Thursday, August 27, 2015

Avago: Business As Usual


  • Avago provided generally bullish commentary on the business environment including China.
  • The actual news didn't warrant the $50 collapse seen in the stock before the recent rally.
  • The stock is exceptionally cheap even with the merger synergies with Broadcom.
The recent collapse in the stock of Avago (NASDAQ:AVGO) would suggest something other than consistent end-user demand. The semiconductor company provides a great view into general demand in the wireless handset and enterprise storage markets with a quarter that ends in July. Not to mention, the guidance factors in actual August demand form a better picture of the market than an email from Tim Cook regarding one particular handset provider for the premium market.

Read the full article on Seeking Alpha.


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


                     

Monday, August 24, 2015

Apple: Best Tasting Bear Ever?


  • Apple trades down to correction territory with a loss in excess of 20%.
  • The data points don't suggest Apple has any growth problems in China.
  • With an enterprise value drop of nearly 30%, Apple is extremely tasty at below 9x EPS estimates.
The big shock in the market selloff is that Apple (NASDAQ:AAPL) had already reached bear market territory before the dramatic selloff at the open on Monday. Like other tech stocks, Apple has been hard hit by fears of a slowdown in China. The reality though suggests that the fears are overblown making the stock collapse perplexing.

Read the full article on Seeking Alpha.


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



Thursday, August 20, 2015

Ambarella: Too Much Drone Hype


  • Ambarella maintains a lofty valuation due to the potential for drones.
  • The excitement over the drone market doesn't match the potential near-term revenue.
  • Ambarella remains a good company with a stretched valuation that offers limited upside for investors.
Prior to the recent selloff in Ambarella (NASDAQ:AMBA), the market had gotten extremely excited over the potential of drones. The maker of high powered, video compression chips has been on fire over the last couple of years on the initial connection with GoPro (NASDAQ:GPRO) cameras and now drones.

Read the full article on Seeking Alpha.


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



Wednesday, August 19, 2015

NXP Semi: Another Gift Opportunity


  • NXP Semi has dipped back to recent lows following a major rally on the Freescale Semi deal.
  • The merger places the new entity as a leader in the growing connected car segment that provides a major growth catalyst with the recent hacking scandals.
  • The stock is decidedly cheap based on the benefits of the merger that is heading towards completion.
The weak stock market is providing opportunities to buy quality names at discounted prices. One such name is NXP Semiconductors (NASDAQ:NXPI) that helped spook the market with discussions of a reduction in order visibility when reporting Q2 numbers.

Read the full article on Seeking Alpha.


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




Monday, August 17, 2015

King Digital: Be Patient


  • King Digital continues to struggle to repeat the success of mega-hit Candy Crush Saga.
  • Though the stock offers an attractive value, it isn't likely to traded positively until the negative trends reverse.
  • Investors should patiently watch the stock for a better entry point and ignore the market that value doesn't exist in the mobile-game sector.
The mobile game industry continues to get a bad rap. The latest quarterly results from King Digital Entertainment (NYSE:KING) only seem to enhance that negative perception. What the market really misses is that stocks like King Digital and Zynga (NASDAQ:ZNGA) went public after a hit game or two spurred incredibly high valuations and revenues that weren't sustainable in the short run.

Read the full article on Seeking Alpha.


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




Saturday, August 15, 2015

Hartford Doesn't Need A Buyout


  • Hartford is too cheap to accept a buyout with a limited premium.
  • The consistent earnings profile and huge capital return plan position shareholders for solid returns going forward.
  • The recommendation remains to own Hartford based on value.
With an intra-day spike to near $51 on high volumes, The Hartford (NYSE:HIG) is under accumulation based on rumors of a buyout offer. Back when Chubb Corporation (NYSE:CB) accepted a buyout offer, Hartford was listed as a prime buyout target in the P&C space so this shouldn't be a big surprise.

Read the full article on Seeking Alpha.


