Seeking Alpha
View as an RSS Feed

The Value Investor  

View The Value Investor's Articles BY TICKER:
A, AA, AAOI, AAP, AAPL, AB, ABB, ABBV, ABT, ACHC, ACM, ACN, ACOM, ACT, ACTA, ACTV, ADBE, ADI, ADM, ADPT, ADSK, ADTN, AEO, AEP, AET, AGCO, AGIO, AGN, AIG, AKAM, AKRX, AKS, ALB, ALK, ALLY, ALTE, AMAT, AMBA, AMBR, AMC, AMD, AMGN, AMSG, AMT, AMZN, AN, ANEN, ANET, ANF, ANFI, ANGI, ANN, ANR, ANTM, APA, APC, APFC, APKT, APO, APOL, AR, ARB, ARBA, ARG, ARMK, ARO, ARPI, ARUN, ARW, ASCA, ASNA, ASPN, ASTC, ATEN, ATI, ATRO, ATU, AVA, AVAV, AVGO, AVP, AWAY, AWI, AXAS, AXP, AXTA, AYI, AZN, AZO, AZZ, BA, BAC, BAH, BATS, BAX, BBBY, BBEP, BBRY, BBT, BBY, BC, BCC, BCEI, BCR, BCS, BDC, BDX, BEAM, BERY, BF.B, BFAM, BGG, BHI, BID, BIG, BIND, BIO, BKI, BKR, BKS, BLK, BLMN, BLOX, BMC, BMY, BNFT, BNNY, BOBE, BOKF, BP, BRC, BRCD, BRCM, BRDR, BRLI, BRS, BRSS, BSX, BTU, BURL, BWA, BWLD, BYI, C, CA, CAG, CAH, CALM, CAMP, CAPL, CAR, CASY, CAT, CBF, CBOU, CBS, CCI, CCL, CCS, CDNS, CECO, CERN, CFN, CHD, CHDN, CHEF, CHGG, CHK, CHRW, CHS, CHSI, CHTR, CHUY, CIEN, CIVI, CL, CLB, CLC, CLF, CLGX, CLH, CLR, CLVS, CMA, CMCSA, CMCSK, CMG, CMI, CMLS, CMN, COG, COH, COL, COMM, CONE, COO, COP, COST, COTY, COUP, COV, COVS, CP, CPB, CPE, CPN, CPTS, CPWR, CREE, CRM, CROX, CRS, CRZO, CS, CSC, CSCO, CSTM, CSX, CTAS, CTB, CTLT, CTRL, CTSH, CTXS, CUB, CUDA, CVG, CVS, CVT, CVX, CWEI, CXO, CY, CYBR, CYBX, CYH, CYNI, CYNO, CYT, D, DAN, DAR, DATA, DCI, DD, DDD, DE, DECK, DELL, DF, DFRG, DFS, DG, DHR, DIOD, DIS, DISH, DKL, DLTR, DMND, DNKN, DOLE, DOV, DOW, DOX, DPZ, DRC, DRI, DRIV, DRQ, DSW, DUF, DUK, DVN, EBAY, ECL, ECOM, ECR, ED, EDG, EGL, EL, ELOQ, EMC, EME, EMN, EMR, ENDP, ENR, EOG, EOPN, EPE, EPZM, ESL, ESNT, ESRX, ETN, EVHC, EXP, EXPE, EXPR, EXTR, EYES, F, FANG, FAST, FATE, FB, FBHS, FCAU, FCX, FDO, FDS, FDX, FE, FEYE, FFIV, FI, FICO, FINL, FIO, FIRE, FITB, FIVE, FIVN, FL, FLEX, FLO, FLS, FLTX, FMC, FMI, FNB, FNSR, FOE, FOSL, FOXF, FPRX, FRAN, FRPT, FRX, FSLR, FSS, FTK, FTR, FUEL, FXCM, GBX, GCI, GDP, GE, GEF, GES, GGG, GIII, GILD, GIMO, GIS, GLT, GLW, GM, GMCR, GME, GMED, GNC, GNTX, GNW, GOGO, GOOG, GOOGL, GPC, GPN, GPRO, GPS, GRPN, GRUB, GS, GSK, GT, GTI, GTIV, GWAY, GWR, GWRE, GWW, HABT, HAIN, HAL, HAR, HAS, HAWK, HBAN, HBI, HCP, HD, HDS, HEI.A, HELE, HES, HITT, HIVE, HL, HLF, HLT, HMA, HMHC, HNZ, HOG, HON, HP, HPQ, HQY, HRB, HRC, HRL, HRS, HSH, HSY, HTLD, HTZ, HUBS, HUM, HUN, HXL, IBM, ICPT, IHS, ILMN, IMAX, IMPR, IMS, INCR, INGR, INT, INTC, INTU, IPGP, IPHS, IR, ISRG, ITT, ITW, JACK, JAH, JAZZ, JBHT, JBL, JBSS, JCI, JCP, JDAS, JDSU, JEC, JMBA, JNJ, JNPR, JNS, JONE, JOY, JPM, JWN, K, KATE, KBH, KBIO, KDN, KING, KKD