Thursday, October 31, 2013

Freeport-McMoRan Not Just Copper Anymore


The huge gains by Freeport-McMoRan Copper & Gold (NYSE: FCX  ) over the last few months probably caught a lot of investors off guard. The company is a premier natural resource company, with a global portfolio of copper and gold assets, and significant domestic oil and gas resources. Somehow, slumping commodity prices for copper and gold haven't crushed the stock. In addition, the purchase of energy assets (with debt) isn't holding down the stock. So what is pushing it higher?

It was beaten during the early parts of 2013 due to a merger that took away the focus on copper production and byproducts. Ironically, the stock has done better than copper focused producer Southern Copper (NYSE: SCCO  ). Looking at large energy producers such as Chesapeake Energy (NYSE: CHK  ), you can see a shift in sentiment toward more complex energy producers that happen to be laden with debt.

Read the full article here.


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




Wednesday, October 30, 2013

Angie's List Knocked Down Again


One thing for sure, the stock market is not very forgiving of growth stocks that miss earnings estimates, no matter the amount. In the case of Angie's List (NASDAQ: ANGI  ) , the stock continued a month-long collapse after a third-quarter earnings miss. The company that offers paid members access to reviews of local service professionals generated revenue growth of 56%, yet it wasn't enough to meet analyst estimates.

The company remains under extreme pressure to justify how paid memberships outweigh the free reviews on sites like Yelp (NYSE: YELP  ) . The difference in stock valuations signals that the market thinks the free versions with larger user bases are more valuable. However, investors need to remember that the market tends to overreact and a reversion to the mean could take place in 2014. Remember that Yelp spent most of 2012 in the doghouse trying to convince the stock market that user reviews were a valuable service.

Read the full article here.


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




Saturday, October 26, 2013

Glu Mobile Continues to Hunt for Supersized Value

About a month ago, this article on Glu Mobile (NASDAQ: GLUU  ) discussed whether the major hit Deer Hunter 2014 would have staying power. At the time, hope existed that the producer of free games had finally found a method to successfully monetize mobile games. More than a month later, the game remains a huge success, sitting near the top-grossing games on both Apple iOS and Google Play charts, according to AppAnnie.com. The question now isn't if the game will be a success, but how much value this super-sized winner will generate.

Read the full article here.


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




Friday, October 25, 2013

Kingold Jewelry: A Chinese Gem Hidden For The Last Two Years


A couple of years after the China fraud fears, stocks such as Kingold Jewelry (KGJI) continue to trade below book value. The producer of 24-carat gold jewelry continues to grow via market share gains, but until recently the stock traded as if the stock was going out of business instead of constantly generating solid profits and substantial growth.

The company makes branded and customized jewelry, ornaments and investment-oriented products. For the branded products, Kingold purchases gold directly from the Shanghai Gold Exchange, thereby, requiring a significant amount of gold inventories. For the most part, the company is a manufacturer of gold jewelry, but it does hold the risk of the fluctuations in gold prices.

Read the full article at Seeking Alpha.


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




3 Stocks to Benefit from the Coming Non-Residential Construction Boom


All year long, the monthly Architecture Billing Index, or ABI, has suggested that the non-residential construction market would boom in the next year. So far, the actual gains haven't showed up -- but that may only be a matter of time. Whether difficulty in obtaining project financing is slowing down the actual construction, or a lack of confidence in the U.S. government is giving potential builders pause, the ABI work will eventually occur.

The companies that will benefit from a boom in non-residential construction will naturally be construction equipment manufacturers and equipment rental firms. Based on recently released results, United Rentals (NYSE: URI  ) is already seeing a boom as construction firms look to rent more in a shaky business environment.

Read the full article here.


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




Unlocking Value at Millennial Media


After the announcement of the acquisition of Jumptap back in early August, Millennial Media (NYSE: MM  ) plunged. The independent leader in mobile advertising was unable to satisfy analysts concerned about organic growth, but should that matter to an investor?

The primary reason for the purchase of Jumptap is that the company supposedly spent the last few years building a mobile platform the exact opposite of Millennial Media. In fact, Jumptap focused on a programmatic buying network that recently fueled the strong IPO of Rocket Fuel (NASDAQ: FUEL  ) . With programmatic buying seeing such strong growth, should investors care whether the growth was bought or built?

Read the full article here.


Disclosure: Long MM and FUEL. Please review the disclaimer page for more details. 



