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  • CVS Health: Uninspiring Yields
    Yesterday, 6:33 PM CVS 1 Comment

    Summary

    • CVS Health announced an increase in the capital distribution plan.
    • CVS offered mostly inline guidance for 2015 that includes FCF of around $6 billion.
    • Considering the high valuation of stock based on forward P/E, the stock buyback level is uninspiring and suggestive of a stretched stock value.
  • 3D Systems: Trying To Turn Bullish
    Yesterday, 3:47 PM DDD 8 Comments

    Summary

    • Gartner predicts that 3D Printing will become a strategic technology for 2015.
    • The HP threat in the 3D Printing space is over stated due to a history of delays and a corporate split.
    • Investors should increasing turn bullish on 3D Systems as further stock losses turn us bullish on the stock.
  • The Soaring Yields Of Boeing
    Yesterday, 3:39 AM BA 1 Comment

    Summary

    • Boeing increases the capital distribution plan for 2015 to include a $0.91 quarterly dividend.
    • Boeing maintains a high net payout yield of over 9% that will rise with the higher dividend yield going forward.
    • Investors should accumulate the sock on weakness with this strong signal that the commercial aviation cycle is in full force.
  • A Buying Opportunity In Materialise
    Tue, Dec. 16 MTLS Comment!

    Summary

    • Materialise remains a solid growing 3D printing software stock.
    • The stock now trades at lows following weakness in the momentum of the sector stocks and ending of the IPO lockup.
    • The stock trades at a substantial discount to the recent price target of Canaccord analysts, providing for an attractive entry point with tax-loss selling likely contributing to further selling pressure.
  • Any Values In The Annual Nasdaq-100 Index Removals?
    Tue, Dec. 16 AAL, EA, EXPE Comment!

    Summary

    • The annual re-ranking of the Nasdaq-100 index takes place on December 22.
    • Historical research recommends buying the removed stocks based on strong 1-year returns for those stocks.
    • The stocks being removed from the Nasdaq-100 index this year don't meet the typical profile.
  • Key Takeaways From A Prominent Bullish Thesis On SodaStream
    Sun, Dec. 14 SODA 6 Comments

    Summary

    • Prominent investor Whitney Tilson continues to float around a bullish thesis on SodaStream.
    • The thesis remains that the solid Western Europe business and CO2 refill process provides for a strong foundation.
    • Tilson provided a $40 target price with a wild card for more upside if the U.S. rebounds or the company reduces sales and marketing expenses.
    • New investors can use $20 as a stop loss point on any bet on the turnaround in the stock.
  • Why Frontier Communications Shouldn't Pay A Bigger Dividend
    Sat, Dec. 13 FTR 14 Comments

    Summary

    • Frontier Communications hikes the divided 5% starting in March 2015.
    • With a large debt load, the stock is down on the news with investors wanting more flexibility in capital allocation.
    • Investors should avoid the stock despite a solid 6.8% dividend yield.
  • American Airlines Is Still A Buy After Disappointing Traffic
    Sat, Dec. 13 AAL 1 Comment

    Summary

    • American Airlines reported disappointing November 2014 traffic stats.
    • Despite the weak traffic numbers, the airline still maintains plenty of ability to expand margins with further integration.
    • Investors should continue using any weakness to load up on American Airlines.
  • The Strong Yields Of Northrop Grumman
    Fri, Dec. 12 NOC Comment!

    Summary

    • Northrop Grumman initiates a new $3 billion stock buyback plan.
    • The defense contractor has a long history of stock buybacks, having already spent $2.1 billion year-to-date.
    • The large stock rally of the last three years should have investors concerned over whether the stock is about to peak.
  • Dispelling The Misnomers On Twitter
    Fri, Dec. 12 TWTR 22 Comments

    Summary

    • The market continues to misunderstand the audience reach of Twitter in comparison to Facebook and LinkedIn.
    • Contrary to the news of the week, Instagram is not larger than Twitter.
    • Investors should view the recent slump in the stock as a buying opportunity.
  • Is It Time To Short Apple?
    Thu, Dec. 11 AAPL 119 Comments

