Saturday, July 18, 2015

ConocoPhillips: Dividend Obsession Hurts The Company


Summary

  • ConocoPhillips announces small hike in the dividend.
  • The E&P firm cancels a ultra-deepwater drillship contract with high termination fees.
  • The stock is hitting new oils due to the company protecting the dividend while oil prices head lower.
   While a lot of comments don't agree with my previous points on the dividends paid by ConocoPhillips (NYSE:COP), the latest news again backs up my claims. The exploration and production firm made another bizarre move based on protecting the dividend at the expense of prudent financial moves.

 Read the full article on Seeking Alpha.


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

Does Google Have Any More Upside?


Summary

  • Google smashes Q2 2015 earnings estimates.
  • The Internet-search giant is benefiting from better cost control and YouTube growth.
  • The stock lost a lot of the valuation appeal after the nearly $100 gain, but it still provides solid annual growth potential.
    The surprising aspect of the Q2 results for Google (NASDAQ:GOOG)(NASDAQ:GOOGL) was that expense controls were already evident in the numbers. In the article (see Is Google Finally Growing Up?) released just prior to the earnings report, the research highlighted how the stock could head a lot higher based on tighter expense controls. The level of operating margins had the potential to grow to be inline with other tech giants.


 Read the full article on Seeking Alpha.


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

Bank Of America: Still Not At New Highs


Summary

  • Bank of America produced a solid Q2'15 that finally produced strong earnings.
  • The bank continues reducing noninterest expenses to levels not seen in years.
  • With the bank stock standing to benefit from rising interest rates, BOA offers the unique opportunity to own a financial not already trading at new highs.
   Despite improving results for the large financial institutes, Bank of America (NYSE:BAC) still isn't trading at new multi-year highs. Even lowly Citigroup (NYSE:C) hit new highs after a strong Q2 report. BOA has now made a third attempt at breaking above $18 in just over the last year. Anybody buying the stock back in March 2014 has hardly made a dime in that time period.


 Read the full article on Seeking Alpha.


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

Friday, July 17, 2015

Citigroup: Don't Fret Over Revenue Growth


Summary

  • Citigroup reported another solid quarter, with Q2'15 earnings easily beating analyst estimates.
  • Revenue remains weak for several prime reasons that investors should ignore.
  • Citigroup remain extremely cheap, and shareholders now get the benefit of large share buybacks.
   The Citigroup (NYSE:C) Q2'15 earnings were solidly better than the market expected, yet the commentary wants to focus on the lack of revenue growth. With the large financial busy focusing on efficiency improvements and winding down underperforming, investors need to realize what they've got.

 Read the full article on Seeking Alpha.



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

OnDeck Capital: Potential Rewarding Shift To A Marketplace


Summary

  • OnDeck Capital released Q2'15 results that easily surpassed internal guidance.
  • The stock recently bounced off all-time lows to start the month.
  • A shift away from balance sheet risk will reward shareholders going forward.
  A big difference in the market valuations between OnDeck Capital (NYSE:ONDK) and LendingClub (NYSE:LC) is centered on the marketplace focus by the latter. In addition, OnDeck Capital carries the risk of the loans originated on its platform bringing in a higher level of risk and balance sheet requirements adding up to a lower valuation.

 Read the full article on Seeking Alpha.


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

Thursday, July 16, 2015

Delta Air Lines: Earnings Are Better Than Appearance


Summary

  • Delta Air Lines easily surpassed analyst estimates for Q2'15.
  • The airline ramped up the capital return plan by returning $1 billion to shareholders during the quarter.
  • The stock remains inexpensive at 10x current year EPS estimates and catalysts for higher earnings going forward.
  Another strong quarter by Delta Air Lines (NYSE:DAL) is apparently not appreciated by the market. The stock initially dropped over a $1 before rebounding. Not only did the airline beat analyst estimates, but also the company produced several financial metrics typically associated with much higher stock prices.

 Read the full article at Seeking Alpha.


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

Helmerich & Payne Is Positioned For A Land Drilling Rebound


Summary

  • Helmerich & Payne is positioned to continue stealing market share from competitors struggling to produce profits.
  • The stock is bottoming along with the domestic drilling rig demand.
  • Helmerich & Payne is positioned to lead the rebound with a fleet of modern land drilling rigs and the ability to consolidate the space.
   The domestic drilling market remains under pressure, but Helmerich & Payne (NYSE:HP) is positioned to benefit from a pending rebound. The stock is down roughly 50% from the peak near $115 providing an interesting entry point for new investors around $65. Over the last year, the stock has collapsed similar to the price of oil.

  Read the full article at Seeking Alpha.


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