Showing posts from July, 2016

IB Net Payout Yields Model

Mobileye: Small Research Budget Is A Problem

Mobileye easily surpassed Q2 analyst estimates. Ending a partnership with Tesla Motors is a big red flag on whether Mobileye will maintain a technology lead. The stock is richly valued, considering the profit margins are unsustainable due to the low spending levels. The  Q2 results  for  Mobileye (NYSE: MBLY )  were phenomenal on all metrics. The assisted driver technology leader though faces some challenges going forward, especially in relation to stock value. Read the full article on Seeking Alpha.  Disclosure: No position

Qualcomm: More Upside

Qualcomm easily smashed FQ3 results as the market overlooked Chinese license deals. The company has more hidden upside in the low-balled FQ4 guidance. The stock remains incredibly cheap with a large cash balance, solid dividend, and several catalysts for revenue growth. My  investment thesis  in  Qualcomm (NASDAQ: QCOM )  for a while predicted that the market was overplaying the negatives of the Chinese license issues and the impact of losing modem sales to the top smartphone company. The question now is whether the stock remains a buy as Qualcomm surges above $60. Read the full article on Seeking Alpha.  Disclosure: Long QCOM. Please read the disclaimer page for more details. 

Chipotle: Avoid Chiptomania

Chipotle misses Q2 earnings estimates, but the restaurant concept does return to profits. The company is seeing improving traffic trends from the Chiptopia loyalty program, but the program comes at a high cost. The stock continues to trade at manic levels and far exceed the values of other strong restaurant concepts that don't face food safety issues. Chipotle Mexican Grill (NYSE: CMG )  remains a shell of its prior self in all ways except valuation. The company reported that  Q2 earnings  results missed analyst estimates, yet the stock is bouncing around in the after hours far above $400. The market is holding on to slight traffic improvements from the new loyalty program, when the reality isn't that impressive. Read the full article on Seeking Alpha.  Disclosure: Long ZOES

Zynga: Finally A Mobile Winner

The recent success of a mobile game ushers in a new era for Zynga. A big mobile hit will change the market perception of the game developer. The stock still offers a very compelling valuation despite trading at the 52-week high. The biggest rap of Zynga (NASDAQ: ZNGA ) since the peak of the Facebook (NASDAQ: FB ) gaming platform was the lack of a solid mobile lineup. The game developer hired Don Mattrick to usher in the shift to mobile, but the company struggled to make the shift fast enough. Read the full article at Seeking Alpha.  Disclosure: Long ZNGA