Monday, November 30, 2015

Glu Mobile: Celebrity Theme Shows Encouraging Promise

  • Glu Mobile is a bargain trading below $3.50 even without a hit.
  • The celebrity games offer the promise for another big hit with several opportunities in the pipeline.
  • The surprising success of celebrity games over the Thanksgiving holiday should spark interest in the stock.



The prime reason my investment thesis on Glu Mobile (NASDAQ:GLUU) didn't change after the disappointing Q3 results was the upcoming lineup in celebrity games. The combination with the lower stock price offered a very compelling entry point considering the primary 2H games weren't released yet. The market though wasn't pleased with the delays of these games and indiscriminately sold the stock.

Read the full article on Seeking Alpha.


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



NXP Semi: Stay Prepared

  • NXP Semi has rebounded following positive regulatory news surrounding the Freescale Semi merger.         
  • Investors should patiently await further dips as the inventory correction and volatile merger integration will no doubt lead to more hiccups in the quarterly financials.
  • The stock remains a prime purchase on future dips due to the synergies from the merger and the benefits to the EPS picture.



The recent news events surrounding NXP Semi (NASDAQ:NXPI) and the associated stock action highlights why investors need to stay prepared. The inventory correction in the semiconductor space and the upcoming completion of the Freescale Semi (NYSE:FSL) merger makes for a volatile few months.

Read the full article on Seeking Alpha.


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



Thursday, November 26, 2015

Schlumberger: The Prime Reason To Wait On Owning The Stock

  • The Department of Justice approval sets Schlumberger up for completing the Cameron merger on time.
  • The deal remains on path to provide a boost to Schlumberger's EPS estimates.
  • A big concern remains that the market won't appreciate the lower margins from the Cameron business.
  • The recommendation remains to hold off on owing this stock until after the company releases the merged financials.



The recent approval of Schlumberger's (NYSE:SLB) purchase of Cameron (NYSE:CAM) sets up the deal to close in Q1'16. The oilfield service giant faced limited regulatory impact from buying the Cameron business that has little overlap.

Read the full article on Seeking Alpha.


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



Wednesday, November 25, 2015

Is Mobile The Solution For Yelp?

  • Yelp continues running into search engine issues with Google.
  • The stock has surged this month to top $30.
  • The mobile app continues to offer a long-term solution to the Google problem that makes Yelp a long-term investment when the stock cools off.



After another search results issue with Google (NASDAQ:GOOG)(NASDAQ:GOOGL), Yelp (NYSE:YELP) is firmly on a path to work on solutions to bypass the Internet search giant. Mobile appears the easy and quick solution though uptake remains muted.

Read the full article on Seeking Alpha.


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



Skyworks: Cheap With Or Without Accretive Deal

  • Skyworks terminates PMC-Sierra deal after the target accepts a higher bid from Microsemi.
  • The company was expected to match the minimal increase in the deal price.
  • The stock remains an attractive investment based on organic growth targets not reliant on a deal for PMC-Sierra.



In a surprise move, Skyworks Solutions (NASDAQ:SWKS) stepped away from the bidding war for PMC-Sierra (NASDAQ:PMCS). Or maybe the move wasn't surprising, watching PMC accept a bid last week where Microsemi (NASDAQ:MSCC) only increased the bid price by $0.18.

Read the full article on Seeking Alpha.


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



Tuesday, November 17, 2015

PayPal: Improving Leverage Outweighs Industry Threats

PayPal is making strides to improve leverage after the split from eBay.
Apple Pay, along with other payment options, are viable threats that are likely to cause volatility in the stock.
The stock trades at an attractive valuation compared to the potential for digital payment growth that includes emergent mobile and P2P.


The interesting part of the PayPal (NASDAQ:PYPL) story is the digital payments provider has a business similar in size to MasterCard (NYSE:MA). The payments network provider is generally seen as a bigger company due to the market valuation of nearly $110 billion, but both companies are on pace to soon pass an annual revenue run rate of $10 billion.

Read the full article on Seeking Alpha.


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



Friday, November 13, 2015

Fitbit: Avoid The Sector With Founders Cashing Out

  • Fitbit prices the secondary offering at a substantially lower price.
  • Fossil buys competition Misfit for a relatively small valuation.
  • The founders of the sector companies are all dumping stock into weakness providing a clear warning sign on valuations.



