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  • Wells Fargo: Attractively Priced But Not For Everybody
    Yesterday, 7:13 PM WFC 1 Comment

    Summary

    • Wells Fargo continues to produce solid earnings and returns a large amount of capital to shareholders despite NIM contraction.
    • Investors need to stay vigilant on any signs of higher NPAs going forward, including those from the energy sector.
    • Based on updated 2016 earnings estimates, Wells Fargo remains a cheap stock though other opportunities exist in the sector for more aggressive investors.
  • IBM: High Yields Override Earnings Focus
    Yesterday, 2:25 PM IBM Comment!

    Summary

    • More weakness for IBM following another disappointing earnings report.
    • Analysis of yields suggests numbers remain relatively high even after a reduced stock buyback during Q4.
    • Strong Q4 cash flow and debt reductions set the company up for a solid 2015.
  • Schlumberger: Not The Sector Stock To Own For A Rebound
    Yesterday, 12:35 PM SLB 8 Comments

    Summary

    • Schlumberger has survived the oil slump with a smaller hit to the stock price due to a better capital return program including a significant stock buyback.
    • The movements by the company suggest that oil prices should rebound.
    • Investors might want to follow the lead of Schlumberger and invest in other beaten down stocks in the sector.
  • Will ExOne Warn Again?
    Yesterday, 7:40 AM XONE 2 Comments

    Summary

    • ExOne is setting up for another quarterly warning.
    • Stock recently hit an all-time low below $14 based on those weak expectations and a sector under pressure.
    • ExOne remains intriguing for a turnaround in 2015 now that investors have more reasonable expectations in the sector.
  • Virgin America: How Not To Update The Market
    Fri, Jan. 23 VA 8 Comments

    Summary

    • Virgin America provides a great example of how not to update the market with the initial report after an IPO.
    • The failure to properly highlight where fuel costs will fall next year is hitting the stock.
    • Virgin America will rebound based on a cheap valuation and an elimination of fuel hedges heading into the second half of 2015.
  • Update: Verizon Q4 Margins Remain Under Immense Pressure
    Fri, Jan. 23 VZ 3 Comments

    Summary

    • Verizon Communications reported Q414 earnings.
    • The stock is an avoid.
    • The investment thesis remains intact that investors should avoid the stock until the pricing pressure in the domestic wireless markets dissipates.
  • Update: Delta Q4 2014 Earnings Offer Investors Both Good And Bad
    Thu, Jan. 22 DAL 2 Comments

    Summary

    • Delta reports Q4'14 earnings.
    • The stock remains a Buy though not preferred stock in the industry.
    • The original investment thesis remains intact based on huge hedging losses reducing the premium deserved by this airline.
  • Is American Airlines Finally Hitting Headwinds?
    Tue, Jan. 20 AAL 10 Comments

    Summary

    • Some recent headlines suggesting American Airlines might struggle in 2015 after 100% gains in 2014.
    • The stock has sold off in January on the fears of rising labor costs and weak traffic numbers. that 2015 .
    • 2015 earnings estimates are surging in contradiction to the stock price providing another buying opportunity.
  • Lack Of Momentum Hitting Tesla
    Mon, Jan. 19 TSLA 124 Comments

    Summary

    • Questionable actions by the rock star CEO are starting to impact the stock after getting a pass for years.
    • Fears of increasing competition are likely to weigh on the stock whether the threats turn out relevant or not.
    • The market is starting to question the vast valuation premium on Tesla and that is more important than the quality of the cars.
  • Update: Goldman Sachs Reports Q4'14 Earnings
    Sat, Jan. 17 GS 1 Comment

    Summary

    • Goldman Sachs reported Q4'14 earnings.
    • The stock remains a Strong Buy.
    • The original investment theory of solid yields and huge earnings remains intact.
  • Bank Of America: Q4 Earnings Miss Nothing To Sweat About
    Fri, Jan. 16 BAC 24 Comments