, KMB, KMX, KN, KNX, KO, KORS, KR, KRFT, KS, KSS, KSU, KWK, KYAK, KYTH, LAD, LB, LEA, LEAF, LECO, LEN, LGF, LGIH, LH, LINE, LKQ, LLY, LMIA, LMNS, LMT, LNKD, LNN, LOCK, LOCO, LOW, LPDX, LPI, LPX, LQ, LUK, LULU, LUV, LVLT, LVS, LXK, M, MA, MAA, MAT, MBLY, MC, MCD, MCK, MCS, MDLZ, MDP, MDR, MDT, MET, MFGLQ, MFRM, MG, MGNX, MHFI, MHK, MIDD, MIK, MKC, MKL, MKTO, MLNX, MMI, MMM, MNK, MNST, MO, MOBL, MODN, MOLX, MON, MONT, MOS, MOV, MPC, MPLX, MPO, MPX, MRC, MRD, MRIN, MRK, MRKT, MRO, MRVL, MS, MSCC, MSFT, MSM, MTB, MTH, MTLS, MTW, MTZ, MU, MUR, MVNR, MW, MWW, MXIM, MXL, MYL, NAV, NBHC, NBTB, NCFT, NCLH, NCS, NDAQ, NDLS, NDSN, NEOG, NFLX, NFX, NGVC, NHI, NIHD, NKE, NLSN, NMBL, NOC, NOV, NPBC, NTAP, NTSC, NUAN, NUE, NUS, NUVA, NVDA, NVE, NVGS, NVRO, NWL, OA, OAS, OLED, OLN, OMC, OMED, OMI, ONNN, OPHT, OPWR, ORCL, OSIS, OUT, OUTR, OVTI, OXY, P, PACW, PAHC, PANW, PAY, PAYC, PAYX, PBI, PBPB, PCAR, PCLN, PCP, PDCO, PE, PEGI, PEP, PETM, PF, PFE, PFMT, PG, PGEM, PH, PII, PKG, PKI, PLCE, PLCM, PLL, PM, PNK, PNR, PNRA, POL, POST, POT, PPG, PQ, PRAH, PRGO, PSMI, PSMT, PSX, PTC, PVH, PX, PXD, PZZA, Q, QCOM, QLYS, QSFT, RAD, RAX, RBC, RBGPF, RBN, RDS.A, REV, RGLS, RGP, RH, RHT, RIG, RKUS, RL, RNG, ROC, ROLL, ROP, ROSE, ROST, RPAI, RPM, RRC, RRGB, RS, RSH, RSPP, RUBI, RVBD, RWLK, S, SABR, SAFM, SALE, SAM, SAP, SAVE, SBGI, SBUX, SC, SCAI, SCCO, SCHN, SCI, SCS, SCTY, SD, SDRL, SE, SEAS, SEE, SERV, SF, SFD, SFLY, SFM, SFS, SGMS, SHAK, SHAW, SHLD, SHLM, SHPG, SHW, SIAL, SIX, SJM, SKS, SKUL, SLB, SLXP, SMLP, SN, SNDK, SNPS, SNX, SO, SODA, SON, SONC, SPLK, SPLS, SPRD, SPTN, SPW, SPWH, SRC, SRPT, SSNI, SSNLF, SSTK, SSYS, ST, STAY, STBFY, STCK, STI, STJ, STL, STMP, STT, STX, STZ, SVU, SWFT, SWHC, SWM, SXE, SXI, SYF, SYK, SYMC, SYNA, SYY, T, TAM, TAP, TCPI, TCS, TDY, TEG, TEL, TESO, TEVA, TEX, TFM, TGT, THC, THO, THRD, THRX, THS, TIBX, TIF, TISI, TJX, TMK, TMO, TMUS, TNDM, TNET, TOL, TPH, TPX, TRAK, TREC, TRMB, TRN, TRNX, TRW, TSCO, TSLA, TSO, TTC, TVPT, TWC, TWOU, TWTR, TXN, TXT, TXTR, TZOO, UA, UBNT, ULTA, UMPQ, UNFI, UNH, UNP, UNS, UPL, UPLD, UPS, URBN, USB, UTX, V, VA, VAL, VALE, VAR, VCR, VCYT, VDSI, VEEV, VIA, VIAB, VLO, VLTR, VMC, VMEM, VMI, VMW, VNCE, VNR, VOD, VOYA, VRA, VRNS, VRNT, VRS, VRX, VSEC, VSLR, VWR, VZ, W, WBA, WBMD, WBSN, WCN, WDAY, WDC, WDFC, WEC, WEX, WFC, WFM, WGO, WHR, WINN, WLB, WLH, WLK, WLL, WMS-OLD, WMT, WOR, WSM, WSTC, WTS, WTW, WWAV, WWWW, WYNN, X, XCO, XCRA, XEC, XLRN, XOM, XON, XONE, XOOM, XPO, XRAY, YDLE, YELP, YHOO, YUM, YUME, Z, ZEN, ZEP, ZION, ZLC, ZMH, ZNGA, ZOES, ZOLT, ZTS, ZU, ZUMZ
  • ConocoPhillips - Dividend Is Safe, For Now
    Tue, Feb. 3 COP 25 Comments

