Thursday, December 25, 2014

IBM: Capital Returns To Shareholders Aren't Financial Engineering

Summary

  • Financial engineering is an overused term when a company does a large-scale stock buyback program.
  • The weak results of IBM are well documented, but the FCF remains strong compared to the market valuation.
  • The recent 15% net payout yield is a strong buy signal.
With the recent collapse of International Business Machines' (NYSE:IBM) stock, lots of questions surround the large stock buyback. When a company uses FCF (free cash flow) and even issues debt to repurchase shares, some in the investment community - including an article by Stock Market Sherpa - like to proclaim financial engineering has occurred. By making that statement, it suggests that the company is undertaking something to deceive investors.


Read the full article at Seeking Alpha.


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

Wednesday, December 24, 2014

Buy Twitter If Instagram Is Worth $35 Billion


Summary

  • Citigroup analysts assigned a $35 billion valuation to Instagram that is only now monetizing the user base.
  • Instagram and Twitter have comparable logged-in user bases, though the former is growing faster.
  • Twitter is significantly ahead of Instagram on the monetization path, and provides an attractive valuation compared to Instagram that is part of the significantly larger Facebook.
The absurdity of a $35 billion valuation on a company division that is barely producing revenue is comical, but that is the valuation assigned to Instagram by a Citigroup analyst. The market and especially investors in Facebook (NASDAQ:FB) that bought the social picture sharing service for $1 billion were initially excited about that news. Clearly, Facebook got a great deal at the $1 billion valuation, but investors need to wise up to the proclaimed valuation.

Read the full article at Seeking Alpha.


Disclosure: Long TWTR via GSVC. Please review the disclaimer page for more details. 




Is AT&T Harming DirecTV Shareholders?


Summary

  • The AT&T and DirecTV deal isn't set to be finalized until next year.
  • AT&T is potentially the big bidder at the AWS-3 spectrum auction that could harm the valuation ultimately obtained by DirecTV shareholders when the deal closes.
  • The domestic wireless pricing wars and wireless spectrum auctions continue to dilute the potential windfall for DirecTV shareholders.
With AT&T (NYSE:T) in the middle of closing the DirecTV (NASDAQ:DTV) merger, the apparent aggressive spending on the domestic wireless auction brings up corporate governance issues for shareholders. Along with the domestic wireless pricing war, the situation highlights the issues with corporate stock deals that take so long to finalize. It leaves investors of the acquired company trapped waiting to cash out of the stock while hoping the acquirer doesn't make moves in the meantime to impact the stock.

 Read the full article at Seeking Alpha.

 Disclosure: Long T and DTV. Please read the disclaimer page for more details.

Tuesday, December 23, 2014

Chesapeake Energy: Brilliant Stock Buyback, But Will It Help?


Summary

  • Chesapeake Energy closes deal with Southwestern Energy to sell Southern Marcellus Shale assets providing a significant liquidity injection.
  • Chesapeake surprises the market with the authorization of a large stock buyback.
  • The brilliant moves to improve liquidity and reward shareholders can't overcome the weak commodity environment.
Before the opening bell, Chesapeake Energy (NYSE:CHK) announced that it had finalized the nearly $5 billion sale of Marcellus assets. Along with the deal completion, the Board of Directors authorized a $1 billion stock buyback plan.

 Read the full article at Seeking Alpha.

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


Thursday, November 27, 2014

Update: Seadrill Q3 '14 Earnings And Dividend Suspension


Summary

  • Seadrill reports Q3'14 earnings.
  • Stock is a strong buy on the irrational selloff.
  • The original investment thesis expected solid results from Seadrill, but it did not anticipate the irrational level of selling to continue.         

Read the full article at Seeking Alpha. 


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



Friday, October 24, 2014

Wireless Pricing Wars Take A Bite Out Of AT&T

 

Summary

  • AT&T results are starting to struggle as the domestic pricing war unfolds.
  • The company reported lower earnings over the prior year, and missed analyst estimates.
  • The high dividend yield is not attractive enough to overcome the domestic pricing pressures.
 In what shouldn't be a huge surprise to investors considering the pricing wars in the domestic wireless market amplified by Sprint back in August, AT&T (NYSE:T) reported Q314 earnings that missed analyst estimates. The domestic telecom giant faces a wireless market where Sprint (NYSE:S) and T-Mobile (NYSE:TMUS) are suddenly battling for subscribers via aggressive pricing plans.


       Read full article at Seeking Alpha.


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

Update: NXP Semiconductors Reports Strong Q3 '14 Earnings

 

Summary

  • NXP Semi reported Q314 earnings.
  • The stock remains a buy.
  • The original investment thesis anticipated that the company could shake off the industry warnings due to involvement in strong product cycles.
 With the reporting of Q314 earnings, NXP Semiconductors (NASDAQ:NXPI) proved that the technology sector in general and the semiconductor category specifically is a matter of having the right products for the current trends. The company continues to benefit from demand for wireless base stations and mobile wallet chips. Following the massive sell-off after the Microchip (NASDAQ:MCHP) warning regarding a slowdown in the semi industry, investors were encouraged in the article "NXP Semiconductor: Perfect Storm Hits Stock" to cautiously start buying NXPI around $56. During the earnings call, the CEO provided the perfect summary of the current environment in the semi industry:


  Read the article at Seeking Alpha.


