Thursday, April 30, 2015

Twitter Becomes Interesting After Stock Collapse


Summary

  • Twitter reported disappointing Q1'15 revenues.
  • The company generated huge revenue growth that wasn't exactly bad.
  • The valuation becomes interesting after a nearly 25% drop.
Despite Twitter (NYSE:TWTR) being a favorite app to use and producing rather fast revenue growth, the stock was always extremely expensive. After the micro-blogging service reported a Q1 miss and depressing guidance for the rest of 2015, the stock drop provides an opportunity.

Read the full article at Seeking Alpha.


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



AT&T: Still Facing Pressure


Summary

  • AT&T reported Q1'15 earnings that exceeded analyst EPS estimates.
  • The reported numbers were a decline from the previous year due to lower margins from declining phone ARPU.
  • The wireless provider isn't preferred at these levels with FCF and mounting debt levels from the DirecTV deal.
  When reviewing the quarterly numbers for AT&T (NYSE:T), one needs to keep in mind that the quarterly beat was still a reduction from prior-year levels. The wireless provider produced contrasting numbers to the earnings growth delivered by Verizon Communications (NYSE:VZ).


 Read the full article on Seeking Alpha.


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

Sunday, April 26, 2015

Interactive Multi-Media Auction: Live-Streaming Art Auctions


Summary

  • Interactive Multi-Media Auction provides a unique opportunity to invest in live-streaming art auction events.
  • The developing company provides a rare ability to invest in a company focused on the growing popularity of online art auctions.
  • IMMA is a high-risk stock only appropriate for a small portion of a diversified portfolio.
   The fine art category has a long history of a strong investment sector providing wealthy individuals and companies another asset class for diversification away from stocks and bonds. Investors in the stock market though have limited opportunities to take advantage of that growth and opportunity.

 Read the full article on Seeking Alpha.


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

ConocoPhillips: Protecting The Dividend Without Cash Flow


Summary

  • ConocoPhillips continues on a plan to cash flow neutrality by 2017.
  • The company plans to cut capex and operating expenses in order to continue affording the large dividend.
  • Due to high dividends and limited stock losses during the oil collapse, the stock isn't attractive for new investors.
   During the analyst day, ConocoPhillips (NYSE:COP) provided an interesting shift in strategy to unconventional drilling in North America. While at the same time, the energy exploration and production company continued sticking to a long held policy that doesn't benefit the stock long term.


Read the full article on Seeking Alpha.


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

Saturday, April 25, 2015

Caterpillar: Yields That Impress


Summary

  • Caterpillar reported Q1 2015 earnings that smashed analyst estimates.
  • The company continues to face a tough environment for construction and mining equipment.
  • The stock offers some of the highest net payout yields in the market, providing a catalyst for a stock trading near multi-year lows.
Ultimately, the market didn't respond too well to the quarterly results of Caterpillar (NYSE:CAT). Despite a huge beat, the stock actually traded slightly down in a positive market. While investors fret over the future orders for mining equipment, the yields are too attractive to ignore.

Read the full article at Seeking Alpha.


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




American Airlines: Keep Until The Perception Changes


Summary

  • American Airlines reported record Q1 profits and margins.
  • The airline forecast record margins approaching 20% during Q2 despite several strong headwinds.
  • American remains the cheapest stock in the industry and the sector in general.
Not many stocks in the market trade substantially below market multiples, beat analyst estimates and forecast record Q2 margins. That's the case for most airlines and especially American Airlines Group (NASDAQ:AAL). Are the airlines still trading at low multiples due to the reality of the competitive sector or a perception of the past that won't go away?

Read the full article at Seeking Alpha.


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




Friday, April 24, 2015

Freeport-McMoRan: Focus On Copper Prices, Not Earnings


Summary

  • Freeport-McMoRan reported Q1'15 results that were slightly better than expected.
  • Despite attempts of diversifying into oil and gas, the company remains squarely focused on copper.
  • The negative prospects for copper prices and low cash flows leave us on the sidelines for now.
   After reviewing the Q1'15 earnings for Freeport-McMoRan (NYSE:FCX), it quickly becomes clear that investors should shift focus away from earnings and back onto copper prices. Outside of concerning debt levels and capital expenditures, the future of the miner and more importantly the near-term stock price is all dependent on copper.


