Saturday, December 3, 2016

FinTech - Improved Regulatory Environment Is Bullish

Trump hasn't even taken office yet and the Federal regulators are already proposing regulations that will make it more efficient for FinTechs to operate. The Office of the Comptroller of the Currency proposed allowing FinTech firms to obtain a national bank charter.

Wednesday, November 23, 2016

Why Freeport-McMoRan Isn't Expensive Even Above $20

Copper prices have rocketed above even the targets used in the copper miners' presentations.
Freeport-McMoRan is highly cash flow positive at copper prices around $2.50 pound.
The stock offers interesting value even after the huge surge in the stock price.
The recent copper rally apparently caught most investors and analysts off guard. Analysts are either scrambling to upgrade the stock or discredit the rally.
The long misunderstood story with Freeport-McMoRan (NYSE:FCX) was that the copper miner needed higher prices in order to clear the debt issues. In reality, the current copper prices might be enough for the company to thrive. The question now is when to lock in gains.
Read the full article on Seeking Alpha.

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

Tuesday, November 8, 2016

Allergan: One Impressive Plan

Allergan recently missed Q3 estimates that should mostly be ignored.
The growth pharma has a huge capital return plan that overrides current earnings weakness.
The net payout yield will push into one of the top yields in the current market.
Allergan (NYSE:AGN) hit our radar screen due to the combination of two key signals: plunging stock price and massive capital return plans. The market typically runs away from a stock at the wrong time and these contrary positions can signal the market has the situation wrong.
The stock closed last week around multi-year lows of $195. With politicians increasingly attacking drug pricing and the costs in the healthcare system, are the capital return plans enough to consider buying the massive dips in Allergan from a high near $340 back in 2015.
Read the full article on Seeking Alpha. 

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

Sunday, October 30, 2016

Disney: The Problems At ESPN

Based on Nielsen's November estimates, ESPN owned by Disney (DIS) is collapsing faster than expected. The networks of ESPN, ESPN2, and ESPNU all lost over 600K subscribers for November alone.

Friday, October 28, 2016

Weatherford: Recovery Starts Now

Weatherford reported disappointing Q3 results.
The company has left the stock for dead while the market is starting to rebound.
The stock remains a speculative play in the sector for a catch-up trade.
As other industry players trade near multi-year highs, Weatherford International (NYSE:WFT) is still trading at the lows. The recent quarterly results weren't the best, but the market appears stressed out for no reason.
Read the full article on Seeking Alpha. 

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