Terex: Still Expecting The Margin Improvements


Small-Cap Insight


A year after originally writing about the key margin improvements expected at Terex Corporation (TEX), the amounts are still a future expectation. In fact, back in 2009 the company originally presented the expectations that operating margins would increase to 12% by 2013. The number though still languishes around 6% on a yearly basis.

The company remains a leader in the manufacturer of machinery and industrial equipment focused on aerial work platforms (AWP), construction, cranes, material handling and port solutions (MHPS), and materials processing segments.

Read the full article at Seeking Alpha.


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



Thursday, October 24, 2013

Playing the C&J Energy Services Breakout


For a couple of years now, C&J Energy Services (NYSE: CJES  ) has had the potential to be a top oil services stock benefiting from the shale boom in the U.S. Unfortunately, low natural gas prices have pressured margins and held the stock of this budding hydraulic fracturing specialist in check during the last two years.

C&J Energy is a leading provider of premium hydraulic fracturing, coiled tubing, pressure pumping, wireline and other complementary completion services. The company has a focus on the most complex and technically demanding well completions. C&J Energy has a strong presence in the Bakken Shale, Eagle Ford, and Permian Basin. The recent results from multinational oil service firms Baker Hughes (NYSE: BHI  ) and Schlumberger (NYSE: SLB  ) have pushed the sector higher, but analysts from Cowen & Co cut the rating on C&J Energy due to expected pricing pressure. The stock continues to break out with expectation of a better pricing environment in 2014 contrary to the Cowen call.

Read the full article here.


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




Wednesday, October 23, 2013

ChinaCache: China Internet On The Cheap


One of the more puzzling aspects of the China Internet stock boom has been the general lack of interest in ChinaCache International (CCIH). Well until the stock recently got a major boost from limited publicity.

Anybody following the original China Internet boom back in 2010 might recall that ChinaCache had a hugely successful IPO that soared 100%. The 'Akamai of China' quickly collapsed on the fears of fraud that hit every Chinese stock for the next couple of years. The stock has now doubled in the last month; yet it still trades at industry low multiples by an extreme margin.

Read the full article at Seeking Alpha.


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



Sunday, October 20, 2013

1 Stock to Gain From the Niobrara Beast


Nearly two years after being spun off from Williams Companies (NYSE: WMB  ) , WPX Energy (NYSE: WPX  ) is finally seeing decent stock gains. The large natural gas producer has been pushing toward drilling for oil, but ironically a massive natural gas find places this stock on a path to huge reserve growth.

Compared to other natural gas producers such as Range Resources (NYSE: RRC  ) and Southwestern Energy (NYSE: SWN  ) , the stock trades at sub-par multiples. Due to the massive well in the Niobrara shale called the 'beast,' it could finally be back on a growth trajectory.

Read the full article here.


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




Marin Software: Getting Ready For Prime Time


Small-Cap Insight 


Even after a very successful IPO in the ad tech sector in Rocket Fuel (FUEL), the rest of the sector continues to languish below original IPO price ranges. This includes a wide variety of stocks from mobile to video ad networks and now a revenue acquisition management (RAM) leader. In the case of Marin Software (MRIN), the company might fit better in the Software-as-a-service (SAAS) category, though it definitely trades like an ad tech stock.

Marin Software provides a leading RAM platform used by advertisers and agencies to manage more than $5 billion in annualized ad spend. The platform allows advertisers to measure, manage, and optimize their digital advertising investments across search, display, social, and mobile channels. Basically it allows marketers to execute the full spectrum of ad spend within one platform that eliminates the complexities of the digital ad world and saves the advertiser time and improves the ad effectiveness. The company claims impressive customers including Microsoft, Hulu, Vistaprint, HSN, and PayChex.

Read the full article at Seeking Alpha.


Disclosure: Long FUEL, MM, MRIN. Please review the disclaimer page for more details. 




Saturday, October 19, 2013

Opportunity Exists At Fusion-io Only If It Can Execute


Small-Cap Insight


Plenty of opportunity exists for Fusion-io (FIO) to be a major winner, but the company must improve execution. The potential to replace hard disk drives (HDDs) with flash-storage is enormous, but the company continues to spend too much on attracting new customers to generate much in the way of profits.

Fusion-io aims to deliver the world's data faster via platform and defined storage solutions that accelerate virtualization, databases, cloud computing, big data and performance applications. It has long been primarily focused on Apple and Facebook as customers, but it has spent the last year transitioning to more enterprise and other hyperscale customers for diversification. Has the company finally reached the next growth phase that will push the stock higher?