Read the full article on Seeking Alpha.


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

Weatherford: Disappointment Returns


Summary

  • Weatherford reports Q1 2015 results that disappoint.
  • The oilfield services firm is losing market share during the downturn.
  • Investors should use the stock rally to unload the stock.
When the oil price started collapsing, Weatherford International (NYSE:WFT) was one of the first stocks dumped from my portfolio. The portfolio wasn't even concentrated with energy stocks in the first place due to the distant fourth oilfield services firm having a history of disappointing the market. Weatherford had recently produced solid results during Q4, but it didn't seem like the stock to own in a weak market.

Read the full article on Seeking Alpha.


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




Wednesday, April 22, 2015

Amazing Numbers From Delta Air Lines


Summary

  • Delta Air Lines reported Q1'15 earnings that beat the estimates despite losses associated with fuel hedges.
  • The airline continues to face more headwinds than perceived by a market only focused on lower market fuel costs.
  • Delta continues to trade at valuation multiples substantially below other companies.
While currency headwinds and a few fare wars grab market attention, airlines like Delta Air Lines (NYSE:DAL) continue to report exceptional numbers. The market appears more concerned with the potential for rebounding fuel costs than the exceptional value presented by the stock.

Read the full article at Seeking Alpha.


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




Is It Possible To Justify The Value On Under Armour?


Summary

  • Under Armour reported solid Q1'15 earnings with strong revenue growth.
  • The athletic retailer continues to obtain success from endorsements of athletes before they become a huge success.
  • The forecasted 2015 numbers and future growth potential doesn't justify a stock trading over 75x 2015 EPS estimates.
   The recent success of athlete endorsers Jordan Spieth at the Masters and Steph Curry during the current NBA season are no doubt exciting and unexpected benefits to Under Armour (NYSE:UA). Investors though need to check the enthusiasm over the recent success of these two athletes. It takes continued success and time to become a Tiger Woods or LeBron James.


 Read the full article on Seeking Alpha.


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

Saturday, April 18, 2015

American Express: Profits Continue Flowing


Summary

  • American Express reported Q115 earnings that easily surpassed analyst estimates.
  • The company continues producing solid profits and returning capital to shareholders.
  • The stock is expensive considering the lack of growth, but the situation is hardly dour.
Despite troubling headwinds, the profits at American Express (NYSE:AXP) continue flowing. The future of the premium credit card network doesn't appear nearly as dour as predicted by headlines following recent well-publicized customer defections.

Read the full article on Seeking Alpha.


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




Thursday, April 16, 2015

Bank Of America: Don't Over-Analyze Results


Summary

  • Bank of America reported disappointing Q1'15 results.
  • The bank remains a highly rate sensitive play, suggesting investors shouldn't over-analyze quarterly results due to declining rates.
  • Due to cost management and a cheap value, Bank of America remains an attractive pick.
With the Q1'15 earnings release at Bank of America (NYSE:BAC), a lot analysts will analyze every detail to the max. The stock is trading slightly down on the results as investors are disappointed with the numbers, especially on the revenue side. The real question is whether investors should compare the results to analyst expectations or focus more on the large quarterly profits for a stock with a market valuation of $166 billion.

Read the full article on Seeking Alpha.


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




Saturday, April 11, 2015

Lorillard: Time To Exit


Summary

  • Lorillard and Reynolds American merger approaches FTC decision.
  • Lorillard hit new highs over $70 this week.
  • With a high PE multiple, the downside risk appears to far outweigh any benefits from holding the stock to collect the merger discount.
After years of owning Lorillard (NYSE:LO) and benefiting from high dividends and stock buybacks, the recent stock action presented the opportunity to exit the stock. In addition, the current stock price faces risks from any issues with the Federal Trade Commission blocking the Reynolds American (NYSE:RAI) merger or requiring further divestitures beyond those already proposed in the transaction.


Read the full article on Seeking Alpha.


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




Is ConocoPhillips Ramping Up Production?


