Tuesday, September 9, 2014

Staying Invested In Zynga

Summary

  • New mobile game releases continue to struggle.
  • Assets including cash prevent significant downside risks.
  • Results from other mobile games continue to suggest that brands and franchises have an inside tract to success.
 While smaller mobile game rival Glu Mobile (NASDAQ:GLUU) continues producing daily download stars, Zynga (NASDAQ:ZNGA) can't seem to catch a break. The company recently released a game into a new genre and updated a long-term winner with limited success on the daily charts.


  Read the full article at Seeking Alpha.


 Disclosure: Long ZNGA, GLUU. Please review the disclaimer page for more details.

Monday, September 8, 2014

Top 10 Net Payout Yield Stocks For September 2014


Summary

  • Top net payout yield stocks outperformed the market in August.
  • The top ten net payout yield stocks average 12.6% yields to start August.
  • CF Industries and Illinois Tool Works jumped to the top of the list with massive stock buybacks.
 This article is a continuation of a monthly series highlighting the top net payout yield (NYSE:NPY) stocks that was started back in June, 2012 (see article) and explained in August, 2012 (see article). The series highlights the best stocks for the upcoming month. Please review the original articles for more information on the NPY concept.


Read the full article at Seeking Alpha.


Disclosure: Long CTL, KSS, NLY, NOC, SDRL, TRV, WLP. Please review the disclaimer page for more details.



CenturyLink: Riding Buybacks And Video Customers Higher


Summary

  • CenturyLink continues growing high-speed Internet and video customers.
  • The company is following the path of DirecTV with strong buybacks.
  • Stock remains attractive with a net payout yield of 10%.
 The recent agreement by AT&T (NYSE:T) to purchase DirecTV (NASDAQ:DTV) for nearly $50 billion highlights a couple of trends that investors can utilize with other stocks. The obvious trend is that video customers are in high demand these days. The not so obvious trend is that stock buybacks are once again proven to be an effective tool of value creation for shareholders.


 Read the full article at Seeking Alpha.



Disclosure: Long CTL, DTV.  Please review the disclaimer page for details.

Sunday, September 7, 2014

Frontier Communications: Capital Structure Doesn't Make Sense


Summary

  • Frontier Communications has a capital structure too focused on maintaining a historical dividend.
  • High debt load causes interest expense to hit operating income.
  • Stock is reasonably valued but the large stock gains leave limited upside from these levels.
 Reviewing the recent results of Frontier Communications (NASDAQ:FTR) and the capital structure just doesn't make sense. Sure the local communications provider has stable revenues and cash flows that provide a level of opportunity, it doesn't make any sense for the company to continue paying lofty dividends while under a large debt burden.


Read the full article at Seeking Alpha.


Disclosure: No positions mentioned. Please review the disclaimer page for more details.

Friday, September 5, 2014

Update: Delta Air Lines' August '14 Traffic Report


Summary

  • Delta released disappointing August traffic numbers.
  • Stock remains a strong buy.
  • The original investment thesis anticipated hiccups from Russia and Ebola.
Delta Air Lines (NYSE:DAL) plunged on Wednesday following the release of traffic and operational numbers for August. While the numbers were at the low-end of previous guidance, the market should've already adjusted for an expected impact from the ongoing hostilities in Ukraine and the Ebola outbreak in Africa. With the expected headwinds and a stock trading sideways during the strong summer travel season, the sell-off suggests the market over reacted.

Read the full update here.


Disclosure: No positions mentioned. Please review the disclaimer page for more details. 




Monday, September 1, 2014

Sears Holdings: Cost Burdens Weigh On The Stock


Summary

  • Another quarter, another disappointment from Sears Holdings.
  • Cost pressures drove losses higher.
  • Some silver linings existed in the details of the Q2 numbers that provide opportunities for the future.
Whether good or not, Sears Holdings (NASDAQ:SHLD) finally completed a quarter where revenue wasn't the real issue at the retailer. Sure the company saw a substantial decline in sales, but the majority of that decline came from shuttering stores and spinning off Lands' End (NASDAQ:LE). Most of the headlines from the media focused on the declining revenue trends and not the real issue which is duplicate costs for the online and promotional strategies to transform the retailer.

Read the full article at Seeking Alpha.


Disclosure: Long SHLD. Please review the disclaimer page for more details. 




Seadrill: Riding The Long-Term Wave


Summary

  • Jack-up market fears overblown.
  • Consistent dividend increases provide for stable income.
  • Seadrill investors should sit back and enjoy the large dividend while waiting on capital gains.
For a market driven by assets that last over 30 years, the offshore drilling segment of the stock market is sometimes extremely focused on the short-term. Instead of focusing on the day-to-day operations and day rate cycle, investors should focus on the age of the fleet and the ability of management to adapt.


Read the full article at Seeking Alpha.


Disclosure: Long AAPL. Please review the disclaimer page for more details.