Read the full article at Seeking Alpha.


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



Violin Memory: Will It Always Remain Weak?


The recent IPO of flash-storage provider Violin Memory (NYSE: VMEM  ) failed to impress the market due to several persistent issues including an auditors going concern doubt. The IPO process can be very volatile and investors need to look no further than the Facebook IPO to see how a disappointing market reaction can quickly turn around.

The major problem with Violin Memory was the shocking level of losses. The company lost so much money over the last six months that it likely had to raise money. Another factor in the recent pricing weakness has been the horrible market trading of other flash-storage providers Fusion-io (NYSE: FIO  ) and OCZ Technology (NASDAQ: OCZ  ) . Does the recent weakness provide a buying opportunity for patient long-term investors?

Read the full article here.


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



Friday, October 18, 2013

What Is Powering NetSuite so High?

Any investor reviewing the financials of NetSuite (NYSE: N  ) , the cloud-software based Enterprise Resource Planning (ERP) company, would probably derive a stock value below $30 rather quickly. Most investors would be shocked that the stock trades at nearly $110. The company is growing quickly as enterprises move toward cloud offerings, but NetSuite is only marginally profitable and revenue growth is slowing down to a more sustainable 25% long-term growth rate. Why then are investors willing to pay $8 billion for a stock only generating $400 million in revenue?

Read the full article here.


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




Thursday, October 17, 2013

The Niobrara Beast

Interesting video by WPX Energy (WPX) on the massive natural gas well called the Niobrara Beast.





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




Is Proto Labs About to Duplicate the ExOne Collapse?


As Proto Labs (NYSE: PRLB  ) gains day after day, investors need to be reminded of ExOne's  (NASDAQ: XONE  ) stock collapse in the related rapid prototyping sector. Like ExOne , Proto Labs stock soared to $80 from below $30 during the last year. . But after ExOne shares' major collapse in the last month, Proto Labs' investors need to understand that further stock gains could set it up for a similar fate.

Proto Labs is a quick-turn manufacturer of custom parts for prototyping, while ExOne develops machines for producing additive manufacturing parts -- commonly referred to as 3D printers. In general terms, these two stocks work to improve the process of developing new products. Both companies' quick revenue growth has led to massive share-price gains that their respective fundamentals probably don't support.

Read the full article here.


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




2 Stocks for Exposure to Emerging Markets


Most consumers in the U.S. don't even think twice about using a credit card or having access to a bank account, but the banking sector in emerging markets is not available to all consumers, or even trusted in places such as Russia.

Two stocks capitalizing on this offer investors the opportunity to invest in the potential growth in money services in countries such as India, Mexico, and Russia.

Read the full article here.


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




Wednesday, October 16, 2013

Clean Energy: What Was Piper Thinking?


On Tuesday, Piper Jaffray made the Clean Energy Fuels (CLNE) stock its top sell through 2014 based on several reasons that don't add up. The firm also lowered the target price to $4.50 from $9.50. Considering the stock was trading around $13, the research report naturally caused the stock to absolutely plunge the following day.

The company is a leading provider of natural gas fuel for transportation in North America. It builds and operates compressed natural gas (CNG) and liquefied natural gas (LNG) fueling stations. Note that the company's description absolutely lists CNG as a fuel it sells. This fact will come into play as we deconstruct the analyst call.

Read the full article at Seeking Alpha.


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




Angie's List: Fallen But Can It Get Back Up?


In the last month, the price for shares of Angie's List (NASDAQ: ANGI  ) has absolutely collapsed. The company offers paid subscribers access to reviews of local service professionals and is under extreme pressure to show that paid memberships outweigh the free reviews on sites such as Yelp (NYSE: YELP  ) .

The user review sites both came public around the start of 2012 with valuations in the general $1 billion range, but after the recent weakness in Angie's List's price the stocks have vast discrepancies making them worth another review. The recent declines in Angie's price should also be a major warning that Yelp investors should never get too comfortable. The fundamental case for either stock can shift quickly.

Read the full article here.


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



Tuesday, October 15, 2013

Nuverra: Liquidity Fears Overblown


While some continue to fret over debt issues at Nuverra Environmental (NES), the company recently announced an update to an important credit facility to provide it more time to turn around operations before encountering liquidity issues. The move shouldn't be a huge surprise to investors, as creditors normally want to work with companies to provide ample time to improve numbers to acceptable levels. Not to mention, our previous article highlighted how positive operating cash flows would make it a slam-dunk for the modified covenants, if needed.