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

Update: Clean Energy Fuels Reports Q3 '14 Earnings


 

Summary

  • Clean Energy reports Q314 earnings.
  • Based on these results, the stock is still a sell.
  • Previous research anticipated that bottom line results would make no meaningful improvements over prior years.
 After the close yesterday, Clean Energy Fuels (NASDAQ:CLNE) continued the pattern of reporting a growing market compounded by large losses. The alternative fuel supplier did slightly beat analyst estimates for Q314, but the loss was significantly larger than the prior year. Also, it continued a pattern of beating estimates without the company making progress on improving operations. Note that the company beat estimates back in Q214, yet the stock is down substantially since that report.

 Read full article at Seeking Alpha.

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

Update: Weatherford Reports Strong Q3 '14 Earnings, Yet Disappoints


 Summary

  • Weatherford reports Q3'14 earnings.
  • The stock is attractive based on solid results and lower stock price.
  • The strong financial results were expected, but the large drop in oil prices wasn't anticipated to impact the stock this dramatically.
 Despite reporting huge increases in all key metrics outside of revenue, Weatherford (NYSE:WFT) still managed to disappoint the stock market. The oilfield services firm has spent the last year divesting operations and focusing on margins over revenue growth helping dramatically improve margins and profits. The stock though is down on the Q3'14 earnings release after other major oilfield service firms rebounded on positive earnings news.

 Read full article at Seeking Alpha.

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

Thursday, October 23, 2014

Update: American Airlines Reports Record Q3 '14 Earnings


Summary

  • American Airlines reported Q314 earnings.
  • The stock is a strong buy.
  • The investment thesis anticipated short-term issues in Q3 to subside and provide for big gains in 2015 on the sliding fuel prices.
Before the market open, American Airlines Group (NASDAQ:AAL) reported record Q314 earnings. The numbers even beat analyst estimates, but the numbers were highly disappointing compared to expectations when the quarter started. This scenario further highlights how the airline industry is in a more favorable environment with tailwinds easily offsetting short-term issues.

Read the full article at Seeking Alpha.


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




Update: Yelp Reports Q314 Earnings


 Summary

  • Yelp reported Q314 earnings.
  • Stock is a solid buy on any dips.
  • The original investment thesis didn't anticipate the mixed guidance, but the stock remains on strong growth trajectory factoring in normal bumps in the road.
 After the close, Yelp (NYSE:YELP) reported Q314 earnings that easily beat company guidance and analyst estimates. The online consumer review site provided mixed Q4 guidance that disappointed the market, sending stock down as much as 15% in after hours.


 Read full article at Seeking Alpha.


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

It Appears That Icahn Is Right About Apple In One Regard


Summary

  • Though Icahn has overly aggressive forecasts for Apple, he has one point that appears very accurate.
  • Icahn suggests mutual funds are under invested in Apple, but he has not made the case for funds actually having more cash to invest in the stock.
  • Apple's PE continues to inversely relate to the market cap.
After some very bullish media reports regarding demand for the new iPhone 6/6+, Apple (AAPL) has gone nowhere. Sure the overall volatility in the stock market hasn't helped since the much anticipated release of the new phones back in September, but it appears that Apple faces larger problems to obtaining a higher earnings multiple.

Read the full article at Seeking Alpha.


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




Wednesday, October 22, 2014

Update: 3D Systems Warns On Q3 '14 Earnings


 Summary

  • 3D Systems releases preliminary Q314 results.
  • Investors should avoid the stock. .
  • The original thesis warned investors to tread lightly into the stock until improved operations despite the more attractive valuation. .
 Prior to the open, 3D Systems (DDD) warned that Q314 numbers would fall far short of estimates. The company suggested that direct metal printer production failed to achieve scale. The news continues a pattern of the fast-growing 3D printer manufacturer disappointing investors.


 Read full article at Seeking Alpha.


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

Yahoo: Ignore The Headlines, The Q3 '14 Results Were Bad


 Summary

  • Yahoo reported Q314 numbers that generally beat estimates based on non-repeating items.

  • Operations continue to show negative trends.

  • A big jump in earnings from equity interests provided all of the upside that will drop going forward with the reduced investment in Alibaba.
 After Yahoo (NASDAQ:YHOO) released Q314 earnings, most of the financial media outlets reported that the company smashed analyst estimates. The online media company flush with cash from selling Alibaba (NYSE:BABA) stock at the recent IPO is still struggling with operations despite the headlines. The media latched onto the non-GAAP earnings of $0.52, but seemingly missed that the results were highly influenced by gains in equity interests. The continued decline in the daily operations should garner more focus considering investors were already well aware of the strong numbers from Alibaba.

 Read full article at Seeking Alpha.


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

Peabody Energy Still Faces A Tough Coal Industry


 Summary

  • Peabody Energy reported Q3'14 earnings that generally beat estimates.
  • The company continues to forecast an oversupply of coal despite solid global demand.
  • The stock remains beaten down, but it needs catalysts to turn around before it becomes a buy.
 Reading through the Peabody Energy (NYSE:BTU) quarterly transcript and the absolute numbers are horrible. The domestic coal miner continues to face an industry with short-term oversupply and promising long-term global demand scenarios. The stock remains in a downtrend, but one prime reason to not give up tracking the stock were the rebounds in the steel stocks. US Steel Group (NYSE:X) is a major user of metallurgical coal and faced a similar weak outlook back in mid-2013, yet the stock went on to soar roughly 150% in the following year. At some point, the supply and demand equation could reverse back in favor of coal miners similar to how it has for domestic steel producers.

