Monday, May 30, 2016

Next Weeks Gamepaln

Forget the Fed and focus on the companies. both Zoe's Kitchen (ZOES) and Ambarella (AMBA) are on the radar for next week. Zoe's Kitchen has held up well despite the overall weakness in most restaurant stocks and Ambarella needs to show that the company has moved on past the weakness of previous top customer GoPro (GPRO).






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

Thursday, May 26, 2016

Twitter: Why Advertising Fatigue Doesn't Matter... For Now

Signs exist that Twitter faces brand advertiser fatigue.
Other signs exist that brands are taking a pause until the 2H of the year when the social media company has better video ad products.
User growth remains the key and competition from other media products won't ultimately steal advertiser dollars if Twitter continues to grow users.
Twitter (NYSE:TWTR) hit new lows this week as analysts downgraded the stock and suggested that brand advertisers were facing fatigue with the platform. While the competition from the likes of Instagram, part of Facebook (NASDAQ:FB), and SnapChat (Private:CHAT) are a long-term concern, the advertisers will always follow user traffic.
Read the full article on Seeking Alpha.

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

Wednesday, May 25, 2016

Bullish View On Twitter

Do you agree with this bullish view on Twitter (TWTR) shared by Brian Wieser of Pivotal Research? Brian doesn't actually seem like a raging bull despite the stock hitting new 52-week lows.





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

Tuesday, May 24, 2016

PhaseRx: IPO Slump Provides Surprise Opportunity

PhaseRx completed a recent IPO backed by strong venture funds to limited fanfare.
Investors can buy the early-stage biotech at prices equal to or below where the insiders bought in the IPO.
The company offers interesting therapy candidates targeted at unmet needs with urea cycle disorders.
The stock is a high-risk biotech only appropriate for investors willing to assume the risk that these therapies never reach the market.
The recent slump in the IPO market and lack of attention to the sector typically provides opportunity when new stocks hit the market. The market has a history of over- and under-investing in different markets, from private companies to IPOs.
Read the full article on Seeking Alpha.
        Disclosure: No positions mentioned. Please read the disclaimer page for more details.

American Airlines: Changed Industry

The investment thesis remains that the airline industry has changed from the money-losing sector of the past.
Airlines like AAL haven't seen the stocks benefit from the lower fuel prices and large profits.
Industry moves related to suddenly higher oil prices are signs of the changing industry for the good.
The airline sector and American Airlines Group (NASDAQ:AAL) in particular are trading at multi-year lows due to fears of an industry relapsing to problems of the past. The market though appears to be overlooking some industry facts in the process of quickly rushing to a negative judgment.
Read the full article on Seeking Alpha.
 Disclosure: Long AAL. Please read the disclaimer page for more details.

FireEye: Looking For Opportunity In The Threat Lull

FireEye trades near the all-time lows after an executive change and ongoing negative margins impact investor sentiment.
The valuation is more compelling after a long period of trading at irrational values. .
The sector offers opportunity as the threat environment is in a lull. .
The downturn in FireEye (NASDAQ:FEYE) this year corresponds to a couple of issues with the stock and the sector. The confluence of issues might signal a shift in the stock going forward.
Read the full article on Seeking Alpha.

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

Monday, May 23, 2016

Verizon: Lingering Impact Of The Union Strike

The lingering union strike at Verizon is starting to have a financial impact on the company.
The brand impact to Verizon Wireless could start showing up in customer churn.
Investors have no reason to panic out of a 4.5% dividend yield, but the stock could easily give up its gains for 2016.
Now that a month has passed since last focusing directly on the union strike impact on Verizon Communications (NYSE:VZ), the lack of an agreement is bound to have a lingering impact. Investors now have to worry about a tarnished brand after union members have attacked the company for six weeks in a row.
Read the full article on Seeking Alpha.

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

Glu Mobile Has Another Dream Opportunity

Glu Mobile isn't short of potential hit games.
The latest celebrity game featuring Britney Spears has some initial positive reads, but the numbers so far don't suggest a mega hit.
Regardless of the games outcome, the stock is valued based on limited risk and potential high reward.
After some very high profile disaster games, Glu Mobile (NASDAQ:GLUU) has another opportunity with a new celebrity game. With the recent success of Tap Sports Baseball 2016, the mobile-game developer has the chance to finally rebuild investor confidence.
Read the full article on Seeking Alpha.