The company is dedicated to the protection and enhancement of environmental solutions for the removal and disposal of restricted fluids primarily from shale drilling. It has scattered operations in most of the shale areas with a focus on the Bakken shale from the Power Fuels merger last year. Several catalysts for improving operations include the shift away from contract workers in the Marcellus shale and new management to guide the Eagle Ford segment that struggled during Q213.

Read the full article at Seeking Alpha.


Disclosure: Long CJES and NES. Please review the disclaimer page for more details. 



Friday, October 11, 2013

The Unfortunately Opportunistic Yields Of CenturyLink


One difficult part of investing requires that investors not follow the herd. In the case of CenturyLink (CTL), the company continues to produce solid free cash flow as the market harps on revenue growth and legacy business lines. The stock now trades back around 52-week lows even while providing a net payout yield of around 12% and growing.

The company is the third largest telecommunications provider in the U.S. It provides data, voice and managed services in local, national and select international markets. The stock market though focuses squarely on its legacy local voice business and misses the transition to data services including fiber to wireless towers and growing television service.

Read the full article at Seeking Alpha.


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

Is This Retailer Gunning for Amazon?


Is it possible that this down and out retailer has a game plan to take on Amazon.com (NASDAQ: AMZN  ) ? Amazon is by far the leading online retailer, but it might surprise most investors that Sears Holdings (NASDAQ: SHLD) is considerably along the path toward being a leading online retailer.

No matter what investors think of the plans that CEO Eddie Lampert has undertaken by limiting spending on sprucing up stores, the company has made plans to become a leading online retailer.
Sears has even recently advanced fulfillment services to include same-day delivery or in-store pickup that might offer a compelling advantage over Amazon.

Read the full article here.


Disclosure: Long SHLD. Please read the disclaimer page.



Thursday, October 10, 2013

Republic Unloads Struggling Frontier to Provide Better Focus


After years of attempting to turn around Frontier Airlines, Republic Airways (NASDAQ: RJET  ) (NASDAQ: RJET  ) (NASDAQ: RJET  ) made a move that should have surprised no one in the industry. The operator of fixed-fee flights for partner airlines agreed to sell Frontier to a group run by William Franke, the former chairman of Spirit Airlines (NASDAQ: SAVE  ) (NASDAQ: SAVE  ) (NASDAQ: SAVE  ) . Exiting the troubled subsidiary allows Republic to focus on the profitable fixed-fee segment, but the airline failed to obtain anything significant for its four years of work attempting to make Frontier viable.

Read the full article here.


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

The Sky-High Valuations of Shutter Stocks


Two of the most remarkable runs in the current market are Shutterfly (NASDAQ: SFLY  ) and Shutterstock (NYSE: SSTK  ) . Not only do the companies deal in photo books and digital images that appear to offer nothing proprietary, but the stocks also trade as if the companies are leading a revolutionary change.

Investors naturally get excited about the brand recognition possibilities and the cloud services offered to consumers to create irreplaceable lifetime products. The question is if the services offer any sort of moat that prevents competition from easily replicating the products. The hope from investors is that once consumers join the service, they won't stray to other websites.

Read the full article here


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

Wednesday, October 9, 2013

Trusting InvenSense Managment


Small-cap Insight


A big part of investing requires trusting the management team of a stock. In most scenarios that is exactly what investors should be doing. In the case of InvenSense (INVN), the company clearly laid out the case for a significant new customer that most all but assumed had to be Apple (AAPL). Now after teardowns of the new iPhones, analysts have become concerned that InvenSense didn't win the Apple contract after all. Should investors trust management or spend endless time trying to prove out the case presented during the latest earnings call?

InvenSense makes motion-tracking products used by the likes of Samsung and Nintendo in smartphones and game systems to improve the performance and accuracy of motion and gesture-based interfaces. The technology has numerous long-term benefits from optical image stabilization in cameras to motion tracking on all types of wearable devices of the future.

Read the full article at Seeking Alpha.


Disclosure: Long INVN, AAPL. Please review the disclaimer page for more details. 




Top 10 Net Payout Yield Stocks For October 2013


This article is a continuation of a monthly series highlighting the top net payout yield (NPY) stocks that was started back in June, 2012 (see article) and explained in August, 2012 (see article). The series highlights the best stocks for the upcoming month. Please review the original articles for more information on the NPY concept.

