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  • CVS Caremark: Operational Momentum Continues, Buy On Dips
    Sat, Aug. 9 CVS 7 Comments

    Summary

    • CVS continues to show very healthy operating momentum.
    • Yet the share performance has outweighed operational improvements in recent years.
    • As such stay disciplined and buy on dips in this very strong company.
  • Concho Resources - Shares Remain A Bit Pricey In My Eyes Despite Continued Operational Strength
    Fri, Aug. 8 CXO 2 Comments

    Summary

    • Concho Resources continues to show healthy and impressive operational growth.
    • As current GAAP earnings are depressed by accounting rules regarding mark-to-market derivative losses.
    • While the company is expected to double operations again within three year's time, multi-year momentum left little appeal at the moment in my eyes.
  • EOG Resources - Further Pullback Required To Create Appeal
    Fri, Aug. 8 EOG 7 Comments

    Summary

    • EOG reports mixed second quarter results, posting strong earnings and slightly weaker sales on higher derivative losses.
    • The company has an excellent track record, management team and future growth prospects.
    • Given the huge momentum in recent times and the higher valuation, I am awaiting a meaningful pullback before initiating a position.
  • Walt Disney - Great Results, Great Business, But Is It A Great Investment Right Now?
    Wed, Aug. 6 DIS 7 Comments

    Summary

    • Walt Disney continues to display excellent operational momentum.
    • Investors are cheerful about the latest movie successes thanks to the highly successful deal to acquire Marvel.
    • More growth is anticipated with the Shanghai park anticipated to open before the end of 2015.
    • Yet after multi-year momentum I am a bit cautious, worried about the short- to medium-term appeal of the shares.
  • Catalent - Little Appeal In This Debt-Loaded, Slow-Growth And Sponsored Public Offering
    Wed, Aug. 6 CTLT 3 Comments

    Summary

    • Catalent serves the pharmaceutical industry with its sophisticated technologies and development solutions.
    • Yet the business is saddled with debt under its previous ownership of Blackstone, resulting in GAAP losses on the back of excessive interest payments.
    • Despite reduction in leverage following the public offering, the business remains marginally profitable.
    • This combined with the lack of growth and the premium valuation makes me want to stay on the sidelines.
  • Mobileye - Great Product, Great Business, Non-Compelling Investment Opportunity
    Wed, Aug. 6 MBLY 14 Comments

    Summary

    • Mobileye has seen a hugely successful public offering despite continued tensions in the Middle-East.
    • The company's solutions are very appealing, as the company reports accelerating growth and is actually profitable.
    • Yet the current valuation relies on a lot of optimistic assumptions going forwards, limiting the risk/reward opportunity in my eyes.
  • Pioneer Natural Resources - Great Potential, But What About The Recent Revenue Shortfall And Hedging Losses?
    Tue, Aug. 5 PXD 4 Comments

    Summary

    • Pioneer Natural Resources posted disappointing second-quarter results.
    • While results are typically volatile, hedging losses appear quite large, bigger than should be expected.
    • While I see the long-term potential, I am still left with many valuation questions to be answered.
  • Merck - Current Valuation Is Based On Future Pipeline, Amidst Poor Current Earnings Quality
    Tue, Aug. 5 MRK 3 Comments

    Summary

    • Merck reported earnings last week which were largely in line with expectations.
    • This is as the company is in transformation: boosting its pipeline and cut costs to prepare for meaningful and continued growth.
    • Given the poor quality of current GAAP earnings, a lot of the valuation is tied to the potential of the pipeline.
  • Occidental Petroleum - Strong Production And Recent Correction Improves Appeal
    Tue, Aug. 5 OXY 1 Comment

    Summary

    • Occidental Petroleum continues to transform the business, posting record domestic production.
    • This is as the company has solid growth prospects, trades at a fair valuation and pays out a compelling yield.
    • Being positioned between integrated oil majors and pure-play exploration companies, shares offer appeal offering the best of both worlds.
  • Michaels Kors - Greater Appeal As Underlying Business Growth Remains, But Shares Sell Off
    Tue, Aug. 5 KORS 4 Comments

    Summary

    • Michael Kors reports very strong first quarter results, issues a big-time raise in the full year outlook.
    • Yet investors are disappointed as some worry about a built-up in inventories and margin pressure.
    • I think the combination of the recent sell-off amidst continued operational growth creates an appealing opportunity for a great entry point.
  • Chevron - Unexpected Decline In Production Results In A Modest Disappointment Among Investors
    Mon, Aug. 4 CVX 6 Comments