 Read full article at Seeking Alpha

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

Tuesday, October 21, 2014

Update: Lockheed Martin Q3 '14 Earnings


 Summary

  • Lockheed Martin reported mixed Q314 earnings
  • Investors should sell the stock with limited upside from these levels.
  • The original investment thesis anticipated that the stock could start facing issues with lower capital returned to shareholders due to the higher stock prices.
 Lockheed Martin (NYSE:LMT) reported that Q314 earnings beat analyst estimates when including money saved on pension plans. The defense firm continues to see revenue fall and now forecasts single digit declines in 2015. The mixed results sent the stock down in a very bullish day for the stock market with the S&P 500 index up close to 2%.

 Read full article at Seeking Alpha.


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

Update: Verizon Q3 '14 Earnings


 Summary

  • Verizon reports Q314 earnings.
  • Investors should continue avoiding the stock.
  • The pricing pressure in the sector and ability to only add tablet customers was anticipated to impact growth rates going forward.
 Before the market opened, Verizon (NYSE:VZ) reported earnings that continue to show pressure from the new domestic pricing wars. The large wireless provider missed analyst estimates for the second quarter this year amidst a slowing growth rate for wireless service revenue and pressures on margins.

 Read full article at Seeking Alpha.


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

Update: Apple Q4 '14 Earnings


Summary

  • Apple reported Q4'14 earnings.
  • The stock remains a solid buy.
  • The strong results and guidance due to the iPhone 6 were predicted to struggle to have a material impact on the stock.
After the close on Monday, Apple (NASDAQ:AAPL) reported Q4'14 earnings for the quarter ended in September of $1.42 that easily beat analyst estimates of $1.31. In addition, the company gave strong revenue guidance of $65.0 billion on average for Q1'15 ending in December that easily surpass the analyst estimates of around $63.5 billion. Despite the good numbers, the stock only had a minor gain in after hours with it trading close to all-time highs at around $100.

Read the full update at Seeking Alpha.


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




Playing The Oil Slump With Zulily


Summary

  • The slump in oil prices favors top notch retailers.
  • Zulily has a unique online model leading to fast growth.
  • The large stock declines in Zulily makes the stock cheap now that the retail sector has tailwinds.
Citigroup estimates that the recent slump in oil prices provides the world with a savings of $1.8 billion a day. Assuming oil prices stay low for several months at least, consumer spending should start swaying towards discretionary spending at retailers. Sure some consumers will use savings to buy the latest tech gadget, but a large portion of society will use it to restore a depleted wardrobe.

Read the full article at Seeking Alpha.


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




Monday, October 20, 2014

Update: IBM Continues Share Buybacks Despite Q3 '14 Earnings Miss


Summary

  • IBM reported Q314 earnings.
  • The stock is even more attractive after the sell off.
  • The weak earnings were not anticipated, but the large FCF and stock buybacks offset that weakness.
Prior to the open, IBM (NYSE:IBM) announced very weak Q314 earnings and the sale of the Microelectronics business to Globalfoundries at a large loss. The stock slumped over 7% to multi-year lows, but the company announced plans to continue the questionable stock buyback plan that should support the stock.

Read the full article at Seeking Alpha.


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



Saturday, October 18, 2014

Schlumberger Surprises Market With Upbeat Forecast


 Summary

  • Solid results from Schlumberger surprised the market.
  • Oilfield service firms are likely to maintain growth in an environment of higher production.
  • Oilfield service stocks offer atttractive values now that stocks have declined due to an overabundance of fears.
 With the release of Q314 earnings in the oil services sector, investors quickly learned that all companies in a sector aren't created equal. Not only that, but all companies involved in a particular industry aren't impacted the same way.

 Read full article at Seeking Alpha.


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

Friday, October 17, 2014

Does Saudi Arabia Hate Sandridge Energy?

 Summary

  • Saudi Arabia offered discounted oil pricing to Asian customers to increase market share.
  • The goal appears to harm marginal producers around the globe including producers in the US.
  • Sandridge Energy appears one of the vulnerable producers in the US with minimal profits from past capital spending plans.
 The recent decision by Saudi Arabia to offer discounted oil prices to Asian customers has grave indications for the modern domestic oil producers. Only a few months ago, domestic oil producers appeared destined for non-stop drilling growth with WTI crude prices hanging above $100. With the recent substantial declines in oil prices and growing supplies, one has to wonder if the OPEC led by Saudi Arabia isn't hoping to crush upstart shale produces in the U.S. that were previously drilling full speed ahead without any real regard to long-term prices. The risk OPEC faced is that higher oil prices would encourage further ramped up drilling in the U.S. and other regions.

 Read full article at Seeking Alpha.


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

Update: Google Misses Q3 '14 Estimates


 Summary

  • Google reported Q3 '14 earnings.
  • Investors should continue avoiding the stock.
  • The continued lack of network site growth and higher operating expenses was anticipated to hurt the stock.
 Another quarter and another earnings miss by Google (GOOG, GOOGL), yet investors shouldn't ignore the typical pattern of the stock heading higher. The online search leader has missed earnings estimates each of the last four quarters, and the stock blasted off towards all-time highs prior to the recent market sell-off. The key tenant to the earnings miss is that the numbers continue growing even if the company doesn't hit the targets, due mainly to higher expenses.