September Returns
Below are two charts highlighting the monthly returns of the top 10 stocks from September (see list here). Due to limitations with YCharts, the chart was broken into the Top 5 and Next 5 lists.

Read the full article at Seeking Alpha.


Disclosure: Long AMP, CTL, DTV, KSS, MSI, NLY, T. Please review the disclaimer page for more details. 




Why This Airline Isn't Threatening Its Rivals... Yet


Following a few intriguing moves in the past month, Spirit Airlines' (NASDAQ: SAVE  )  cheap-ticket, high-fee model could be in for serious competition in a few years.

Spirit chairman William Franke, who pioneered the airline's highly profitable approach to flying, resigned his post after his Indigo Partners group sold a substantial stake in the airline. But Franke and Indigo turned right around and bought Frontier Airlines, a subsidiary of Republic Airways (NASDAQ: RJET  ) The deal won't close until December, and given the time it takes to turn around an airline, Spirit and Allegiant Travel (NASDAQ: ALGT  ) shouldn't sweat Frontier's competition for now. However, with a strong operator at its helm, other ultra-low-cost carriers could face a tougher rival in the future.

Read the full article here.


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




Tuesday, October 8, 2013

Monday, October 7, 2013

The Not So Redeeming Tweets By Clean Energy


Last week, the CEO of Clean Energy Fuels (CLNE) tweeted about an exciting company event sending the stock 10% higher the following day. On Thursday, the company announced the distribution of a renewable natural gas fuel, Redeem, made entirely from waste. The stock though plunged back close to the previous levels as the market expected something bigger regarding customers or government incentives. This round trip move should highlight the perils of investors paying too much attention to social media. A big difference exists between a company important achievement and a stock moving event.

Tweet Details

The basics are that the CEO started tweeting on Sept. 24 discussing big things in the works at Clean Energy and natural gas fueling. On that day, he promised a big announcement the following week. Due to his recent addition to Twitter and limited followers (around 425 at time of writing), his proclamation probably didn't get a lot of notice nor did it again with a further tweet about a big announcement on Sept. 26. By the 30th though, the Twitter account was identified and the tweet regarding a big announcement on Oct. 3 hit the mainstream investors. The stock soared the following day based on the typical over-hyped expectations. Below are the three tweets:


Read the full article at Seeking Alpha.



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




Sunday, October 6, 2013

Management Is Making the Right Moves at AerCap


In the business of buying, leasing, and eventually selling multimillion-dollar machines, the ability to buy and sell at the right time can be as crucial as leasing the machine for a profit during the holding period. In the case of AerCap Holdings (NYSE: AER  ) , the management team has consistently done an excellent job of acquiring planes through alternative methods rather than paying high prices directly to airplane manufactures and selling the planes at profits before they become outdated and difficult to unload.

Due to key mergers and acquisitions over the years, AerCap Holdings has built itself up to one of the largest airplane leasing firms in the world. The company currently owns or manages 368 aircraft with an average age of 5.3 years and a lease term of 6.6 years. Not only has management been successful at plane trading, but it also was successful in buying debt at a discount and repurchasing shares substantially below book value.

Read the full article here.


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




Saturday, October 5, 2013

American Capital's Roaring Buybacks


With the stock continuously trading below net asset value (NAV), American Capital, Ltd (ACAS) keeps the buyback roaring quarter after quarter. As the company continues to plod along with positive earnings, a growing NAV, and substantial assets under management, it remains puzzling that investors are unwilling to pay fair value for the stock.

American Capital is a private equity firm and global asset manager. The company owns over 40 businesses and manages $21 billion of assets, including through an affiliate it manages publicly traded American Capital Agency Corp. (AGNC) and American Capital Mortgage Investment Corp (MTGE).

Read the full article at Seeking Alpha.


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




The Rocket Scientists of Ads

It's rare to see a technology company, much less one involved in advertising, to so predominantly display a focus on scientists. In the case of Rocket Fuel (NASDAQ:FUEL  , the ad tech firm that recently had a spectacular IPO focuses on using artificial intelligence, or AI, and big data to drive predictive modeling and automated decision-making. In essence, the company believes that sophisticated machines can optimize business outcomes for advertisers as the digital world moves at the speed of light. The company focuses on programmatic buying via real-time bidding, or RTB.

Read the full article here.