    Summary

    • Chevron posted an unexpected decline in production, as the investment community was looking for a small increase.
    • This is as the company is preparing for a significant planned ramp up in production in the coming three years.
    • This anticipated growth, the fair valuation and strong financial position allow for better days ahead.
  • GoPro - Current Risk-Reward Remains Unattractive
    Mon, Aug. 4 GPRO 6 Comments

    Summary

    • GoPro releases its first quarterly earnings report as a publicly traded company.
    • Despite a modest beat and solid guidance, investors are taking some profits after recent strong momentum.
    • GoPro has a lot to prove at this valuation, I don't believe the current risk-reward opportunity is compelling.
  • Colgate-Palmolive: Great Company, Little Appeal At Current Elevated Prices
    Mon, Aug. 4 CL 4 Comments

    Summary

    • Colgate-Palmolive reported in line to slightly weaker than anticipated results on Thursday.
    • As solid organic sales growth is offset by adverse currency effects.
    • Despite incremental improvements anticipated in future earnings, shares remain expensive in my eyes.
  • ConocoPhillips - Company Remains On Its Long Term Growth Track, Add On Dips
    Sun, Aug. 3 PSX, COP 20 Comments

    Summary

    • ConocoPhillips posted a solid set of earnings on Thursday.
    • As the company reported strong production growth, driven by organic growth and less downtime.
    • Long term appeal remains, driven by the valuation, anticipated growth and fair payouts.
  • Procter & Gamble - Shares Jump As The Company Aims To Sell Up To 100 Non-Core Brands
    Fri, Aug. 1 PG 14 Comments

    Summary

    • Procter & Gamble ended its fiscal year with results which have been largely in line with expectations.
    • Even so investors are happy as the company announced its intentions to sell up to 100 non-core brands.
    • The +3% dividend remains appealing. On significant dips shares offer appeal for long term holders.
  • Exxon Mobil - Correction Warranted As The Underlying Trends Are Not So Favorable
    Fri, Aug. 1 XOM 10 Comments

    Summary

    • Exxon Mobil's earnings beat thanks to asset sales and higher prices, but the quality of the earnings report is low.
    • This is as production continues to fall, coming in below consensus estimates.
    • At current highs, shares are not very appealing with the low operating performance, as production growth should be the company's top priority.
  • American Express - Little Appeal At This Point In The Cycle
    Thu, Jul. 31 AXP 4 Comments

    Summary

    • American Express reports modest sales growth as global spending trends remain healthy.
    • The overall premium valuation is challenging, in my eyes, amidst the reported growth rates and the favorable point in the economic cycle.
    • Combined with downside risks related to the account balances if the economy slows, I remain cautious.
  • UPS - Higher Costs Creates Little Current Appeal In This Long-Term Growth Story
    Thu, Jul. 31 UPS Comment!

    Summary

    • UPS is spending more to improve its peak capacity to avoid last year's holiday shipping delays.
    • This hurts this year's earnings, but is a positive development for the future.
    • The strong growth profile remains attractive, shares offer appeal on dips.
  • Amgen - Continued Appeal With Shares Trading At Fresh All-Time Highs
    Wed, Jul. 30 AMGN 5 Comments

    Summary

    • Amgen reports very strong second quarter numbers.
    • As it raises the full year guidance and cut costs during the good times.
    • More appeal left amidst a fair valuation, strong pipeline, improved diversification and anticipated further growth.
  • Pfizer - Guides Lower Again, Uncertainty About The Future Strategy Remains
    Wed, Jul. 30 PFE 7 Comments

    Summary

    • Pfizer's second-quarter results are more or less in line.
    • The company lowered the full-year sales guidance on the back of the loss of exclusivity in key drugs.
    • The poor track record, lack of organic growth and poor experience with past dealmaking makes me cautious.
  • Dollar Tree's Acquisition Of Family Dollar: Limited Upside, Integration And Leverage Risks Remain
    Wed, Jul. 30 DG, FDO, DLTR 2 Comments

    Summary

    • Dollar Tree reaches out as prominent investors urged Family Dollar to sell itself.
    • The deal creates the largest dollar store chain in the US.
    • Yet the valuation is a bit full, while there are some integration challenges and leverage concerns.
  • Zillow Acquires Trulia, Creating A +$10 Billion Online Real Estate Player
    Tue, Jul. 29 Z, TRLA 7 Comments

