Thursday, August 27, 2015

Avago: Business As Usual


  • Avago provided generally bullish commentary on the business environment including China.
  • The actual news didn't warrant the $50 collapse seen in the stock before the recent rally.
  • The stock is exceptionally cheap even with the merger synergies with Broadcom.
The recent collapse in the stock of Avago (NASDAQ:AVGO) would suggest something other than consistent end-user demand. The semiconductor company provides a great view into general demand in the wireless handset and enterprise storage markets with a quarter that ends in July. Not to mention, the guidance factors in actual August demand form a better picture of the market than an email from Tim Cook regarding one particular handset provider for the premium market.

Read the full article on Seeking Alpha.


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


                     

Monday, August 24, 2015

Apple: Best Tasting Bear Ever?


  • Apple trades down to correction territory with a loss in excess of 20%.
  • The data points don't suggest Apple has any growth problems in China.
  • With an enterprise value drop of nearly 30%, Apple is extremely tasty at below 9x EPS estimates.
The big shock in the market selloff is that Apple (NASDAQ:AAPL) had already reached bear market territory before the dramatic selloff at the open on Monday. Like other tech stocks, Apple has been hard hit by fears of a slowdown in China. The reality though suggests that the fears are overblown making the stock collapse perplexing.

Read the full article on Seeking Alpha.


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



Thursday, August 20, 2015

Ambarella: Too Much Drone Hype


  • Ambarella maintains a lofty valuation due to the potential for drones.
  • The excitement over the drone market doesn't match the potential near-term revenue.
  • Ambarella remains a good company with a stretched valuation that offers limited upside for investors.
Prior to the recent selloff in Ambarella (NASDAQ:AMBA), the market had gotten extremely excited over the potential of drones. The maker of high powered, video compression chips has been on fire over the last couple of years on the initial connection with GoPro (NASDAQ:GPRO) cameras and now drones.

Read the full article on Seeking Alpha.


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



Wednesday, August 19, 2015

NXP Semi: Another Gift Opportunity


  • NXP Semi has dipped back to recent lows following a major rally on the Freescale Semi deal.
  • The merger places the new entity as a leader in the growing connected car segment that provides a major growth catalyst with the recent hacking scandals.
  • The stock is decidedly cheap based on the benefits of the merger that is heading towards completion.
The weak stock market is providing opportunities to buy quality names at discounted prices. One such name is NXP Semiconductors (NASDAQ:NXPI) that helped spook the market with discussions of a reduction in order visibility when reporting Q2 numbers.

Read the full article on Seeking Alpha.


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




Monday, August 17, 2015

King Digital: Be Patient


  • King Digital continues to struggle to repeat the success of mega-hit Candy Crush Saga.
  • Though the stock offers an attractive value, it isn't likely to traded positively until the negative trends reverse.
  • Investors should patiently watch the stock for a better entry point and ignore the market that value doesn't exist in the mobile-game sector.
The mobile game industry continues to get a bad rap. The latest quarterly results from King Digital Entertainment (NYSE:KING) only seem to enhance that negative perception. What the market really misses is that stocks like King Digital and Zynga (NASDAQ:ZNGA) went public after a hit game or two spurred incredibly high valuations and revenues that weren't sustainable in the short run.

Read the full article on Seeking Alpha.


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




Saturday, August 15, 2015

Hartford Doesn't Need A Buyout


  • Hartford is too cheap to accept a buyout with a limited premium.
  • The consistent earnings profile and huge capital return plan position shareholders for solid returns going forward.
  • The recommendation remains to own Hartford based on value.
With an intra-day spike to near $51 on high volumes, The Hartford (NYSE:HIG) is under accumulation based on rumors of a buyout offer. Back when Chubb Corporation (NYSE:CB) accepted a buyout offer, Hartford was listed as a prime buyout target in the P&C space so this shouldn't be a big surprise.

Read the full article on Seeking Alpha.


Disclosure: Long HIG. Please read the disclaimer page for more details. 




Friday, August 14, 2015

Is Yelp Worth $100?

Gil Simon of Apex Capital predicts that Yelp (YELP) eventually plays out like Netflix (NFLX). The recent collapse mirrors the one like Netflix back in 2012. With the premium platform and content, Gil sees a significant rise for Yelp.




The video cuts off, but he reportedly suggested a significant rise in Yelp similar to the Netflix rally. Netflix has rallied from under $10 to over $120 now. It sounds like a ride to $100 would be only the start.


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