    Summary

    • ConocoPhillips has pledged that dividends are priority number one.
    • At the same time, cash flow neutrality should be achieved by 2017.
    • Currently I estimate a cash flow shortfall of $6 billion per year at current levels, despite a renewed cutback in capital spending.
    • Unless oil prices recover significantly this year, something will have to give at some point in 2016.
  • Ingredion Has All The Ingredients For Long-Term Returns
    Tue, Feb. 3 INGR 1 Comment

    Summary

    • Ingredion posts disappointing results on the back of pricing and adverse currencies moves, both factors being largely outside of the company's control.
    • Underlying volume growth remains solid, as the long-term growth potential remains following the strategic focus on specialty ingredients.
    • A fairly cheap valuation combined with smart dealmaking, long-term growth and shareholder payouts make shares appealing in my eyes.
  • Swift Transportation - Above-Average Risk Requires A Bigger Margin Of Safety
    Sat, Jan. 31 SWFT 3 Comments

    Summary

    • Swift Transportation reports solid results, and issues a comforting outlook for 2015.
    • Shares fall as the company does warn on tightness on the market for truck drivers, creating potential risks to margins later in 2015.
    • Given the leverage employed, a 15 times forward non-GAAP multiple seems fair enough.
    • Investors should remember that Swift is not comparable to UPS or FedEx, as it has more cyclical and leverage exposure.
  • Gentex - Appeal Continues, Despite A Softer Quarter
    Fri, Jan. 30 GNTX 2 Comments

    Summary

    • Gentex reports soft results, with sales hurt by the strong dollar and inventory de-stocking.
    • 2015 will see solid growth, although analysts have hoped for more.
    • The strong product portfolio, continued growth, strong balance sheet and fair valuation all drive appeal.
  • Varian Medical - Great Growth Prospects At A Fair Price
    Fri, Jan. 30 VAR Comment!

    Summary

    • Varian Medical reports solid results and maintains its outlook, despite severe currency headwinds.
    • This just shows that the business is performing very well on an operational basis.
    • The company operates well in long-term growing markets, which, combined with a relatively contained valuation, offers appeal.
    • Promising proton therapy developments can only provide long-term icing on the cake.
  • BOK Financial - Track Record And Dividend Yield Outweigh Energy Exposure Concerns
    Fri, Jan. 30 BOKF Comment!