Summary

  • ConocoPhillips announced a big shift in capital spending from large-scale projects to short-cycle projects.
  • The company continues to maintain capital spending at around $11.5 billion established back in January that will keep production growth in the 2% to 3% range.
  • The biggest concern is that ramped up domestic production could face pricing pressure with the inability to obtain export to international markets.
  • Stock remains expensive, potentially propped up by a large 4.4% dividend yield.
In a surprise move, ConocoPhillips (NYSE:COP) announced at the annual Analyst and Investor meeting that the energy producer was shifting capital spending to domestic shale areas. The company had previously announced plans to cut spending from domestic unconventional areas (see ConocoPhillips: Key Takeaways From Guidance) and the general market mindset was that these areas offered a lower return due to higher costs and lower production.

Read the full article on Seeking Alpha.


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




Thursday, April 9, 2015

Habit Restaurants: Buy This Dip


Summary

  • Habit Restaurants surprises analysts with strong comps.
  • The company filed for selling shareholders to unload roughly 22% of outstanding shares.
  • The combination of the news provides an ideal time to buy a premier restaurant concept.
After the close on Tuesday, Habit Restaurants (NASDAQ:HABT) released a couple of items that make investing in recent IPO stocks very unpredictable. Smashing conservative guidance while at the same time launching a secondary offering will likely leave the stock spinning in place for some time. The fast casual burger joint has traded mostly flat after the initial IPO hype wore off and investors question the valuation.

Read the full article at Seeking Alpha. 


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




Wednesday, April 8, 2015

Chuy's: Not As Bad As Perceived


Summary

  • Chuy's offers the unique opportunity for a fast-growing restaurant stock trading at multi-year lows.
  • The Tex-Mex concept remains relatively small with only 61 locations in 14 states.
  • The slowing unit development plan, along with a better real estate strategy, will help ramp up new locations faster and improve margins in 2016.
  • Chuy's stock isn't cheap, but it offers an attractive valuation with annual growth continuing at the nearly 20% clip.
With falling oil prices, most restaurant stocks got a boost in consumer spending and higher stock prices. One restaurant concept actually trading near multi-year lows is Chuy's Holdings (NASDAQ:CHUY). The concept has seen the stock hammered 50% after a very successful run after the IPO back in 2012.

Read the full article on Seeking Alpha.


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




Monday, April 6, 2015

Top 10 Net Payout Yield Stocks For April 2015


  • The top ten net payout yield stocks underperformed the market in March due to a couple of weak individual stocks.
  • The top ten net payout yield stocks averaged yields of 13.3% to start April.
  • Motorola Solutions continues to hold the highest yield now at 18.7%.
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 utilized in part to make investment decisions for the Covestor model that has beaten the S&P 500 for four consecutive years. Please review the original articles for more information on the NPY concept.

Read the full article on Seeking Alpha.


Disclosure: Long HIG, IBM, MSI, NLY, NTAP, TRV, VIAB. Please review the disclaimer page for more details. 




Sunday, April 5, 2015

Halliburton: One Step Closer


Summary

  • Shareholder approved the merger of Halliburton and Baker Hughes.
  • Halliburton is moving forward with asset sales suggesting the U.S Justice Department is working towards a positive solution.
  • The new Halliburton still trades at an attractive valuation providing potential alpha for the sector with the ultimate return based on oil prices.
The recent shareholder approvals by Halliburton (NYSE:HAL) and Baker Hughes (NYSE:BHI) place the megadeal one step closer to completion. The current oil market weakness causing the onshore drilling rig count reductions continue to hide the shareholder benefits of this merger. Not to mention, the current downturn is allowing both firms to cut costs that could improve margins during the next market boom.

Read the full article on Seeking Alpha.


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




Friday, April 3, 2015

The Intriguing Buyback Potential Of AIG


Summary

  • AIG registered with the SEC to unload its 46.0% position in AerCap.
  • AIG will obtain proceeds of roughly $4.3 billion at current prices.
  • The history of large buybacks and a stock trading below book value make AIG an intriguing pick with a catalyst for 2015.
The promising prospects for a larger stock buyback pique our interests in American International Group (NYSE:AIG). The insurance company already has a solid buyback program, but the disposal of a large investment could provide the funds needed to accelerate the buyback plan at a time that the stock still trades below book value.

Read the full article at Seeking Alpha.


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