    Summary

    • Several analysts make an articulate case for shorting Apple.
    • Apple stopped just short of its previous price target of $120 and is set up for a year-end rally after Tuesday's dive toward $109.
    • The short case on Apple needs a catalyst similar to 2012; questions remain whether that exists now.
  • Another Opportunity To Buy Spirit Airlines
    Wed, Dec. 10 SAVE 5 Comments

    Summary

    • Spirit Airlines reported disappointing traffic stats for November prompting a stock selloff.
    • Analysts provided mixed views on the stock with the negative view pushing the stock down further.
    • Spirit Airlines has substantial room for growth and a reasonable valuation that will provide a cushion on any selloffs.
  • No Surprise: Verizon Margins Under Pressure
    Wed, Dec. 10 VZ 30 Comments

    Summary

    • Verizon confirms that a competitive domestic wireless market is pressuring margins.
    • Sprint only recently directly attacked Verizon customers suggesting the pressures are not short-term in nature.
    • Verizon is no longer cheap based on a large debt load.
  • Zillow: Prepare For The January Trend
    Tue, Dec. 9 Z 2 Comments

    Summary

    • Zillow continues to trade in a seasonal pattern with the real estate market.
    • Typical seasonal user metrics has the MUUs hitting a trough now followed by a huge sequential rally in January.
    • The stock trades at a huge forward PE ratio, but the trend suggests the stock heads higher now.
  • Rice Energy: Utica Expansion Has Huge Potential
    Mon, Dec. 8 RICE Comment!

    Summary

    • Rice Energy has the ability for substantial expansion in the mostly untapped Utica Shale position.
    • Analysts forecast fast growth in 2015 due to a large amount of wells in progress from both the Marcellus and Utica.
    • The recent drop in the stock due to the collapse in oil provides an opportunity for natural gas focused stocks that will benefit from lower oil well natural gas production.
  • Corning: Attractive Yields
    Sat, Dec. 6 GLW 19 Comments

    Summary

    • Corning hiked the dividend to an attractive 2.3%.
    • Corning authorized another $1.5 billion share buybacks that adds to a history of value creation over the past three years.
    • Corning leads a group of old-school technology stocks with high yields.
  • Top 10 Net Payout Yield Stocks For December 2014
    Fri, Dec. 5 CF, GLW, HIG 2 Comments

    Summary

    • The top net payout yield stocks underperformed the market in November.
    • The top ten net payout yield stocks average 13.0% yields to start December.
    • Both Network Appliance and Viacom jumped into the list for December.
  • Delta Air Lines: Hedging Gone Awry
    Fri, Dec. 5 DAL 12 Comments

    Summary

    • Delta Air Lines faces potential large hedging loss on plunging jet fuel prices.
    • November traffic numbers were solid, though not overwhelming, considering the inclusion of the Sunday after Thanksgiving Day traffic after it fell into December last year.
    • Assuming Delta didn't escape a large hedging loss, investors will need to reconsider if it actually does have an industry-leading fuel strategy.
  • Sprint: Capital Problems
    Thu, Dec. 4 S 4 Comments

    Summary

    • Evercore predicts that Sprint will need to raise substantial cash to fund operations and prepare for the 2016 spectrum auction.
    • Domestic wireless pricing wars created by Sprint caused the company to lower adjusted EBITDA forecasts by a dramatic amount for the current fiscal year.
    • Softbank relationship might help with the capital raise, but it won't reduce any dilutive impact.
  • American Airlines: Monster Fuel Savings
    Thu, Dec. 4 AAL 32 Comments

    Summary

    • American Airlines spent an incredible $3.4 billion on jet fuel during Q3.
    • The current jet fuel prices provide for monster savings going forward that isn't factored into analyst estimates for 2015.
    • The target price for American Airlines is at least $85 based on updated EPS estimates.
  • Chesapeake Energy: Don't Forget Natural Gas
    Wed, Dec. 3 CHK 11 Comments

    Summary

    • Investors are ignoring the impact to natural gas on lower drilling for oil.
    • Chesapeake Energy still obtains over 70% of production volumes from natural gas making it one of the biggest beneficiaries of higher natural gas prices.
    • Natural gas inventories remain below 5-year averages.
  • Update: Qunar Q3 '14 Earnings
    Tue, Dec. 2 QUNR Comment!

