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. 




Zoes Kitchen: Son Of Chipotle?

Guess this was missed from a few weeks back, but Cramer did an interesting analysis of Zoes Kitchen (ZOES) compared to Chipotle Mexican Grill (CMG) back when it went public. Agree with Cramer that Chipotle will never be matched, but if anybody has a chance of reaching half the size of Chipotle it would be Zoes that grew revenue 54% during Q2. Its worth watching for those interested in the concept.





With roughly 130 stores, Zoes has a long runway to hit what is probably a floor of 1,600 units.


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







Friday, August 29, 2014

Sobering News For Clean Energy Fuels


Summary

  • More evidence of a slow shift to natural gas as a transportation fuel for trucks.
  • WSJ uncovered some unexpected roadblocks to the switch to natural gas.
  • Clean Energy Fuels continues to face an uphill climb.
The shift to natural gas fueled trucks has taken a lot longer than most expected causing the stock of Clean Energy Fuels (NASDAQ:CLNE) to become a hotly debated topic. The sector soared to highs back in early 2012, but it eventually plunged to new lows when the market forecasts for growth were never met.

Read the full article here.


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



Thursday, August 7, 2014

Incredible Takeaways From Delta Air Lines Earnings


Summary

  • Travel fears with limited long-term impact have hit airline shares.
  • Operating margins, new airplanes, and refinery success provide Delta Air Lines with an attractive stock price.
  • Investors should continue holding Delta stock until it reaches a market multiple.
When reviewing the stock gains of Delta Air Lines (NYSE:DAL) over the last two years, one probably questions whether it is too late to invest in this airline or the sector in general. The stock has seen phenomenal gains, yet it still trades at an appalling low multiple of earnings. The recently reported second-quarter earnings were chock full of numbers that suggest the stock has a much longer runway for improving the bottom line.

Read the full article at Seeking Alpha.


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



Update: CenturyLink Q2 '14 Earnings


Summary

  • CenturyLink reported Q2 '14 earnings.
  • Solid results back opinion that investors should continue owning the stock.
  • Research anticipated that results would be unexciting, but strong enough to produce returns for shareholders.

Read the full update on Seeking Alpha. 


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


         

Update: Jack In The Box Q3 '14 Earnings


Summary

  • Jack in the Box reported Q3 '14 earnings.
  • The recommendation remains that the concept is attractive, but the valuation is rich.
  • The strong turnaround of the Qdoba concept was not anticipated.         
Read the full update at Seeking Alpha. 


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



Update: Demandware Q2 '14 Earnings


Summary

  • Demandware reported Q2 '14 earnings.
  • Solid earnings continue to suggest that the stock is a buy in the low $50s.
  • Original research suggested the company would see an acceleration in revenue, making the stock attractive.         

Read the full update at Seeking Alpha. 


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