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  • Bio-Reference Labs (BRLI -0.6%) slips on a negative article from short-seller The Street Sweeper. The gist of the article says that the company is likely to be faced with a flood of denials from some of the largest health insurance companies in the country, and that growth projections are overly optimistic. [View news story]
    BRLI's broad geographic coverage and focus on difficult lab solutions differentiates them from most other labs. Their growth outlook, in my opinion, is promising, and the valuation, low.
    Taking the advice of short sellers is usually counterproductive.
    Feb 27 04:28 PM | Likes Like |Link to Comment
  • This morning's spike in shares of Westport Innovations (WPRT +7.6%) on takeover speculation gains momentum into the close. Chatter centers around potential interest from Cummins (CMI +0.3%), already involved in a JV that accounts for much of WPRT's medium-term profits. [View news story]
    Westport has a broader line of nat gas engines than does Cummins and has close ties with several OEMs. They are already joined at the hip and Cummins can easily afford to make it 100 percent, benefiting shareholders of both companies.
    Feb 15 04:10 PM | 4 Likes Like |Link to Comment
  • The Street showed no mercy to Nuance (NUAN -18.5%) in response to its EPS miss and forecast for multiple quarters of weakness in healthcare and EMEA sales. Goldman thinks Nuance's goal of $1B in FY13 healthcare sales is now at risk, and Needham (downgrading to Hold) is concerned about guidance for a 200-250 bps FY13 gross margin drop, worse than a prior forecast. Management suggested on the earnings call it's counting on clinical documentation software sales and PC/mobile OEM deals to drive future growth. [View news story]
    When NUAN fell more than eighteen percent, it more than took into account the outlook for the company, reflecting the fragile psychology of traders in this market. It is still the same company, dominant in its field and with a bright long term future.
    Feb 9 10:39 AM | 2 Likes Like |Link to Comment
  • Can Xerox Be Liked Again By Investors? [View article]
    Patience is not a prominent feature of the current market, and XRX may suffer from that characteristic for a long time. When long term investment was popular, XRX would have been doing much better in the market. As it is, the company is not part of the casino.
    Dec 18 02:37 PM | Likes Like |Link to Comment
  • Diamond Foods (DMND): FQ1 EPS of $0.24 beats by $0.01. Revenue of $258.5M (-10.5% Y/Y) misses by $16M. Shares +2.1% AH. (PR[View news story]
    DMND is all about the odds of whether the company can revive its past successes based its attractive brands. The earnings report suggests that the company will have the opportunity to do that. If, as I think, the brands have considerable upside potential, the stock is a sound value at the current price.
    Dec 17 04:54 PM | Likes Like |Link to Comment
  • Topeka's Brian White says the Apple-dependent Taiwanese suppliers in his "Apple Monitor" collectively saw a 15% M/M sales increase in November. That's well above the 4% averaged over the last 7 years, something White attributes to the strength of Apple's (AAPL -0.6%) fall product refresh. The Apple uber-bull reiterates a Buy and $1,111 PT. (previous[View news story]
    The main problems for AAPL are a bad image cultivated by bears and the media, and the immense profits stored up by many investors. With capital gains tax likely to go up, holders are encouraged to sell. With the end of the year or modestly before, the tax issue will go away, and the news that AAPL sales and profits continue on a strong upward path will restore AAPL to its former highly respected position.
    Even the Jefferies downgrade was with a target price of 800 dollars!
    Dec 10 06:46 PM | Likes Like |Link to Comment
  • Molycorp (MCP +15.7%) soars, taking the rest of the rare earth sector with it (AVL +6.2%, REE +11%, REMX +1.7%). Traders describe the move as the continuation of a short squeeze in Molycorp - whose shares dropped below 6 in mid-November after being in the mid-30s 7 months earlier. Adding fuel is a report Interactive Brokers has said there is insufficient stock available for short sales. [View news story]
    Thank you, Manxbuilder, for laying out the charges against the system. You should add high frequency trading to the list, which distorts the market and hurts average investors. If regulators and Congress were capable of independent action, these abuses would have been long ago remedied.
    Dec 10 02:08 PM | 1 Like Like |Link to Comment
  • Freeport's (FCX) mega-deal for McMoRan (MMR) and Plains (PXP) looks "incestuous" to Jim Mueller: Just for starters, PXP owns 31.5% of MMR and CEO James Flores sits on its board; MMR CEO Jim Bob Moffett is chairman of FCX; B.M. Rankin, a co-founder of FCX with Moffett, sits on MMR’s board. With such a web of relationships, how much independent due diligence was done in reaching the deal? [View news story]
    The deal has a dubious smell. Somebody, tell us why it is worthwhile for FCX shareholders.