    Summary

    • BOK Financial reports disappointing results with earnings being hurt by mark-to-market fluctuations in mortgage servicing rights.
    • The bank reports solid loan and deposit growth, and has an excellent long-term track record and dividend yield.
    • Shares have plunged by a fifth in recent months on worries about falling interest margins as well as the large exposure to the energy sector.
    • Despite the concerns about the energy exposure, I believe the risk management and allowances are solid enough to make it through the current turmoil.
  • Parker Hannifin - True Dividend Aristocrat At A Nice Price
    Fri, Jan. 30 PH 14 Comments

    Summary

    • Parker Hannifin posted relatively solid results as organic growth offset currency headwinds.
    • The company has an amazing dividend track record with the yield currently coming in at 2%, while trading at an attractive price.
    • The long-term performance, stability and prospects make shares attractive.
  • Praxair - Look Beyond The Currency Impact To Steady Growth And Stable Margins
    Fri, Jan. 30 PX 2 Comments

    Summary

    • Praxair reports soft results driven by one-time items and currency headwinds.
    • Currency headwinds will continue to be the theme of 2015, as 50% of sales are being generated abroad.
    • Relative stability, solid margins, steady growth and a fair dividend yield make shares a preferential investment compared to many bonds.
  • Zions Bancorp - Soft Earnings Add To Worries, Tangible Book Value Provides Support
    Thu, Jan. 29 ZION Comment!

    Summary

    • Zions' earnings are disappointing as the company is no longer releasing loan loss provisions.
    • This combined with worries about energy loan exposure and below-average profitability is causing anxiety among investors.
    • After a difficult year, shares now trade below the tangible book value.
    • This should provide support for shares at current levels, as investors can await better days.
  • W.W. Grainger - Add This Excellent Operator With Solid Prospects On Dips
    Thu, Jan. 29 GWW 6 Comments

    Summary

    • W.W. Grainger has seen a modest correction after releasing soft results and cutting the 2015 outlook.
    • The company is facing pressure from dollar strength, a weak Canadian economy and currency, as well as slower international growth.
    • The valuation remains appealing, as the company pays out a fair dividend and operates with a solid balance sheet, as future growth opportunities remain abundant.
  • Roper Industries - Excellent Operator, More Than Fairly Valued
    Wed, Jan. 28 ROP 1 Comment

    Summary

    • Roper Industries reports results which meet expectations, and issues a comforting outlook.
    • The company continues to operate with great operational excellence, delivering solid organic growth and superior margins.
    • Despite the great results I am fairly cautious following elevated earnings multiples and a lack of compelling risk-reward opportunity at current levels.
  • M&T Bank - A Neutral Stance After Weighing The Pros And Cons
    Tue, Jan. 27 MTB 1 Comment

    Summary

    • M&T Bank delivers solid results with revenues being pressured by compression in net interest margins.
    • The company anticipates some headwinds on this front in 2015, as pending deal uncertainty creates additional headwinds.
    • This is offset by strong historical growth and solid operational loan growth, which is already applauded by a premium valuation.
    • Weighing the pros and cons, I am fairly neutral on the prospects for the shares.
  • Hexcel: Long-Term Guidance Offers Support And Appeal
    Tue, Jan. 27 HXL Comment!

    Summary

    • Hexcel's shares rise to new highs following solid results, and a promising multi-year outlook.
    • I like the shares given the high visibility of the business and significant anticipated earnings improvements.
    • This makes shares worthwhile at dips despite a premium valuation on current earnings.
  • Alaska Airlines - Momentum Run Continues, But I Am Cautious
    Tue, Jan. 27 ALK 5 Comments

    Summary

    • Alaska Airlines ends 2014 on a strong note.
    • Solid growth, high earnings and moderate multiples appear to create a nice opportunity.
    • The shares have already reflected a great deal of good news in recent months and years.
    • Little competition and low oil prices create fat margins now, something which I do not anticipate will be sustainable.
    • While I am very optimistic about the long-term potential of the company, I am only a buyer on significant dips following the momentum run seen already.
  • Huntington Bancshares - After A Relatively Strong Quarter, The Bank Is Fairly Valued
    Tue, Jan. 27 HBAN 1 Comment

