Friday, April 24, 2015

Weatherford: Disappointment Returns


Summary

  • Weatherford reports Q1 2015 results that disappoint.
  • The oilfield services firm is losing market share during the downturn.
  • Investors should use the stock rally to unload the stock.
When the oil price started collapsing, Weatherford International (NYSE:WFT) was one of the first stocks dumped from my portfolio. The portfolio wasn't even concentrated with energy stocks in the first place due to the distant fourth oilfield services firm having a history of disappointing the market. Weatherford had recently produced solid results during Q4, but it didn't seem like the stock to own in a weak market.

Read the full article on Seeking Alpha.


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




Wednesday, April 22, 2015

Amazing Numbers From Delta Air Lines


Summary

  • Delta Air Lines reported Q1'15 earnings that beat the estimates despite losses associated with fuel hedges.
  • The airline continues to face more headwinds than perceived by a market only focused on lower market fuel costs.
  • Delta continues to trade at valuation multiples substantially below other companies.
While currency headwinds and a few fare wars grab market attention, airlines like Delta Air Lines (NYSE:DAL) continue to report exceptional numbers. The market appears more concerned with the potential for rebounding fuel costs than the exceptional value presented by the stock.

Read the full article at Seeking Alpha.


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




Saturday, April 18, 2015

American Express: Profits Continue Flowing


Summary

  • American Express reported Q115 earnings that easily surpassed analyst estimates.
  • The company continues producing solid profits and returning capital to shareholders.
  • The stock is expensive considering the lack of growth, but the situation is hardly dour.
Despite troubling headwinds, the profits at American Express (NYSE:AXP) continue flowing. The future of the premium credit card network doesn't appear nearly as dour as predicted by headlines following recent well-publicized customer defections.

Read the full article on Seeking Alpha.


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




Thursday, April 16, 2015

Bank Of America: Don't Over-Analyze Results


Summary

  • Bank of America reported disappointing Q1'15 results.
  • The bank remains a highly rate sensitive play, suggesting investors shouldn't over-analyze quarterly results due to declining rates.
  • Due to cost management and a cheap value, Bank of America remains an attractive pick.
With the Q1'15 earnings release at Bank of America (NYSE:BAC), a lot analysts will analyze every detail to the max. The stock is trading slightly down on the results as investors are disappointed with the numbers, especially on the revenue side. The real question is whether investors should compare the results to analyst expectations or focus more on the large quarterly profits for a stock with a market valuation of $166 billion.

Read the full article on Seeking Alpha.


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




Saturday, April 11, 2015

Lorillard: Time To Exit


Summary

  • Lorillard and Reynolds American merger approaches FTC decision.
  • Lorillard hit new highs over $70 this week.
  • With a high PE multiple, the downside risk appears to far outweigh any benefits from holding the stock to collect the merger discount.
After years of owning Lorillard (NYSE:LO) and benefiting from high dividends and stock buybacks, the recent stock action presented the opportunity to exit the stock. In addition, the current stock price faces risks from any issues with the Federal Trade Commission blocking the Reynolds American (NYSE:RAI) merger or requiring further divestitures beyond those already proposed in the transaction.


Read the full article on Seeking Alpha.


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




Is ConocoPhillips Ramping Up Production?


Summary

  • ConocoPhillips announced a big shift in capital spending from large-scale projects to short-cycle projects.
  • The company continues to maintain capital spending at around $11.5 billion established back in January that will keep production growth in the 2% to 3% range.
  • The biggest concern is that ramped up domestic production could face pricing pressure with the inability to obtain export to international markets.
  • Stock remains expensive, potentially propped up by a large 4.4% dividend yield.
In a surprise move, ConocoPhillips (NYSE:COP) announced at the annual Analyst and Investor meeting that the energy producer was shifting capital spending to domestic shale areas. The company had previously announced plans to cut spending from domestic unconventional areas (see ConocoPhillips: Key Takeaways From Guidance) and the general market mindset was that these areas offered a lower return due to higher costs and lower production.

Read the full article on Seeking Alpha.


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




Thursday, April 9, 2015

Habit Restaurants: Buy This Dip


Summary

  • Habit Restaurants surprises analysts with strong comps.
  • The company filed for selling shareholders to unload roughly 22% of outstanding shares.
  • The combination of the news provides an ideal time to buy a premier restaurant concept.
After the close on Tuesday, Habit Restaurants (NASDAQ:HABT) released a couple of items that make investing in recent IPO stocks very unpredictable. Smashing conservative guidance while at the same time launching a secondary offering will likely leave the stock spinning in place for some time. The fast casual burger joint has traded mostly flat after the initial IPO hype wore off and investors question the valuation.

Read the full article at Seeking Alpha. 


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