    Summary

    • Bank of America reported weak Q4'14 numbers that disappointed the market.
    • The bank continues to generate solid core profits including $3.1 billion in Q4.
    • Investors should not over think the situation with the stock trading at an attractive valuation and slowly making it through a tough environment.
  • DISH Network: Over-The-Top Service Adds Limited Value
    Fri, Jan. 16 DISH 1 Comment

    Summary

    • DISH Network begins offering limited pay-TV services online.
    • The satellite TV operator has a first mover advantage, but the service doesn't appear to offer anything proprietary that couldn't be replicated or enhanced.
    • Content providers with the best content will benefit the most from these scaled-down online packages that feature only top channels such as ESPN and TNT.
  • Update: Citigroup Q4'14 Earnings Disappoint
    Fri, Jan. 16 C Comment!

    Summary

    • Citigroup reported Q4'14 earnings.
    • The stock is a Strong Buy.
    • The original investment thesis remains intact with the stock trading below book value and reasonable expectations for solid earnings in 2015.
  • United Airlines: More Upside After Solid Investor Update
    Fri, Jan. 16 UAL Comment!

    Summary

    • United Airlines continues to improve operations and will benefit from lower fuel hedges in 2015.
    • United Airlines actually outperformed American Airlines during the quarter.
    • Is it possible that United is cheaper now than back in October after a large rally in the stock?
  • JPMorgan Chase Earnings Hit By More Legal Fees
    Thu, Jan. 15 JPM Comment!

    Summary

    • JPMorgan Chase reported Q4'14 earnings.
    • The stock remains a Buy.
    • The original investment thesis remains in tact that solid earnings will eventually push bank stocks higher as legal expenses decline going forward.
  • SolarCity: Failure To Close The Electricity Loop Looms Large
    Wed, Jan. 14 SCTY 230 Comments

    Summary

    • Rooftop solar panel consumers face higher charges for accessing the public utility grid.
    • SolarCity admits the solar install thesis is greatly harmed with the proposed monthly fees by public utilities in California.
    • The already high costs to sell solar systems is already a major problem prior to the recent slump in energy prices further questioning the competitiveness of solar.
  • Why Amazon Is Likely To Never Make A Profit
    Wed, Jan. 14 AMZN 40 Comments

    Summary

    • New entry in the online retail space as a familiar CEO that hopes to undercut Amazon prices.
    • The planned future of massive profits once competition in the online retail space dissolves is encountering an unexpected problem.
    • Amazon's stock is starting to falter with the reduction in future cash flows and the ability to invest in other giant tech companies that are profitable.
  • Goldman Sachs: Is The Rebound Over?
    Tue, Jan. 13 GS 2 Comments

    Summary

    • Some signs exist that the rebound in Goldman Sachs is peaking.
    • While earnings estimates are plateauing, Goldman Sachs continues smashing estimates each quarter.
    • The stock remains attractive with the company buying the cheap stock, though not as aggressively as in the past.
  • Twitter: Unleashing Logged-Out Ads
    Tue, Jan. 13 TWTR 3 Comments

    Summary

    • Twitter has a large global reach that isn't accurately recognized.
    • At CES, the company made progress toward monetizing Tweets beyond the actual Twitter website and app.
    • An endorsement from Mark Cuban highlights the potential to develop organic search into another stream of revenue.
    • The revenue potential pegged at $1.3 billion appears vastly larger than forecast, providing significant upside to the revenue story.
  • Zoe's Kitchen: Cheaper Than You Think
    Tue, Jan. 13 ZOES 1 Comment

    Summary

    • Zoe's Kitchen remains a relatively small restaurant concept compared to other recent IPOs.
    • Though compared to Chipotle Mexican Grill, Zoe's Kitchen has nowhere near the same valuation multiple.
    • Without any stock gains in 2015, Zoe's Kitchen would end the year trading at a pedestrian 2x 2015 revenue estimates making the stock extremely cheap.
  • Update: SandRidge Energy Finalizes Q3 Numbers And SEC Review
    Sun, Jan. 11 SD 12 Comments

    Summary

    • SandRidge released finalized Q314 earnings numbers and SEC review details.
    • The stock remains a Sell.
    • The original investment thesis is not altered by this report with limited details on the impact to 2015 numbers.
  • The New Dogs Of The Dow - 2015
    Sat, Jan. 10 BA, CSCO, GS 12 Comments

