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Meleke Capital Management

Meleke Capital Management
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  • Tesla now +3.2% AH. Gigafactory aims to supply 500K vehicles. [View news story]
    Still will not be able to contract the lithium it needs to meet its absurd expectations
    Feb 26 08:51 PM | 1 Like Like |Link to Comment
  • The selloff in Tesla (TSLA -14.5%) gathers momentum following Goldman running the numbers and finding the stock deserves its valuation only in the best of scenarios. Volume in the shares today looks like it will end up at about 4x the average level. [View news story]
    Finally... they just scratched the surface on the sales trends.. more holes down the income statement
    Jul 16 04:19 PM | 3 Likes Like |Link to Comment
  • Live Nation - Everybody Wants To Rule The World [View article]
    I have known the author of this piece, Mr. Tim Heitman on both professional and personal levels. His analysis is amazingly insightful and I welcome him to the seeking alpha community. Look forward to reading all his upcoming pieces. Thank you Tim!
    May 5 11:50 PM | Likes Like |Link to Comment
  • Live Nation - Everybody Wants To Rule The World [View article]
    top line compression would also seem to be a less of delta on project AOI, CF sustainability sure rewards a patient investor. The guy at SYY should look at your work, classic Tim Heitman and 501 Team analysis. Thanks
    May 5 08:27 AM | Likes Like |Link to Comment
  • Ruth's Hospitality Group: 'Steak' Your Claim To A 13% Free Cash Flow Yield With Upside [View article]
    Dividend was announced Friday, great call once again Tim. Their timining on dividend comes a quarter later of your analysis. Thanks for posting
    May 5 08:27 AM | 1 Like Like |Link to Comment
  • Pfizer's (PFE) aggressive tax-avoidance schemes are under scrutiny from the SEC, which has sent the phama giant a letter asking how it was able to earn record profit abroad and losses domestically despite generating 40% of its sales in the U.S. Pfizer's trick is to park its cash in low-tax jurisdictions. [View news story]
    Obama and his cronies need to do their weekly shakedown. This week its PFE. Gotta balance the budget somehow and reduce debt. This administration MO for the last 3 years.. chicago shakedown
    Oct 8 12:43 PM | Likes Like |Link to Comment
  • FLIR Systems Outshines With Prices, Service [View article]
    Thank You for the insightful article. Here are some additional points to consider on FLIR, which often gets overlooked by market participants and may prove to be better than a Neutral stock.

    FLIR with about $200MM in free cash and no debt enables the company the financial flexibility to reward shareholders (hopefully with share repurchases) or again by making strategic small acquisitions as they have in the past. As a growth name, in this environment, it’s nice to see that FLIR’s financial profile is being managed in a prudent and conservative way. It allows investor’s the comfort to allocate money to this company and still get the growth profile to withstand volatility associated with a growth name.

    Let us also mention that FLIR is a very profitable company. Operating margins are in the high teens range and FLIR rarely leverages its expenses to get those results. In other words, FLIR does not cut its spending in order to gain leverage in margins. Some do argue that FLIR can scale back on its’ R&D spend, especially in the context of the current shaky economic and industry backdrop, to further drive margins and profitability. Given its leading cutting edge market position, technology and future growth prospects, is still critical to the company’s growth profile and management is less likely to make that decision at the expense of concentrating on maximizing shareholder return.

    FLIR being a growth company as you mentioned still tends to get discounted by the overall marketplace. FLIR shares typically tend to trade slightly above the overall market multiple in most circumstances. The company’s normalized multiple is somewhere around 16x and market participants tend to often sell shares once they eclipse a multiple around 20x. For a growth name like FLIR, that is a discount to the profitability and future growth outlook of the company.

    I see drivers going forward, including an eventual industrial rebound coming back, as industrial clients will eventually start spending again. The market is not recognizing the potential of applications for border monitoring /control applications. In addition, the application of its technologies on new, cutting edge applications such as robotic warfare and UAV’s, which need infrared technologies as a peripheral. Look for these catalysts to really drive the military side of the business, especially as we near the election cycle. I also think the market is discounting the possibility of one of the major defense companies coming in and looking to form a long term strategic partnership with FLIR and thus reducing the lumpiness of their backlog. While neutral may be a safer bet, I would lean toward to accumulating shares anytime they are trading at the market valuation.
    Jan 4 03:01 PM | Likes Like |Link to Comment