    Summary

    • Huntington shows relatively strong growth, with past growth being aided by dealmaking.
    • Shares have recovered in recent years, now trading at a premium to their book value on hopes for strong returns on equity.
    • While this appears attractive, I am not too impressed with the bank. Long-term shareholders have still suffered a lot following disastrous dilution during the financial crisis.
    • Given the fairly aggressive strategy of the bank to grow the business I am worried about the performance of the bank in a future recession.
  • Kansas City Southern - Great Growth And Potential, Wait For A Better Entry Level
    Tue, Jan. 27 KSU Comment!

    Summary

    • Kansas City Southern reports relatively soft fourth quarter results.
    • The railroad has grown revenues and earnings at an aggressive pace in recent years.
    • While the prospects for future growth remain great, a lot of good news has already been priced into the shares.
    • For these reasons I am only a buyer on significant dips going forwards.
  • Rockwell Collins: Great Long-Term Investment; Wait For A Pullback
    Mon, Jan. 26 COL Comment!

    Summary

    • Rockwell Collins reports solid first-quarter results.
    • The company benefits from the retro-active extension of R&D tax credits.
    • Shares offer long-term appeal. Despite this, I would be cautious to buy shares at current levels.
    • Recent momentum amidst a strengthening dollar is the main reason for the caution.
  • BB&T - Despite Solid Deals Appeal Is Limited Unless Interest Rates Start To Rise
    Mon, Jan. 26 BBT Comment!

    Summary

    • BB&T reports solid results, driven by cost savings and modest compression in net interest margins.
    • The bank is focusing on growth again after it made a few important deals in 2014.
    • Shares trade at a modest premium now, raising expectations.
    • I feel appeal only becomes apparent in case net interest margins start to increase again.
  • Kimberly-Clark - Lots Of Headwinds, Dividend Provides Support
    Mon, Jan. 26 KMB 4 Comments

    Summary

    • Kimberly-Clark reports soft results, and issues a disappointing 2015 outlook.
    • The strong dollar hurts the business a great deal, while Huggies faces a lot of pressure at home.
    • While the valuation is very high, I continue to believe shares will be supported by the world-class dividend.
    • The 3.0% dividend yield, with a further dividend hikes anticipated in 2015, looks attractive given the low interest rates.
  • SanDisk - More Weakness Ahead, Don't Pull The Buy Trigger Yet
    Sat, Jan. 24 SNDK 22 Comments

    Summary

    • SanDisk reports very soft fourth quarter results, as has been pre-announced.
    • The weakness is now seen for the current quarter and for 2015 as well.
    • Investors therefore took another hit, after shares have lost 25% of their value in just a month's time.
    • With more pain anticipated in the coming year, I think it is still too early to buy into the shares now.
  • eBay - Mixed Results And News Show, Shareholder Value Creation Is Uncertain
    Sat, Jan. 24 EBAY 1 Comment

    Summary

    • eBay's results were solid, as the outlook is weak driven by the headwinds resulting from dollar strength and weakness at the marketplace business.
    • PayPal continues to perform well, as the company is cutting costs and aiming to sell the enterprise business unit.
    • I like the orientation on shareholder value creation, although I am uncertain how much value can really be created for shareholders.
  • Fifth Third Bancorp - Little Long-Term Appeal, Even At Book Value
    Fri, Jan. 23 FITB 1 Comment

    Summary

    • Fifth Third Bank suffers like the rest of the sector from narrowing interest margins.
    • Unlike many competitors the cost of deposits is creeping up, so are loan loss provisions.
    • The average performance and poor track record in risk management, makes me cautious despite the fact that shares trade at their book value.
  • U.S. Bancorp - Best-Of-Breed, Long-Term Value Creator
    Thu, Jan. 22 USB 4 Comments

    Summary

    • U.S. Bancorp has reported solid earnings, as net interest margin compression was not as bad as was feared.
    • The bank is an excellent operator and a great risk manager.
    • This values shares at a big premium compared to the book value, unlike the vast majority of its peers.
    • Given the strong performance and cash flows returned to investors, I would prefer the bank over any peer.
    • That said, the shares are no screaming buy at all, although they could still be held in the long run.
  • Baker Hughes - Strong Quarter, Reconfirms Solid Risk/Reward Opportunity
    Thu, Jan. 22 BHI Comment!

