3 Numbers to Remember as Yelp Crashes Back to Earth

The fundamentals of a company aren't always represented in the corresponding stock price and, vice versa, the stock price isn't always reflective of a company's true value. In the case of Yelp (NYSE: YELP  ) , the company has been firing on all cylinders, generating fast growth and expanding internationally. The stock, however, continues to experience extreme volatility, with price swings of more than 5% in both directions. Lately though, the stock has declined 20% after large gains earlier in the year.

Yelp competes in the heavily competitive online consumer review market and is attempting to grab the $133 billion spent on local advertising, particularly the $7 billion spent on Yellow Pages. It competes against other online companies such as Angie's List (NASDAQ: ANGI  ) and Facebook (NASDAQ: FB  ) for a share of not only Yellow Pages spending, but billions of other ad dollars spent on local avenues like television, billboards, and newspapers.

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

3 GSV Capital Numbers You Shouldn't Miss

For investors that only read the earnings headlines, a ton of additional information can usually be gleaned from the related conference calls. The recent earnings call for GSV Capital (NASDAQ: GSVC) provided some interesting nuggets regarding Twitter (NYSE: TWTR) and the general IPO market.


GSV Capital is a publicly traded investment fund still going through its early stages, with investments in venture-backed private companies only now developing into public firms on a constant basis. The fund provides the small investor access to pre-IPO stocks where a Twitter stake can be obtained at a lower cost than the IPO price. Unfortunately, the positions also come with a high management cost and still unpredictable results. Chegg's recent IPO could provide more insight into whether the education technology theme plays out better than the initial trading of Violin Memory (NYSE: VMEM).

Read the full article here.


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

Cleared For Takeoff

Interesting video from American Airlines (AAMRQ) uploaded to YouTube saying the merger is "cleared for takeoff".





Anybody following this blog knows that Stone Fox Capital has been bullish on this merger with an investment in US Airways (LCC). As the largest airline in the world, the new American Airlines Group (LCC) should eventually claim the largest valuation as well.



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

Seadrill Dividend Hike: Will the Stock Price Follow?

Seadrill Limited (NYSE: SDRL  ) plunged over 6% when the company announced a quarterly dividend hike by $0.04 to $0.95, or 4.3%. Typically a dividend hike is greeted with positive stock returns, but in this case investors appear more concerned by other issues in the sector.

Seadrill is a global leader in offshore drilling with a fleet of modern, high-specification rigs. The company is a serial deal maker with a 77.5% ownership of Seadrill Partners (NYSE: SDLP  ) and a recent deal to acquire the majority of Sevan Drilling. The addition of Sevan during the quarter added operating costs that reduced the bottom line.

Read the full article here.


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

More Delays at Glue Mobile Sabotage a Great Deer Hunt

Glu Mobile (NASDAQ: GLUU  ) shares were absolutely clobbered after the third-quarter earnings report that easily beat estimates. On top of the beat, the mobile game developer increased guidance for the fourth quarter that would typically send a stock soaring. Why was the market so unforgiving this time?

The issue with Glu Mobile was twofold. The first issue was that investors had hyped up the release to the extent of expecting unreasonable guidance for the fourth quarter. The second issue and probably most concerning was the unexpected delay in the release of several titles forecasted to contribute highly to fourth-quarter numbers.

Read the full article here.


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

Silver Bay Realty Growing NAV Despite High Expense Levels

Investors still aren't convinced that the single-family rental house market provides an investable opportunity, and for good reason. The cost for a corporation to build up a portfolio of rental houses, renovate them, and lease the properties continues to be expensive. Missed by the focus on cash flows, Silver Bay Realty Trust (NYSE: SBY  ) continues to grow its net asset value (NAV) by seeing the valuation of its houses rebound. Fellow rental property owner American Homes 4 Rent (NYSE: AMH  ) has seen similar stock weakness.

Read the full article here.


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

3 Takeaways From Helmerich & Payne's Earnings

For investors who only read the earnings headlines, a ton of additional information can usually be gleaned by reading the details of the earnings report and comparing to competitors. For investors interested in the domestic land-drilling market, Helmerich & Payne (NYSE: HP  ) happens to be one of the better providers of useful numbers.

The driller had some encouraging signs on new rig orders and increasing rig revenue per day, but the numbers show more stability than growth. As with Patterson-UTI Energy (NASDAQ: PTEN  ) and Nabors Industries (NYSE: NBR  ) , the troubling sign continues to be that customers want the new rigs at the expense of idled rigs.

Read the full article here.


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