    Dec 5 05:36 PM | 2 Likes Like |Link to Comment
  • In its conference call on the purchase of McMoRan (MMR +82.2%) and Plains Exploration (PXP +26.1%), Freeport McMoRan's (FCX -13.5%) Richard Adkerson says the deal is an add-on to its mining business and not a diversion from current strategy, and FCX will continue to look for new mining opportunities. With margins and cash flows strong, FCX anticipates continuing its current dividend. [View news story]
    When a company pays the average target price for companies that are not doing well, there has to be a loss of value to the acquirer, which will hopefully be made up over the next year, but a markdown of the acquirer is called for. For patient investors, FCX is promising, but this will not be a near-term, or even medium-term winner. I would stand aside and look to buy when the timing may be more favorable.
    Dec 5 12:59 PM | 2 Likes Like |Link to Comment
  • Diamond Foods (DMND) -18.7% AH after restating results for FY10 and FY11, and reporting results for the first 3 quarters of FY12 (ended in July). Sales for the first 3 quarters totaled $757.4M (+3.5% Y/Y) and EPS amounted to $0.53, down from a restated $1.54 for the year-ago period. Gross margin fell 480 bps Y/Y to 18.1% thanks to (surprise, surprise) a drop in walnut crop deliveries and higher walnut costs. Diamond expects to report FY12 sales of $950M-$975M vs. FY11's $966.7M. Also, two board members are stepping down, and walnut grower Bill Tos is joining. [View news story]
    DMND is a case of confusing indicators. The brands have value.
    The management seems to have been reformed. Question: how can the brands be converted to net income that supports the stock price.
    In light of all that has happened to DMND, it is difficult for the average investor to estimate where the variables will end up. At this moment, it may be best to stay away.
    Nov 14 05:58 PM | Likes Like |Link to Comment
  • Cummins (CMI): Q3 EPS of $1.86 misses by $0.04. Revenue of $4.1B (-11% Y/Y) misses by $50M. (PR[View news story]
    Let's face it......we are at a trough in cyclical earnings and the stock prices reflect that fact. The question is whether this is a real trough or a fake that will give way to a lower trough. Short covering obscures what the serious market is thinking. In the end, only time will tell whether the current trough is the last one that cyclicals will have to face. I suspect that it is too early to declare the troughing over.
    Oct 31 05:16 PM | Likes Like |Link to Comment
  • Westport Innovations (WPRT) -11.3% premarket after cutting its full-year revenue forecast in a corporate update released Monday. The developer of engine and fuel systems technologies lowered guidance to $340M-$350M from prior $400M-$425M and $412M analyst consensus, citing feedback from OEM and fleet customers in North America and automotive OEM customers in Europe. [View news story]
    WPRT should not trade on quarterly results. The deal with Tata Motors announced a little while ago, along with the strong ties with other OEMs is much more an indicator of future and present value.
    Oct 31 09:46 AM | Likes Like |Link to Comment
  • 6 Business Friendly Features In iOS 6 And What They Say About The New 'Surface' Threat [View article]
    I would bet on AAPL in all of its markets, including enterprise. Microsoft has recorded a history in recent years of getting in its own way, doing too much following and not enough leading. Their terrible ad campaigns give point to their failure to generate dynamic cachet.....just the opposite of AAPL.
    Oct 29 04:22 PM | Likes Like |Link to Comment
  • More on Apple: Cash balance stood at $121.3B at end of FQ4. 4.9M Macs shipped (+1% Y/Y). iPhone (main profit engine) units +58% Y/Y and revenue +56% (up from +28% and +22% in FQ3). iPad units +26% and revenue +9%, a major slowdown partly caused by inventory changes. Mac desktop units -24%, notebooks +9%. iPod units -19% and revenue -26%. Implied iPhone ASP of $636 ($625 in FQ3), iPad ASP of $536 ($538 in FQ3). Apple has resumed trading and is down 0.9% AH - some bad news was clearly priced in. CC at 5PM ET (webcast). [View news story]
    The stock is dominated by a lot of ignorant people, many of them high speed traders who serve as parasites on the auction process. In the case of AAPL, the only smart course is to focus of the actual results of their business and on the outlook for the Christmas quarter and beyond.
    The bears have their own motives and their own tactics: the rest of us will be the ultimate beneficiaries of the AAPL juggernaut.
    Oct 25 05:29 PM | 1 Like Like |Link to Comment
  • Sterne Agee's Shaw Wu does his best to defend Apple (AAPL -0.2%) in the face of its recent selloff. Supply chain checks indicate iPhone 5 demand remains strong and production appears to be improving, though Wu thinks lead times remain fixed at 3-4 weeks. He believes a consensus for 17M-18M FQ4 (Sep. quarter) iPad sales could prove high, but argues there could be upside to FQ1 estimates thanks to the iPad Mini. (Nomura[View news story]
    There has to be a large number of short sellers in AAPL, and they are busy on line to poor mouth the company. When the current sinking spell reverses course, the stock could move up very fast. It's not the fundamentals that are hurting the stock; it's Casino.
    Oct 9 03:10 PM | 1 Like Like |Link to Comment