    Summary

    • Qunar reported Q3'14 earnings.
    • The stock is a buy.
    • The original investment thesis remains intact, and forecasts that Qunar will continue taking market share, while the stock will eventually rally as the market absorbs a high valuation.
  • Update: Laredo Petroleum Q4 Production Numbers
    Tue, Dec. 2 LPI 3 Comments

    Summary

    • Laredo Petroleum reported Q4 production numbers.
    • The stock is a tentative buy for high-risk portfolios.
    • The original investment thesis predicted that operations would improve.
  • Did Seadrill Just Become A Gold Mine To New Investors?
    Tue, Dec. 2 SDRL 165 Comments

    Summary

    • Seadrill slumped following a dividend suspension to reallocate the capital to debt and share buybacks.
    • The company reported solid Q314 results.
    • CenturyLink provides a great example of a revised capital allocation strategy working for new investors.
  • Don't Miss This Opportunity To Buy Glu Mobile
    Sat, Nov. 29 GLUU 17 Comments

    Summary

    • Glu Mobile sold off following Q3 results due to a misunderstanding of the mobile game developer.
    • The Kim Kardashian game remains a bigger success than predicted by investors and the company is less reliant on the game than most understand.
    • Glu Mobile is a strong buy based on the secular trend in mobile and a cheap valuation of roughly 1.5x forecasted revenues.
  • Update: Seadrill Q3'14 Earnings And Dividend Suspension
    Thu, Nov. 27 SDRL 59 Comments

    Summary

    • Seadrill reports Q3'14 earnings.
    • Stock is a strong buy on the irrational selloff.
    • The original investment thesis expected solid results from Seadrill, but it did not anticipate the irrational level of selling to continue.
  • Update: Qihoo Q3 '14 Earnings
    Wed, Nov. 26 QIHU Comment!

    Summary

    • Qihoo 360 reported Q314 earnings.
    • The stock is a tentative buy.
    • The solid results were anticipated in the original investment thesis, yet the long-term market share concerns persist.
  • 3D Systems Paid A Big Premium For Slow Growth
    Tue, Nov. 25 DDD 13 Comments

    Summary

    • 3D Systems paid a 47.5% premium for the shares of Cimatron.
    • Cimatron is a 3D design firm that recently reported only 8% revenue growth and flat EPS numbers over the prior year period.
    • The deal is accretive, but the value add is questionable considering the lack of growth and several other recent software acquisitions.
  • Update: The Fresh Market Q3 Earnings
    Tue, Nov. 25 TFM 1 Comment

    Summary

    • The Fresh Market reported Q314 earnings.
    • Investors should sell the stock at the recent highs.
    • The original investment thesis anticipated the continued struggles of the fresh and organic grocer.
  • Is DISH Network Really Worth More After Wireless Auction?
    Tue, Nov. 25 DISH 3 Comments

    Summary

    • Several analysts forecast high valuations for the wireless spectrum owned by DISH Network.
    • The stock ramped up last week based on the sky-high valuations for the AWS-3 auction.
    • Investors need to tread carefully with assuming the wireless assets of DISH Network are worth the same amount as the inflated wireless auction.
  • Update: Zoe's Kitchen Q3 Earnings
    Sat, Nov. 22 ZOES Comment!

    Summary

    • Zoe's Kitchen reported Q314 earnings.
    • The stock remains a Strong Buy.
    • The original investment thesis isn't altered with fast growth and an attractive dining concept eventually driving the stock higher.
  • Update: Splunk Q3 '15 Earnings
    Sat, Nov. 22 SPLK Comment!

    Summary

    • Splunk reported Q315 earnings.
    • The stock remains a buy.
    • The original investment thesis anticipated that the Spring sell-off was overdone and that the strong results would lead the stock to rebound.