    Summary

    • The Dogs of the Dow theory no longer works as intended due to stock buybacks.
    • The Dow stocks focused solely on paying dividends will remain on the list for years regardless of stock performance.
    • The Net Payout Yield concept is a better method for playing the theory of finding the cheapest Dow stocks based on the higher yield.
  • Update: Sprint Makes Minimal Improvements In Quarterly Subscriber Additions
    Fri, Jan. 9 S 9 Comments

    Summary

    • Sprint has released preliminary FQ3 subscriber numbers.
    • The stock remains a Sell.
    • The comparative disappointing subscriber additions continue to enhance the investment thesis that Sprint is not investable until the pricing pressure is resolved or more capital is raised.
  • Update: T-Mobile Adds More Subscribers In Q4 Without Adding Value
    Fri, Jan. 9 TMUS 4 Comments

    Summary

    • T-Mobile released solid Q4 customer additions.
    • The stock remains a Sell.
    • The data released by T-Mobile doesn't change the ongoing investment thesis that the stock must be avoided until aggressive pricing stops hitting earnings.
  • The Bullish Yields Of Seagate Technology
    Fri, Jan. 9 STX 3 Comments

    Summary

    • Seagate announces interesting products at CES including the wireless product that offers a 500GB portable wireless hard drive that is compatible with popular smartphones and tablets.
    • Bullish yields including a large-scale stock repurchase plan have supported the surging stock price over the last several years.
    • Seagate is a solid buy based on value and continuously high yields.
  • Update: Record Backlog And Orders Support High Yields At Boeing
    Thu, Jan. 8 BA 5 Comments

    Summary

    • Boeing released record numbers for 2014.
    • The stock remains a Strong Buy.
    • The record 2014 numbers enhance the original investment thesis.
  • Yelp: Misunderstood And Cheap
    Thu, Jan. 8 YELP 23 Comments

    Summary

    • Yelp faces short-term international traffic issues due to moves by Google.
    • The stock trades at very attractive levels compared to other social media stocks.
    • Yelp continues delivering robust revenue growth even in the oldest markets nearing 10 years old.
  • Seadrill: Perfect Storm In Offshore Drilling Market Provides Perfect Buying Opportunity
    Thu, Jan. 8 SDRL 44 Comments

    Summary

    • Seadrill is perfectly aligned for a deepwater drilling market where old rigs are scraped in favor of new rigs.
    • Competitors including Transocean are busy scraping a sizable amount of old rigs.
    • Seadrill has a large backlog for the current year leading to more stable earnings projections than other players in the sector.
  • Time To Breakup JPMorgan Chase?
    Wed, Jan. 7 JPM 3 Comments

    Summary

    • An analyst provides a compelling valuation benefit for breaking up JPMorgan Chase.
    • The top five financial institutions continue to control a larger share of aggregate assets, subjecting the companies to large regulatory hurdles.
    • The analysis suggests JPMorgan Chase and other big banks are out of favor and provide a compelling investment opportunity, compared to a reason to split up the company.
  • Top 10 Net Payout Yield Stocks For January 2015
    Tue, Jan. 6 CF, STX, IR Comment!

    Summary

    • The top net payout yield stocks outperformed the market in December.
    • The top ten net payout yield stocks average 12.9% yields to start January. .
    • The list had limited changes from December with CF Industries maintaining the top spot. .
  • The Surging Yields Of NetApp
    Mon, Jan. 5 NTAP 1 Comment

    Summary

    • NetApp has an incredible amount of cash on the balance sheet compared to the market value.
    • The data storage company produces a healthy amount of cash flow each quarter.
    • The large stock buyback and attractive valuation presents an attractive situation for patient investors.
  • Update: Bank Of America Sued Again By Ambac
    Sat, Jan. 3 BAC 21 Comments

    Summary

    • Bank of America sued by Ambac for $600 million.
    • The stock remains a buy.
    • The original investment thesis didn't expect an immediate lawsuit filing, but the numbers involved are immaterial to previous charges.