    Summary

    • Baker Hughes ends 2014 on a very strong note.
    • 2015 looks to become a difficult year, with US rig count expected to drop 15% on a sequential basis.
    • The strong execution, pro-active job cuts and potential huge break-up fee limit the downside in case the Halliburton deal falls apart, while upside remains.
  • Cree - Optimistic Undertone Is Supportive For The Shares
    Thu, Jan. 22 CREE 7 Comments

    Summary

    • Cree reported a small earnings beat on low expectations.
    • A cautious optimistic undertone, somewhat comforting outlook and share buybacks create enthusiasm among investors.
    • A long term investment can pay off given the industry growth; just realize that an investment carries above-average risks.
  • Jarden: Premium Valuation And Leverage Limits Appeal
    Thu, Jan. 22 JAH 7 Comments

    Summary

    • Jarden reports strong preliminary results for the final quarter of 2014.
    • While the strong historical growth is attractive, the acquisition trajectory has resulted in high leverage.
    • Given the premium valuation following the multi-year run up, the leverage and lack of dividends, I would not touch shares at these levels.
  • Lennar - Another Homebuilder To Warn About The Housing Recovery In 2015
    Wed, Jan. 21 LEN Comment!

    Summary

    • Lennar posts solid results for the fourth quarter of 2014.
    • These results were aided by higher purchase incentives, as the company warns for its gross margins in 2015 after competitor KB Home did the same thing.
    • Following aggressive inventory lots built up, the company has essentially used its balance sheet to bet on the housing recovery.
    • Given the leverage employed and dire consequences of a housing downturn, I continue to shun investing in the housing sector and Lennar.
  • Comerica - Worries About Texas And Long Interest Exposure Creates Long Term Opportunities
    Wed, Jan. 21 CMA 1 Comment

    Summary

    • Comerica reports fourth quarter results which are in line with expectations.
    • The bank which has significant operations in Texas does not see a big impact from falling oil prices, reassuring investors.
    • A return to higher net interest margins and higher dividend payouts could improve the valuation of the stock which only trades at its book value.
    • Don't expect a quick rebound amidst narrowing net interest margins and still low dividend payouts.
  • Smith & Wesson: A Large Jump Following A Modest Guidance Hike
    Wed, Jan. 21 SWHC 2 Comments

    Summary

    • Smith & Wesson surprises the market by raising its full year guidance.
    • The raise in the guidance mostly reflects on the current third quarter, with the fourth quarter guidance being relatively untouched.
    • Given the big jump in the shares, the fair valuation multiples and high usage of debt, I am cautious and will stay neutral at current levels.
  • Goldman Sachs - Transformation Efforts Should Be Awarded In The Long Run
    Wed, Jan. 21 GS 1 Comment

    Summary

    • Goldman's revenues take a hit across the board.
    • The strong cost control and shareholder returns limit the fall in earnings per share.
    • The bank becomes less risky, focusing on less volatile and less capital intensive businesses.
    • This could result in a re-rating of the stock in the long term as the market starts to award this shift.
  • SunTrust Banks - Solid Results, Few Triggers Ahead
    Wed, Jan. 21 STI Comment!

    Summary

    • SunTrust reports solid earnings results, driven by strong cost control.
    • Narrowing net interest margins are offset by loan growth, resulting in flattish revenues.
    • Despite fair multiples, I am neutral on the shares as I see few triggers ahead.
  • PPG Industries: Caution As All The Good News Has Already Been Priced In
    Wed, Jan. 21 PPG 1 Comment

    Summary

    • PPG continues to show solid growth, partially masked by a stronger dollar.
    • Lower oil prices and a focused strategy allows for higher margins going forwards.
    • Shares have already priced in all the good news, and some more.