Thursday, April 27, 2017

PayPal: About That Huge Buyback Plan

PayPal reported another solid quarter for Q1.
The digital payments company produces consistently strong and growing free cash flows.
The stock offers a reasonable value back by huge stock buyback plans.
My last recommendation on PayPal Holdings (NASDAQ:PYPL) over a year ago was to buy the digital payments stock alongside a $2 billion share buyback. After a big rally, the company still signals value even with the market cap soaring beyond $55 billion.

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


Monday, January 16, 2017

Wells Fargo: Is That What You Call Success?

Wells Fargo reported Q4 results that missed analyst estimates.
The large bank still trades at the high end of sector valuations, despite a relative underperformance over the last three months.
Investors should remember that success is all relative.
Before the open on Friday, Wells Fargo (NYSE:WFC) reported quarterly earnings along with a group of large financials. The troubled bank actually missed estimates while the sector had generally blowout numbers.
Read the full article on Seeking Alpha. 

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


Wednesday, January 4, 2017

CenturyLink: The 9% Dividend Steal

CenturyLink ended 2016 down at the lows, as the market was unimpressed with the company's decision to purchase Level 3.
The 9% dividend appears easily supported after the deal closes, based on free cash flow analysis.
A recent analyst price target provides ample upside that is a bonus with the large dividend.
CenturyLink (NYSE:CTL) ended 2016 in the dumps. The market didn't fondly view the company's proposed merger with Level 3 Communications(NASDAQ:LVLT), sending the stock down to the lows from the start of the year.
Even after the 6.6% gain on the first trading day of 2017, CenturyLink still offers a nearly 9% dividend yield. Should investors rush into the stock at around $25 per share?
Please read the full article on Seeking Alpha. 

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


Thursday, December 29, 2016

Nvidia: Pump The Brakes

Nvidia hit a new high to start trading Wednesday to cap a remarkable run from the lows to start 2016.
Despite the excitement over end market opportunities, most of the stock gains came from multiple expansion.
The analyst community became too bullish allowing for a contrarian play by Citron Research to easily take down the stock.
When a stock soars and analysts upgrade the price target, one has to question if the positive momentum is too much. Such the case incurred with Nvidia(NASDAQ:NVDA) the last couple of weeks.
Read the full article on Seeking Alpha. 

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


Saturday, December 17, 2016

Transocean: No Reason For Excitement

Transocean reached yearly highs last week.
The recent production cuts agreed to by oil producers around the world shift drilling towards domestic shale producers.
The deepwater drilling market still remains far from a recovery as Transocean continues to face a declining backlog.
On the back of more oil production cuts, Transocean (NYSE:RIG) soared to multi-year highs this week. The news though has questionable benefits for the offshore drilling market.
The stock traded at a high of $16.66 to start the week, but Transocean is closing down for the week around $15. The question now is whether investors are rushing into the sector on false hopes.
Read the full article on Seeking Alpha. 


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