 Read full article at Seeking Alpha.


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

Thursday, October 16, 2014

Update: Netflix Q3 '14 Earnings


 Summary

  • Netflix reported Q314 earnings.
  • Investors should sell the stock trading at 100x current earnings.
  • The higher content costs without the subsequent revenue was anticipated as a major problem for the stock going forward.
 Netflix (NASDAQ:NFLX) reported Q314 earnings and provided guidance for Q414 that sent the stock down nearly $100 for a roughly 20% loss. The leading Internet TV provider continues to push forward with new original content that will pressure margins and especially free cash flow over the next couple of years without any major benefits from additional revenue per subscriber. Under that model, Netflix will undoubtedly add more subscribers, but the big question is the ability to cover those costs that continue to spiral higher.


Read full article at Seeking Alpha.


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

Is The Growth At Antero Resources Too Fast?


 Summary

  • Antero Resources provided Q3 operations update.
  • Strong production growth in contributing to a natural gas market headed to oversupply.
  • The stock isn't likely to hold up in an environment of lower energy prices.
 While the market was focused on another ebola case in Dallas and economic troubles in Europe, the news from the quarterly operations update at Antero Resources (NYSE:AR) was potentially lost in the shuffle. The Marcellus Shale focused natural gas producer is known for fast production growth since going public back about a year ago. The stock though surged on the news during a big down day for the markets and is rebounding strongly again with the market turnaround.

 Read full article at Seeking Alpha.


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

Update: Delta Air Lines Q3 Earnings Report


 Summary

  • Delta Air Lines reported Q3 '14 earnings.
  • The stock remains a strong buy.
  • The long-term tailwinds in the industry were anticipated to improve the earnings profile, but the short-term impacts of Ebola have been higher than expected.
 Prior to the market open, Delta Air Lines (NYSE:DAL) reported strong Q3 '14 earnings. The airline sector has been under significant pressure due to concerns about slowing global growth and Ebola fears. The company beat analyst estimates, but the key was the solid guidance for Q4.

 Read full article at Seeking Alpha.


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

Wednesday, October 15, 2014

Is TripAdvisor Attractive After A Year Of Consolidation?


 Summary

  • Large drop in the stock of TripAdvisor over the last two months makes the stock attractive.
  • New initiatives are leading to solid 30% revenue growth and future upside potential.
  • Short-term fears over travel reductions due to Ebola will give way to the benefits of lower oil prices.
 After skyrocketing from $30 back in November 2012 to $110 in March of this year, TripAdvisor (NASDAQ:TRIP) has now spent the last year consolidating. The online travel review site continues with fast expansion amidst global growth initiatives. The company faces many global travel headwinds including slowing growth and the Ebola outbreak, but none of the issues should impact long-term travel trends. The reduced oil prices should help the industry, but the consistent growth prospects should top the issues making the stock volatile.

 Read full article at Seeking Alpha.


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

Tuesday, October 14, 2014

Update: Iliad Ends T-Mobile Pursuit


 Summary

  • Iliad ends pursuit of acquiring a large position in T-Mobile.
  • Investors should dump the stock.
  • The original article anticipated that a positive outcome wasn't likely for a T-Mobile sell as time passed due to the ongoing price wars in the domestic wireless market.
 In a not very surprising move, Iliad (OTC: OTC:OTC:ILIAF) is dropping the intent to acquire a large portion of T-Mobile (NYSE:TMUS). Though it was well established that the French telecom provider was interested in paying a higher price, than the current stock price of T-Mobile at around $27, the company hasn't been able or willing to buy the whole company that is majority owned by Deutsche Telekom (OTCQX:DTEGY).

 Read full article at Seeking Alpha.


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

Monday, October 13, 2014

Zynga: Market Missing Mobile Progress


 Summary

  • New Words With Friends mobile game appears a hit in the making.
  • Zynga is slowly increasing success on mobile games.
  • The stock crashed close to the all-time lows providing for the ultimate long-term entry point due to limited downside risk.
 Oddly, Zynga (NASDAQ:ZNGA) is plunging toward all-time lows, but the company is starting to make some progress in mobile. The lack of success with transitioning from the Facebook (NASDAQ:FB) platform to mobile apps is the prime reason the stock is down at these lows.

 Read full article at Seeking Alpha.


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

Thursday, October 9, 2014

Update: Hawaiian Airlines Reports September Traffic Numbers


Summary

  • Hawaiian Airlines reported September traffic numbers.
  • The stock remains a strong buy.
  • Improved operations were anticipated from moderating capacity growth.
Hawaiian Airlines (NASDAQ:HA) reported more outstanding traffic statistics for September. The solid numbers don't explain why the stock was especially weak during the month and shows the disconnect between the fears in the market and the overall improving fundamentals for the airline sector. After peaking over $16 in early June, the stock now trades near $13.

Read the full update at Seeking Alpha.


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



Friday, September 26, 2014

American Airlines Group: Fuel and Taxes


Summary

  • American Airlines to benefit from reduced fuel costs and consumption.
  • American Airlines won't face income tax payments until 2016, at the current income level.
  • The stock is extremely cheap with the above tailwinds helping offset any global slowdown concerns.
Typically people focus on two certainties in life: death and taxes. For an airline like American Airlines Group (NASDAQ:AAL), the certainties are fuel and taxes. Fuel accounts for the largest expense line for airlines. The ability to lower fuel consumption or the cost per gallon will have a material impact to the bottom line. For taxes, the airlines are entering a new era of dealing with income taxes after decades of loses that eliminated the need to pay the government.

