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. 




Potash: Still Not Liking Market Fundamentals


Summary

  • Potash Corp generally exceeded Q214 estimates based on strong cost controls.
  • The potash market to remain under pressure even if new growth targets are hit.
  • Investors should consider the recent rebound in Potash Corp a gift that is contrary to the long-term fundamentals in the main fertilizer.
The latest quarterly report from Potash Corp (NYSE:POT) shows some improvements in the fertilizers markets. In a previous article, the question was whether any value existed in the potash stocks going forward. The real concern is that large miners like Rio Tinto (NYSE:RIO) and BHP Billiton (NYSE:BHP) have sights clearly on establishing potash mines and expanding market in this area due to historically higher margins.

Read the full article at Seeking Alpha.


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



Wednesday, August 6, 2014

Time Warner: Take The Money And Run... Soon


Summary

  • Twenty-First Century Fox's pursuit of Time Warner probably isn't over.
  • Valuations in the group are becoming stretched.
  • Time Warner solidly beat Q2 '14 earnings estimates, increasing the value of the company to a bidder.
A few weeks ago, the revelation that Twenty-First Century Fox (NASDAQ: FOXA) (NASDAQ:FOX) offered to purchase Time Warner (NYSE: TWX) sent the latter's stock surging roughly 17% for the day. The stock sat around the offer price of $85 for a few weeks providing the opportunity to sell it at a solid price before the 12% drop today. The offer for the content giant is another step in the cable wars though it may not materialize into a merger now. The initial moves to consolidate the cable networks in the case of Comcast (NASDAQ:CMCSA) (NASDAQ:CMCSK) buying Time Warner Cable (NYSE: TWC) is leading the content providers to look into ways of bulking up.

Read the full article at Seeking Alpha.


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



The Prime Location Of Goodrich Petroleum Acreage


Summary

  • Goodrich has prime acreage close to the Gulf Coast.
  • Recent well results from TMS provide a mixed picture.
  • The recent stock declines make the stock very intriguing now.
A growing theme in the markets is likely to develop surrounding the building demand for energy supplies around the Gulf Coast. Companies with production and infrastructure in and around the area should benefit greatly. In that manner, Goodrich Petroleum Corp (NYSE:GDP) is ideally situated following the recent developments in the Tuscaloosa Marine Shale, or TMS, and the holding of prime acres in the Haynesville Shale and Eagle Ford Shale. All of these shale plays have the major benefit of being located close to the refineries, chemical plants, and export facilities located or being built around the Texas and Louisiana coasts.

Read the full article at Seeking Alpha.


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