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




Friday, August 14, 2015

Is Yelp Worth $100?

Gil Simon of Apex Capital predicts that Yelp (YELP) eventually plays out like Netflix (NFLX). The recent collapse mirrors the one like Netflix back in 2012. With the premium platform and content, Gil sees a significant rise for Yelp.




The video cuts off, but he reportedly suggested a significant rise in Yelp similar to the Netflix rally. Netflix has rallied from under $10 to over $120 now. It sounds like a ride to $100 would be only the start.


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



Thursday, August 13, 2015

Top 10 Net Payout Yields For August 2015


  • The top ten net payout yields outperformed the market in July due to several stocks with monthly gains in excess of 9%.
  • The top ten net payout yield stocks average yields of 14.7% to start August.
  • Motorola Solutions continues to hold the highest yield now at 25.7%.
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 at Seeking Alpha.


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




Wednesday, August 12, 2015

CyberArk Can't Match Extreme Expectations


  • CyberArk continues to under promise and over deliver.
  • The company regularly smashes Estimize estimates though the valuation multiples suggests the market already has that expectation.
  • The stock is likely to struggle gaining traction until it better proves that demand is sustainable.
By all accounts, the Q2'15 earnings results for CyberArk (NASDAQ:CYBR) were a blowout. The security software firm easily exceeded both analyst and company estimates suggesting CyberArk has unstoppable growth. The stock though isn't showing the same enthusiasm for the strong results.

Read the full article at Seeking Alpha.


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



Tuesday, August 11, 2015

A Fitting Drop For Fitbit


  • As predicted, Fitbit dropped after the stock reached $50 despite strong Q2 earnings.
  • The company is building a strong network that compels customers to remain in the ecosystem.
  • The valuation proposition remains unappealing even after the recent to drop to $42.
As predicted after the IPO, Fitbit (NYSE:FIT) it a wall when the stock surged above $50 prior to the Q2 earnings report. At that price, the stock had a valuation in excess of $12 billion based on 248 million shares outstanding making it difficult for investors to see positive gains.

Please read the full article at Seeking Alpha.


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



Monday, August 10, 2015

Zynga: The Turnaround Is Now Firmly Planted


  • Zynga continues making progress in mobile due to the surprise success of two slots games.
  • The stability of core franchises on the web will eventually help propel bookings higher.
  • Zynga is an extreme value as the stock bounces off the recent lows.
While a lot of media debated the quality of the Q2 earnings report of Zynga (NASDAQ:ZNGA), the results were unquestionably stronger than presented. As investors absorbed the numbers, the stock eventually bounced off the lows of $2.45, near the all-time lows reached late last year.


Read the full article at Seeking Alpha.


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




Saturday, August 8, 2015

How Low Can Twitter Go?


  • The growth misperception continues at Twitter.
  • Fellow social media stock valuations provide different outcomes for the stock.
  • Twitter remains a great service in the need of a permanent CEO with a coherent strategy.
  • Though the stock offers an interesting value for its growth rate, the stock is likely headed lower.
As not much of a shock, Twitter (NYSE:TWTR) continues struggling to produce the user growth that Wall Street wants the company to generate. After all, former CEO Dick Costolo probably wouldn't have suddenly stepped down mid quarter if MAUs were surging like the market wants to see.

Read the full article on Seeking Alpha.


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



Wednesday, August 5, 2015

Glu Mobile: More Staying Power


  • Glu Mobile produced Q2 '15 numbers above analyst estimates.
  • The mobile game developer continues to see strong staying power from the top franchises.
  • The stock is incredibly cheap at less than 2x 2016 revenue estimates set to rock higher based on games slipping from 2015.         
Each and every quarter, Glu Mobile (NASDAQ:GLUU) produces improving results while the market focuses on the quarter to quarter game releases. After reporting a solid Q215 beat, the stock is trading down based on some disappointing short-term guidance that doesn't impact long-term expectations.

Read the full article at Seeking Alpha. 


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