Read the full article at Seeking Alpha.


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




Tuesday, September 23, 2014

Lessons Learned From The Yahoo Saga


Summary

  • Alibaba surging to more than $93 on the first trading day provides substantial gains for Yahoo.
  • Solid earnings should've kept investors owning Yahoo during the lean years for the stock.
  • The inability to turn operations around probably caps the stock gains from here with the Alibaba gains captured.
With the recent Alibaba (NYSE:BABA) IPO providing riches for Yahoo (NASDAQ:YHOO), it's worth taking the time to discuss the lessons learned from the stock over the last decade. Though the stock has surged since the end of 2012, most long-term shareholders haven't seen any real gains with the stock, only now flat with levels reached back in 2006. In reality, a lot of investors probably dumped the stock despite knowing the potential gains in the Alibaba investments.

Read the full article at Seeking Alpha.


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




Tuesday, September 9, 2014

Staying Invested In Zynga

Summary

  • New mobile game releases continue to struggle.
  • Assets including cash prevent significant downside risks.
  • Results from other mobile games continue to suggest that brands and franchises have an inside tract to success.
 While smaller mobile game rival Glu Mobile (NASDAQ:GLUU) continues producing daily download stars, Zynga (NASDAQ:ZNGA) can't seem to catch a break. The company recently released a game into a new genre and updated a long-term winner with limited success on the daily charts.


  Read the full article at Seeking Alpha.


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

Monday, September 8, 2014

Top 10 Net Payout Yield Stocks For September 2014


Summary

  • Top net payout yield stocks outperformed the market in August.
  • The top ten net payout yield stocks average 12.6% yields to start August.
  • CF Industries and Illinois Tool Works jumped to the top of the list with massive stock buybacks.
 This article is a continuation of a monthly series highlighting the top net payout yield (NYSE: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.


Read the full article at Seeking Alpha.


Disclosure: Long CTL, KSS, NLY, NOC, SDRL, TRV, WLP. Please review the disclaimer page for more details.



CenturyLink: Riding Buybacks And Video Customers Higher


Summary

  • CenturyLink continues growing high-speed Internet and video customers.
  • The company is following the path of DirecTV with strong buybacks.
  • Stock remains attractive with a net payout yield of 10%.
 The recent agreement by AT&T (NYSE:T) to purchase DirecTV (NASDAQ:DTV) for nearly $50 billion highlights a couple of trends that investors can utilize with other stocks. The obvious trend is that video customers are in high demand these days. The not so obvious trend is that stock buybacks are once again proven to be an effective tool of value creation for shareholders.


 Read the full article at Seeking Alpha.



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

Sunday, September 7, 2014

Frontier Communications: Capital Structure Doesn't Make Sense


Summary

  • Frontier Communications has a capital structure too focused on maintaining a historical dividend.
  • High debt load causes interest expense to hit operating income.
  • Stock is reasonably valued but the large stock gains leave limited upside from these levels.
 Reviewing the recent results of Frontier Communications (NASDAQ:FTR) and the capital structure just doesn't make sense. Sure the local communications provider has stable revenues and cash flows that provide a level of opportunity, it doesn't make any sense for the company to continue paying lofty dividends while under a large debt burden.


Read the full article at Seeking Alpha.


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

Friday, September 5, 2014

Update: Delta Air Lines' August '14 Traffic Report


Summary

  • Delta released disappointing August traffic numbers.
  • Stock remains a strong buy.
  • The original investment thesis anticipated hiccups from Russia and Ebola.
Delta Air Lines (NYSE:DAL) plunged on Wednesday following the release of traffic and operational numbers for August. While the numbers were at the low-end of previous guidance, the market should've already adjusted for an expected impact from the ongoing hostilities in Ukraine and the Ebola outbreak in Africa. With the expected headwinds and a stock trading sideways during the strong summer travel season, the sell-off suggests the market over reacted.

Read the full update here.


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




Monday, September 1, 2014

Sears Holdings: Cost Burdens Weigh On The Stock


Summary

  • Another quarter, another disappointment from Sears Holdings.
  • Cost pressures drove losses higher.
  • Some silver linings existed in the details of the Q2 numbers that provide opportunities for the future.
Whether good or not, Sears Holdings (NASDAQ:SHLD) finally completed a quarter where revenue wasn't the real issue at the retailer. Sure the company saw a substantial decline in sales, but the majority of that decline came from shuttering stores and spinning off Lands' End (NASDAQ:LE). Most of the headlines from the media focused on the declining revenue trends and not the real issue which is duplicate costs for the online and promotional strategies to transform the retailer.

Read the full article at Seeking Alpha.


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




Seadrill: Riding The Long-Term Wave


Summary

  • Jack-up market fears overblown.
  • Consistent dividend increases provide for stable income.
  • Seadrill investors should sit back and enjoy the large dividend while waiting on capital gains.
For a market driven by assets that last over 30 years, the offshore drilling segment of the stock market is sometimes extremely focused on the short-term. Instead of focusing on the day-to-day operations and day rate cycle, investors should focus on the age of the fleet and the ability of management to adapt.


