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.