After a strong Q3 and promising guidance for the important shopping season, Fitbit (NYSE:FIT) dropped a bomb on the market with a proposed large secondary offering. Not surprising, the stock plunged during a weak stock market heading into the offering.

Read the full article on Seeking Alpha.


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



Seeing Opportunity In The Disaster At Macy's

  • Macy's trades at multi-year lows following weak holiday guidance and other strategic decisions that disappointed investors.
  • The stock offers surging yields with a huge stock buyback plan.
  • The highly profitable department store offers a compelling investment after the recent disaster.


It is rare for a stock with a market cap in excess of $15 billion to lose 14% in one day. Macy's (NYSE:M) managed to accomplish that on Monday, following a huge guide down for the seasonally important Q4. The department store operator provided two key data points that disappointed investors and traders alike.         

Read the full article on Seeking Alpha. 


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



Monday, November 9, 2015

Skyworks: Cheap Based On Organic Growth Alone

  • Skyworks Solutions continues to deliver exceptional results.
  • The company has now set a realistic target of $8 of annualized EPS based on organic growth.
  • The recommendation remains to own the stock based on the strong fundamental business with the PMC deal providing an extra catalyst for shareholders.



The amazing part of the Skyworks Solutions (NASDAQ:SWKS) story is that the stock traded at $80 last week before the executives discussed guidance for $8 EPS in a reasonably short period. Or maybe the amazing part is that this target doesn't include the accretive deal for PMC-Sierra (NASDAQ:PMCS).

Read the full story on Seeking Alpha.


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



Friday, November 6, 2015

Finally An Opportunity To Invest In Drones

  • U.S. investors have genearlly had limited opportunities to invest in the drone sector.
  • The recent collapse of GoPro and Ambarella stock and entries into the drone sector provide attractive entry points.
  • Drone Aviation offers a speculative play as it builds a business in the defense and commercial sector.



While drones became one of the hottest market segments in the last couple of years, U.S. investors have had limited investment opportunities in the public markets. Some of the big government defense contractors that produce drones are so large they don't provide much growth opportunity, while the public companies moving into the consumer and commercial drone arena were richly valued and had limited revenues from drones.

Read the full article on Seeking Alpha.


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



Did SodaStream Really Fizzle?

  • SodaStream reported mixed Q315 results.
  • The results were hit hard by currency headwinds and a domestic transition.
  • The stock trades at a compelling valuation, especially considering the likelihood that currency eventually turns into a tailwind.



A day after a big bounce from Q3 results, SodaStream International (NASDAQ:SODA) gave back all of those gains. The perception is that some analysts were not happy with the holiday sales forecasts after recalculating the numbers. The reality is that the home-beverage maker had some solid results for a stock only worth $320 million.

Read the full article on Seeking Alpha.


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



Wednesday, November 4, 2015

Did Sprint Really Reach An Inflection Point?

  • The Sprint CEO claimed an infection point with the FQ2 earnings results.
  • The company added postpaid phone customers while still burning large amounts of cash.
  • The recommendation is to continue avoiding the stock.



Anybody following Sprint (NYSE:S) over the last few years is probably completely confused on where the wireless operator is heading. Under the previous CEO, Sprint was attempting to build the best wireless network in the country due to a large spectrum position. Under the current CEO, the company has veered in several directions with a partial attempt to build the best network, but mostly a focus on providing consumers with the lowest costs. In the process, CEO Marcelo Claure has ushered in cost cuts and reigned in capital spending that make it difficult to compete with the wireless leaders, AT&T (NYSE:T) and Verizon Communications (NYSE:VZ).

Read the full article on Seeking Alpha.


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



Tuesday, November 3, 2015

Why Does Fitbit Want To Dump Shares Below $40?

  • Fitbit registered a secondary offering of nearly 10% of the outstanding shares.
  • The strong Q4 guidance apparently wasn't enough to entice insiders to delay share sales.
  • Without a major balance sheet need, Fitbit is cashing in on what the company sees as an inflated stock price.



After the market close, Fitbit (NYSE:FIT) surprised the market with the revelation of an extremely large secondary offering. The fitness device maker produced exceptional Q3 results and has a solid balance sheet, raising questions on the reason for dumping so many shares by the company and selling shareholders.

Read the full article on Seeking Alpha.


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