Read the full article at Seeking Alpha.


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



Zoes Kitchen: Son Of Chipotle?

Guess this was missed from a few weeks back, but Cramer did an interesting analysis of Zoes Kitchen (ZOES) compared to Chipotle Mexican Grill (CMG) back when it went public. Agree with Cramer that Chipotle will never be matched, but if anybody has a chance of reaching half the size of Chipotle it would be Zoes that grew revenue 54% during Q2. Its worth watching for those interested in the concept.





With roughly 130 stores, Zoes has a long runway to hit what is probably a floor of 1,600 units.


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







Friday, August 29, 2014

Sobering News For Clean Energy Fuels


Summary

  • More evidence of a slow shift to natural gas as a transportation fuel for trucks.
  • WSJ uncovered some unexpected roadblocks to the switch to natural gas.
  • Clean Energy Fuels continues to face an uphill climb.
The shift to natural gas fueled trucks has taken a lot longer than most expected causing the stock of Clean Energy Fuels (NASDAQ:CLNE) to become a hotly debated topic. The sector soared to highs back in early 2012, but it eventually plunged to new lows when the market forecasts for growth were never met.

Read the full article here.


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



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. 



Tuesday, August 5, 2014

Don't Go Loco And Ignore Zoe's Kitchen


Summary

  • The excitement over El Pollo Loco should point investors back to Zoe's Kitchen.
  • Zoe's Kitchen has very favorable growth numbers.
  • If any stock presents the ability to replicate the growth of Chipotle, it is Zoe's.
The surprising success of El Pollo Loco Holdings (NASDAQ:LOCO) following their IPO last week leaves me wondering why Zoe's Kitchen (NYSE:ZOES) hasn't seen the same level of excitement.

Read the full article at Seeking Alpha.


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




Saturday, August 2, 2014

Is Sprint Dead Without T-Mobile?


Summary

  • Sprint reported Q214 numbers that beat estimates.
  • Some trends below the headline numbers are discouraging.
  • Expect the stock to struggle unless it merges with T-Mobile to reduce the competitive pricing environment.
The latest quarterly report from Sprint (NYSE:S) shows some improvements in the cost structure leading to improved results. Unfortunately for investors, hidden in the details are some concerning trends suggesting the company might need the rumored merger with T-Mobile US (NYSE:TMUS) to reduce the competitive pricing environment.

Read the full article at Seeking Alpha.


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




Wednesday, July 30, 2014

Facebook: Concerning User Trends March On

Summary

  • Facebook stock remains disconnected from user trends.
  • ARPU gains making shorting the stock difficult for now.
  • New products and apps remain wild cards.
The monetization machine of Facebook (NASDAQ:FB) continued in full force during Q214. The machine is great at showing better ads to users and collecting higher fees from advertisers. What the social network site hasn't done is indicate to the market that users are locked into the service for eternity.

Read the full article at Seeking Alpha.


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




Tuesday, July 29, 2014

Apple's Xiaomi Problem


Summary

  • Xiaomi is increasingly becoming a threat to Apple outside China.
  • Long-term growth potential in Asia appears capped to very high-end users.
  • Regardless, Apple's stock offers the potential for market type gains.
The biggest problem facing Apple (NASDAQ:AAPL) long-term is that it's losing the competitive gap to mid-level smartphone and tablet makers. The company has a very loyal following likely to continue to purchase the high-end devices for the quality of the phone and the brand identification, but the growth potential could be limited without the ability to expand the market in emerging markets.

Read the full article at Seeking Alpha.


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




Higher Expenses Or Not, Baidu Is Cheap


Summary

  • Baidu easily exceeded Q214 earnings estimates.
  • The stock trades at a favorable valuation with multiple expansion.
  • Chinese search stocks in general remain cheap.
When last covering Baidu (NASDAQ:BIDU), the stock was under pressure due to fears over SEC bans on auditors in China. At the time in January of 2013, the stock slipped below $160 before an eventual bottom near $140 that April. Investors were encouraged to focus on mobile search growth and ignore the over flamed SEC concerns. Fast-forward to today and the stock is surging beyond $225 based on fast mobile growth. The crazy part is that investors might not be too late to invest in this story.

Read the full article at Seeking Alpha.


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




Does a New CFO and Mobile Advertising Solve the Problems at Twitter, Inc.?


The recent hiring of a rock star Wall Street banker as the new CFO of Twitter  (NYSE: TWTR  )  has investors buzzing about the company. After a rough spring that saw the stock collapse to lows around $30 following the IPO ramp to $75, Twitter finally stabilized and gained some legs in the market. On top of the big hire, Twitter also continued its spree of buying up mobile advertising firms, including the recent purchase of TapCommerce.

Social media companies that started off as free-to-use services without advertising face a major dilemma: how to appropriately monetize user traffic without alienating the user base. Facebook (NASDAQ: FB  ) dealt with these issues, and as a result the company made a recent move to purchase an advertising technology firm in order to improve ads on the site. But the ultimate question is whether these social media giants are doing enough to attract users with site enhancements focused on advertising efforts.

Read the full article here.


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


Update: Hawaiian Holdings Q2 '14 Earnings


Summary

  • Hawaiian Holdings reported Q2 '14 earnings.
  • Earnings confirm original thesis that cost savings would drive earnings higher.
  • The improved earnings were anticipated to drive the stock to $13.50 and now much higher.         