    Summary

    • Zillow is set to acquire Trulia in a $3.5 billion all-stock deal.
    • The deal creates an absolute leader in online residential real estate solutions and will save an anticipated $100 million in costs per annum.
    • Yet a +$10 billion valuation seems a bit stretched after runaway momentum, leaving a non-compelling risk-reward scenario at the moment.
  • United Technologies - Limited Appeal Following Recent Underperformance As Valuation At Par With The Market Is Fair
    Tue, Jul. 29 UTX 5 Comments

    Summary

    • United Technologies' second quarter results are in line with expectations.
    • Investors worry a bit about softer organic sales growth as well as order intake.
    • Shares are fairly valued at multiples being equivalent to the market. Leverage following Goodrich deal limits the options for very high dividends or more aggressive share repurchases.
  • El Pollo Loco - What's Left After Very Strong Opening Day Returns?
    Tue, Jul. 29 CMG, LOCO 18 Comments

    Summary

    • Shares of El Pollo Loco spike up on their opening day.
    • As investors are very upbeat about prospects for fast-casual dining chains.
    • The risk-reward is no longer appealing in my eyes after the first day momentum.
  • Cummins - Investors Are Not Impressed With Second Quarter Earnings Quality
    Mon, Jul. 28 CMI Comment!

    Summary

    • Investors are not too impressed with Cummins' results despite a raise of the full year sales guidance.
    • The weaker second quarter quality of earnings might be too blame.
    • Shares trade at multiples similar to the market despite being a cyclical player, although it has a solid track record.
  • Facebook - Impressive ARPU Gains And Operating Leverage Push Momentum Further
    Sun, Jul. 27 FB 12 Comments

    Summary

    • Facebook again reports very strong second quarter results, pushing up shares to fresh all-time highs.
    • What is really becoming apparent is the very strong operating sales leverage of the business model.
    • While shares remain astonishingly expensive based on the current results, it is easy to envision a scenario two or three years down the road justifying the valuation.
  • Union Pacific Corporation - Steady As She Goes, Buy On Dips
    Sun, Jul. 27 UNP 9 Comments

    Summary

    • UNP continues to show nice results, driven by strong underlying volume growth.
    • The company is well diversified in end markets and has an amazing track record for the past decade.
    • I am awaiting a buying opportunity at market multiples, awaiting a pullback to $90 per share.
  • Market Ignores AbbVie's Impressive Sales Due To Reliance On Humira
    Sat, Jul. 26 GILD, ABBV 11 Comments

    Summary

    • AbbVie posts solid second quarter results.
    • After the Shire acquisition, all eyes are on the anticipated HCV launch later this year.
    • Success is required in HCV and the remaining pipeline to tackle the upcoming expiration of Humira in 2016.
  • 3M: Extremely Well-Led Business Is Appealing If A Correction Takes It To General Market Multiples
    Fri, Jul. 25 MMM 7 Comments

    Summary

    • 3M reports uneventful second quarter results.
    • Continued organic growth, margin expansion and increased R&D should boost growth and earnings for years to come.
    • Combined with appealing dividends and share repurchases, shares offer appeal on a 10-15% dip which brings the valuation at par with wider equity markets.
  • Visa - Dollar Strength And International Tensions Will Have An Impact In The Final Quarter
    Fri, Jul. 25 V 18 Comments

    Summary

    • Visa posts solid third-quarter earnings, in line with expectations.
    • The company turns more cautious for the final quarter, driven by international uncertainty and dollar strength.
    • Premium valuation leaves little appeal despite solid growth; I worry about long-term technological changes undercutting its business model somehow.
  • Amazon.com: Bezos Seriously Testing Investors' Patience And Trust After Guiding For A Big Loss
    Fri, Jul. 25 AMZN 22 Comments

    Summary

    • Amazon.com posts second-quarter results, which are more or less in line with expectations.
    • The shocker is the guidance for a large loss in the third quarter, which could result in a full-year loss.
    • Bezos is seriously testing investors' patience, who are becoming frustrated with no improvements on the bottom line and the lack of transparency.
  • Qualcomm: China Problem A Buying Opportunity?
    Fri, Jul. 25 QCOM 16 Comments

    Summary

    • Qualcomm posts solid results but reveals a nasty surprise.
    • It has serious regulatory issues in China and customers appear to be under-reporting device sales to the company.
    • Yet the big sell-off might just provide a bit of an opportunity, as Qualcomm is likely to tackle the issues.