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




Friday, October 4, 2013

Cost Savings in Motion at Delta Air Lines


If you're looking for further signs of maturity in the airline industry, consider Delta Air Lines'  (NYSE: DAL  )  plans to lower costs by $300 million a year via a mix of old and new planes.

That savings might not seem significant to an airline with a revenue base of around $37 billion, but investors need to remember that Delta only has a market cap of $20 billion, and annual profits approaching $2 billion.

Read the full article here.


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




Thursday, October 3, 2013

JetBlue Wants Access to Reagan National


Unfortunately it doesn't appear that The Street video can be embedded, but it is very interesting to see the CEO of JetBlue (JBLU) make it clear that he wants access to the Reagan National airport. Remember that the Reagan National airport slots dominated by US Airways (LLC) and American Airlines (AAMRQ) are prime reasons for the DOJ lawsuit to stop the merger. It is clear that it would be very easy to transition some airport slots away from that merged entity in favor of JetBlue and probably just about every other domestic airline.

The DOJ lawsuit just doesn't hold water as any airport that becomes non-competitive will quickly attract further airlines.

See the video here.


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




Will ChinaCache Join the China Party?


After one of the biggest IPO gains back in 2010 and comparisons to Akamai Technologies (NASDAQ: AKAM  ) , ChinaCache (NASDAQ: CCIH  ) has mostly toiled in obscurity the last three years. While the content and application delivery network provider has struggled with sustainable profits, the company continues to generate fast growth having recently regained a 30% growth level again.

With China tech stocks from Qihoo 360 Technology (NYSE: QIHU  ) to Badiu surging this year as 3G mobile services increase the Internet reach in China, ChinaCache has gotten some market interest, but the stock still trades far below normal multiples for a fast-growing tech stock.

Read the article here.


Disclosure: Long CCIH and BIDU. Please review the disclaimer page for more details. 




Will These Ad Tech Firms Rocket Higher?


After an ad tech IPO opened up over 100%, will the other recent ad tech IPOs now rocket higher? Last week, the developer of an automated decision-making platform focused on digital advertising named Rocket Fuel (NASDAQ: FUEL  ) had a fantastic day, suggesting that other ad tech stocks could finally perk up. Prior to this IPO surge, the whole sector had been seen as a major failure with disappointing offerings over and over.

Rocket Fuel was probably the catalyst for recent surges in sector stocks of Tremor Video (NYSE: TRMR  ) and Marin Software (NYSE: MRIN  ) . Both stocks have traded horribly since recent IPOs, but the huge rally by Rocket Fuel might signal a major shift in sentiment in the sector.

Read the full article here.


Disclosure: Long FUEL and MRIN. Please read the disclaimer page for more details. 





Infusing a Fragmented Market


One way for a business to expand is buying up smaller competitors to create a regional or national play in a fragmented industry. The plan can help build a brand that provides for better recognition over smaller competitors, but it can also be ripe with problems of consolidating numerous businesses with different cultures.

In the home care and infusion sector, BioScrip (NASDAQ: BIOS  ) has begun the process of acquiring companies that provide alternate-site and home infusion therapy for patients with complex, acute and chronic illnesses. With an aging population, the expectations for all types of therapies provided outside expensive medical centers are expected to continue growing.

Read the article here.


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




Sears Moves Into Data Centers

In a previous article focusing on the redevelopment plans for the massive real estate held by Sears Holdings (NASDAQ: SHLD  ) , the secret plans to develop some of the less desirable stores into data centers wasn't even discussed. With so many plans under way to create value mostly unannounced by the company, it can be difficult to cover all of the opportunities in one article. The company as well has made interludes into working on big data projects further highlighting the potential of re-purposing existing real estate into highly valuable alternatives.  

Read the full article here.


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




Wednesday, October 2, 2013

Following Icahn Into Nuance Could Reward Investors


Following a legendary investor into a stock can be a compelling proposition, but should investors actually do it? Recently, Carl Icahn has been in the news with huge gains from positions in Apple, Netflix, and Herbalife to name a few. One rarely mentioned position is the one that Icahn has been accumulating in Nuance Communications (NASDAQ: NUAN  ) on each drop of the stock.

While Icahn has been very successful with numerous positions, the biggest risk for somebody following his moves or any other legendary investor is that they can exit a position and cause the stock to crash before the small investor even knows what happened. Another major concern is chasing a position after somebody of the stature of Icahn files for a greater than 5% holding.

Read the full article here.


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