Read the full article at Seeking Alpha. 


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



Monday, July 28, 2014

Update: United Airlines Q2 '14 Earnings


Summary

  • United Airlines reported Q2 '14 earnings.
  • The earnings confirm original thesis that cost savings would drive earnings higher.
  • The improved earnings were anticipated to eventually drive stock gains.
Read the full article on Seeking Alpha. 


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



Friday, July 25, 2014

Halliburton Sees a Significant Market Turn

The CEO of Halliburton (NYSE: HAL  ) went on record during the first-quarter earnings call that he saw a turn in the North American energy markets. In fact, the CEO hadn't been that bullish on the area since late in 2011. He recently followed that up with an even more bullish claim that the market has definitely turned to full-growth mode. The question for investors is what to do with this information now that the stock has already soared to all-time highs and is trading up to $74 from only $40 this time last year.

Read the full article here.


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




Thursday, July 24, 2014

Southwestern Energy's Shale Problem

In the middle of another strong earnings report highlighted by explosive Marcellus growth, Southwestern Energy (NYSE: SWN  ) detailed a troubling problem for the company and the industry as a whole. The company is a leading driller for natural gas in both the Fayetteville Shale in Arkansas and the prolific Marcellus Shale in Pennsylvania.

Read the full article here.


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



The Staying Power of Kim Kardashian Can Propel Glu Mobile Shares Higher

The initial success of the Kim Kardashian game has surprised even this owner of Glu Mobile (NASDAQ: GLUU  ) stock. It's another sign that the small game developer continues to advance its mobile gaming platform mostly focused on action shooter games such as the previous successful Deer Hunter 2014. The staying power of Kim Kardashian could propel the game, and the stock, into the upper echelon of gaming stocks that includes King Digital Entertainment plc (NYSE: KING  ) and Zynga (NASDAQ: ZNGA  ) that sport much larger stock valuations.

Read the full article here.


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




Is Chart Industries Finally Charting a Higher Course


 Since peaking in October, Chart Industries (NASDAQ: GTLS  ) has traded in a downward trajectory. The promise of liquefied natural gas, or LNG, demand hasn't paid off as expected, leading to a large sell-off in the stock. At the current price of $80, the stock trades at a similar level to when it first crossed $70 all the way back at the start of 2012. Similar situations in the market offer a level of intrigue considering the market is now less interested in a once-hot stock potentially offering a bargain. The investor has to dig into the story to derive whether the problem is the company or the market.

 Chart Industries is mainly seen as a manufacturer of LNG equipment, but the company has recently been hit by declines in the smaller medical division. Mainly though, the company continues to face the struggles of a domestic LNG market that hasn't expanded fast enough and has also hit shares of Clean Energy Fuels  (NASDAQ: CLNE  ) and Westport Innovations (NASDAQ: WPRT  ) . The group in general fell on tough times to start 2014, but the good news is that Chart Industries has one key metric that sets it apart from the group.

 Read the full article here.


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

Wednesday, July 23, 2014

Expanding Margins Will Lead Weatherford International Higher


Recently, Weatherford International (NYSE: WFT  ) sold drilling assets in Russia and Venezuela to further transition away from unprofitable businesses that never achieved the expected margins. Investors can quickly compare the numbers to the solid international margins of Schlumberger Limited (NYSE: SLB  ) and Halliburton (NYSE: HAL  ) to quickly grasp how far off course Weatherford had steered in the process of expanding internationally.

The oilfield services laggard has turned to improving operations after a few years of working out accounting and tax issues. Weatherford has taken several previous steps to improve operations with the hopes of growing margins. Even after the recent gains in the stock, Weatherford continues to trade at low revenue multiples, showing how much of an impact the low-margin drag has had on the stock.

Read the full article here.


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




Tuesday, July 22, 2014

The Worrisome Wireless Pricing Wars


A couple of notable trends are making investing in the domestic wireless space a concern. The stocks trade at multiyear highs and a pricing war triggered by T-Mobile  (NYSE: TMUS  ) is causing average revenue per user, or ARPU, to decline -- at least in the case of AT&T (NYSE: T  ) . The combination usually doesn't go hand in hand , especially considering the domestic market is virtually saturated with users, causing Verizon Communications  (NYSE: VZ  ) to struggle with customer additions since it hasn't entered the pricing wars.

Any pricing war should always alert investors to pending stock losses, but with AT&T trading sideways for nearly two years now do investors really have cause for concern?

Read the full article here.


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



Sunday, July 20, 2014

Why Pay up for Transocean?

The July fleet status report for Transocean, Ltd (NYSE: RIG  ) again provides an example of why the historical leader in the deepwater drilling sector is no longer the best investment going forward. The deepwater driller famously uses the website deepwater.com for its corporation, but it continues to struggle with old rigs in a market that demands the most modern capabilities.

Read the full article here.


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




Friday, July 18, 2014

Is T-Mobile Worth More?


With once struggling domestic wireless provider T-Mobile US  (NYSE: TMUS  ) now worth over $26 billion, investors should wonder if the stock has any value left. The company is rumored to be a buyout target of Sprint  (NYSE: S  ), yet its quick rise from $7.50 to nearly $33 in a span of two years should raise valuation questions.

