valuation with annual growth continuing at the nearly 20% clip.
  • Zillow: Don't Sell In May
    Tue, Apr. 7 Z 8 Comments

    Summary

    • Seasonal trends suggest that Zillow's stock should be held through the summer months.
    • Recent analyst downgrades have the stock trading at yearly lows heading into the typical strong period.
    • The stock isn't cheap, but the seasonal pattern is too compelling to ignore.
  • Top 10 Net Payout Yield Stocks For April 2015
    Mon, Apr. 6 CBS, IBM, CCE 5 Comments

    Summary

    • The top ten net payout yield stocks underperformed the market in March due to a couple of weak individual stocks.
    • The top ten net payout yield stocks averaged yields of 13.3% to start April.
    • Motorola Solutions continues to hold the highest yield now at 18.7%.
  • Halliburton: One Step Closer
    Sun, Apr. 5 HAL 16 Comments

    Summary

    • Shareholder approved the merger of Halliburton and Baker Hughes.
    • Halliburton is moving forward with asset sales suggesting the U.S Justice Department is working towards a positive solution.
    • The new Halliburton still trades at an attractive valuation providing potential alpha for the sector with the ultimate return based on oil prices.
  • The Intriguing Buyback Potential Of AIG
    Thu, Apr. 2 AIG 36 Comments

    Summary

    • AIG registered with the SEC to unload its 46.0% position in AerCap.
    • AIG will obtain proceeds of roughly $4.3 billion at current prices.
    • The history of large buybacks and a stock trading below book value make AIG an intriguing pick with a catalyst for 2015.
  • Delta Air Lines: Not Much Of A Bullish Call
    Tue, Mar. 31 DAL 14 Comments

    Summary

    • Analyst predicted over 20% upside for Delta Air Lines.
    • The price target doesn't match the improving EPS estimates.
    • Delta Air Lines remains attractive compared to the industrial sector with risks more balanced than most think.
  • Apple: Big Opportunity To Create Value In Mobile Payments
    Tue, Mar. 31 AAPL 41 Comments

    Summary

    • Apple Pay revenues will probably never impress the market.
    • The benefit exists in the high margins and value creation of eventually controlling mobile payments.
    • Apple remains a cheap stock with a big catalyst in Apple Pay that could help boost the PE ratio due to the recurring nature of payments fees.
  • 3 Opportunities For InvenSense To Grow
    Tue, Mar. 31 INVN 14 Comments

    Summary

    • InvenSense is only scratching the surface with premium smartphones.
    • Future market opportunities include IoT and wearables, along with growing the amount of content in existing smartphones.
    • InvenSense continues to trade at an attractive valuation, with the market overly focused on the current gross margins due to a high concentration of revenue from Apple and Samsung.
  • Why Is Home Depot Accelerating The Buyback Program?
    Tue, Mar. 31 HD 24 Comments

    Summary

    • Home Depot released details on an accelerated stock buyback during March.
    • The company continues to aggressively repurchase shares even as the stock soars.
    • The expensive valuation suggests the company shouldn't blindly buy shares based on having cash in the bank.
  • Sears Holdings: Don't Undervalue The REIT Plans
    Mon, Mar. 30 SHLD 32 Comments

    Summary

    • Sears Holdings is quickly moving towards a REIT transaction to unlock value.
    • The company has provided limited information on the up-to 300 stores included in the transaction.
    • The mall REIT space remains on fire, with related stocks hitting multi-year highs.
    • Previous well-documented analysis appears to now underestimate the real estate holdings of Sears.
  • Merck: Buyback Plan Not As Impressive As It Appears
    Sun, Mar. 29 MRK 13 Comments

    Summary

    • Merck announces another large stock buyback.
    • Though Merck has a solid net payout yield, the yield doesn't match the highest in the market.
    • The smaller buybacks plan than two years ago along with the higher stock price is a big negative for the stock going forward.
  • SeaDrill: Plan Playing Out Provides Major Long-Term Catalyst
    Sat, Mar. 28 SDRL 99 Comments

    Summary

    • Competitors scrapping rigs continues playing out as expected.
    • SeaDrill remains best positioned for a rebound in oil.
    • The stock remains extremely cheap with the potential for a major catalyst, if the deepwater demand rebounds as originally forecasted.
  • Yelp Has A Solution To The Google Problem
    Sat, Mar. 28 YELP 30 Comments

    Summary

    • Yelp trades at multi-year lows due to user problems and an unflattering documentary.
    • Mobile app provides a solution to the user problem, but it requires execution.
    • Yelp remains an extremely attractive valuation with plenty of upside potential if it can execute on the mobile potential.
  • Potbelly: Rebound Potential
    Fri, Mar. 27 PBPB Comment!

    Summary

    • Potbelly continues a trend of beating estimates while the stock bumps along the bottom.
    • Despite the large stock decline after irrational trading following an IPO, the stock trades at an exceptionally large forward PE ratio.
    • Investors need to keep the stock on a watch list due to the long-term growth potential, but one shouldn't expect the stock to rebound now.
  • Twitter: Livestreaming App Provides User Catalyst
    Fri, Mar. 27 TWTR 4 Comments

    Summary

    • Twitter bought Periscope for under $100 million.
    • The app in beta provides livestreaming in a similar manner to the Meerkat app that stole the show at SXSW.
    • The livestreaming engagement metrics are very promising and could provide a huge boost to the struggling user metrics at Twitter.
  • Freeport-McMoRan: Finally Interesting After Positive Stock Reaction
    Thu, Mar. 26 FCX 23 Comments

    Summary

    • Freeport-McMoRan cut quarterly dividend by 84% to $0.05.
    • The stock had a positive reaction to a very negative corporate event.
    • The positive action in copper prices turns us to a tentative bull on the stock.
  • Qualcomm: Wait For The Accelerated Buyback To Kick In Before Buying
    Thu, Mar. 26 QCOM 23 Comments

    Summary

    • Qualcomm announced a large buyback plan with an accelerated portion to start during FQ3.
    • While the headline is attention grabbing, stock option grants could dilute the impact.
    • Research suggests only loading up on a stock based on buybacks after they occur and not prior.