On the backs of wireless mergers, including its own consolidation with Metro PCS, T-Mobile is now secure in a strong fourth position of the domestic wireless market. The stock now trades at nearly 1 times revenue estimates, suggesting that all of the easy money has already been made. Further, notable investor firm Omega Advisors exited its position during the first quarter further, questioning if the stock has upside value.

Read the full article here.


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



Here's Why Start-Up Issues Aren't a Concern for Ocean Rig

For a relatively young company forecasting fast growth, offshore drilling contractor Ocean Rig (NASDAQ: ORIG  ) trades at a very attractive earnings multiple. The company continues to bump along with start-up issues from new drillships, but it appears poised to produce strong results going forward based on a solid contract book and an improving deepwater drilling market.

Read the full article here.


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



Thursday, July 17, 2014

Antero Resources Corp: More Growth Than You'd Believe


The amount of long-term growth forecasted by Antero Resources Corporation (NYSE: AR  ) is almost unheard of outside of social media stocks, especially for a company with a greater than $15 billion market cap. The Marcellus and Utica Shale natural gas exploration and production firm is probably mostly unknown by investors after going public last October.

Despite production growth rates of over 100% and heading toward nearly 950 MMcfe/d during 2014, the company continues to forecast growth rates in excess of 50% in both 2015 and 2016. At this point, Antero appears to be overcoming the infrastructure bottlenecks that have disturbed Marcellus production by Cabot Oil & Gas (NYSE: COG  ) and Utica growth at Gulfport Energy Corp (NASDAQ: GPOR  ). The biggest question is whether the growth at Antero can be maintained as guided.

Read the full article here.


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



Yammering to Invest in Jive Software


The recent collaboration deal with Cisco Systems (NASDAQ: CSCO  ) sparks an interest in investing in Jive Software (NASDAQ: JIVE  ) again. The social business software provider offered an interesting investment concept when it came public back at the end of 2011, yet the company hasn't been able to match the success of the consumer social media stocks.

The software provider is focused on the social business platforms of portals, social intranets, and external communities that allow employees and customers to better collaborate and engage. Unfortunately, Jive Software has yet to hit the tipping point, with revenue growth only clocking in at 21% in the first quarter.

Read the full article here.


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




Tuesday, July 15, 2014

Keeping an Eye on the Seventy Seven Energy Spin-Off


With the spin-off from Chesapeake Energy (NYSE: CHK  ) finally here, investors can start watching Seventy Seven Energy (NYSE: SSE  ). The oilfield services firm has had limited publicity typical of spin-offs, providing the opportunity for an attractive valuation.

One important thing investors need to understand about spin-offs is that the new companies typically come out in disarray. The parent company wouldn't typically perform the split up if it weren't for a desire to unload an underperforming unit, or at least one viewed as undervalued. In the case of Chesapeake Energy, the natural gas exploration and production firm was originally hoping to sell the company for several billion to help reduce debt at the corporate level. The spin-off was the last option.

Read the full article here.


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



Monday, July 14, 2014

Huge Production Growth to Continue at Rice Energy


 For investors that thought the 20% sequential increase in production during the fourth quarter was substantial, Rice Energy (NYSE: RICE  ) easily surpassed that number during the first quarter of 2014. Possibly more shocking is the possibility that the company could lapse the 36% sequential growth for the first quarter during the current quarter.

 Rice Energy is turning into a prolific grower in the Marcellus Shale, and the first-quarter earnings provided some interesting insights for both the company and the region. In total, the company saw production surge to 209 MMcf/d to reach growth of 135% relative to the first quarter of 2013 with well results continuing to improve.

 Read the full article here.

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

Comstock Resources: More Than Meets the Eye


 Back in April I argued that Comstock Resources (NYSE: CRK  ) was a hidden play on LNG exports from the Gulf Coast due to sizable reserves in the Haynesville shale with close proximity to the coast. The company, though, appears to have much more than natural gas resources based on the recent results of its first well in the East Eagle Ford shale.

 Comstock Resources continues shifting toward oily production with added positions in the Eagle Ford and Tuscaloosa Marine Shale, or TMS. While total production isn't increasing that much due to a 30% year-over-year drop in natural gas produced during the first quarter, the higher realized prices along with more oil production dramatically improved results.

 Read the full article here.


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

Did Whiting Petroleum Corp Just Buy Kodiak Oil and Gas Corp on the Cheap?


 The revelation that Whiting Petroleum Corp (NYSE: WLL  ) only paid a 5% premium to average prices over the last 60 days to purchase the stock of fast-growing Bakken producer Kodiak Oil and Gas Corp (NYSE: KOG  ) was clearly unusual. Typically, a growing company doesn't accept a buyout without a substantial premium. In this case, the deal creates a formidable producer in the Bakken to rival Continental Resources (NYSE: CLR  ) .

 Is it possible that Kodiak shareholders benefited more from accepting a meager premium?

The deal Whiting Petroleum agreed to buy Kodiak Oil and Gas for .177 shares of WLL per KOG share, or the equivalent of $13.90 per share based on the July 11 closing price of Whiting. Though the deal offers a 5% premium above the average of price of Kodiak over the last 60 days, any investor in the stock might be disappointed that it accepted an offer below the prior closing price. The stock, though, is rebounding 5% as of this writing, suggesting that maybe accepting an offering around current market prices does allow shareholders to participate in the potential upside of the new entity.


 Read the full article here.


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