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

Sunday, May 22, 2016

Vodafone: Signs Of Life

Vodafone is finally showing signs of life in the long stagnating European wireless services with the shift to 4G.
The stock continues to offer strong yields and potential catalyst of the lucking Liberty Global.
The network upgrades are only starting to show signs of benefits providing opportunity before the market in general catches on to the growth phase.
After taking on a network modernization plan following the sale of Verizon Wireless to Verizon Communications (NYSE:VZ) a couple of years back, Vodafone (NASDAQ:VOD) is finally seeing the fruits of those investments. Project Spring helped improve European networks to 4G coverage and AMAP to 3G+ providing vast improvements to data access in the impacted geographies.
Read the full article on Seeking Alpha.

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

Saturday, May 21, 2016

Northrop Grumman: Warning Signs

Northrop Grumman hits peak decade high P/E multiples.
The company continues to reduce stock buyback levels despite approvals for spending another $4 billion.
The warning signs are starting to stack up against the stock rallying further this year.
After again raising full-year guidanceNorthrop Grumman (NYSE:NOC)continues to show signs of peaking. One has to wonder if the massive gains of the last few years haven't built in irrational expectations for the next couple of years.
 Read the full article on Seeking Alpha.

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

Thursday, May 19, 2016

Lowe's: Surprisingly Good Q1 Results

Lowe's produced surprisingly good Q1 results with comp sales growth finally topping rival Home Depot.
The stock valuation remains stretched as the home improvement retailer spends less on capital returns and the stock hits new highs.
The recommendation is to ride the stock higher, but investors need to soon lock in gains.
My investment theme with Lowe's (NYSE:LOW) for several months now was that the valuation was stretched too far. The home improvement retailer proved me wrong with the Q1 results and the stock surged to new highs.
 Read the full article on Seeking Alpha.
  
 Disclosure: No positions mentioned. Please read the disclaimer page for more details.

Wednesday, May 18, 2016

MGT Capital: Had To End Bad

As I posted on WhoTrades yesterday, the tweets of MGT Capital's (MGT) new CEO John McAfee assured the market that the soaring stock wasn't a pump and dump. The odd part is that the tweets from the legendary CEO only played into the stock pump. The stock traded up to $5.58 today for an incredible surge from only $0.25 in April.



Despite his past success with McAfee in the cybersecurity space, he is now 70 years old and technically running for president as well. His D-Vasive company that focuses on anti-spy software doesn't appear to have much in sales. The deal involved MGT paying D-Vasive 23.8 million shares and $300,000 in stock. The deal was for 47% of the company making the stock valuation over $275 million at the peak today.

A big key is that McAfee was willing to accept less than 50% of the MGT stock for his company for a value of below $10 million at the time of the deal. Even at the close, MGT has no business trading for a valuation of around $132 million.

McAfee might not be involved in a pump and dump, but the stock will still end bad for people that bought this pump.

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

Citigroup: Sell Your Other Assets To Buy This Stock

Citigroup easily beat lowered analyst estimates during the dismal quarter for banks.
The large bank grew TBV by nearly $2 sequentially. .
The market is too obsessed with short-term growth and missing the growing value of the bank.
The sign of a solid business is one that generates value for shareholders even during a weak period in the business. The Q1 results for Citigroup (NYSE:C) were highly disappointing, but it doesn't mean that value wasn't derived for shareholders.
Read the full article on Seeking Alpha.

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

Gilead Sciences: Advantages Of Net Payout Yields

Gilead Sciences trades near multi-year lows after a Q1 earnings miss and questions regarding product sales.
The company is utilizing the stock declines and large cash flows to repurchase shares at a fast clip.
The stock now offers one of the highest net payout yields in the market.
One of the surprise outcomes of the recent decline in biotech stock prices are the yields that some of these stocks now offer. Gilead Sciences (NASDAQ:GILD) is one of the more interesting yield plays as the dividend yield is roughly 2.3%, but the stock buybacks signal a larger value proposition.
Read the full article on Seeking Alpha.

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

Tuesday, May 17, 2016

Square: Painful Lockup Expiration Provides Clear Opportunity

Square traded close to all-time lows as the 180-day lockup period expired on May 16.
While shareholders such as VC firms can now unload shares, the incentives don't exist for most shares and options with the stock around $9.
The recommendation remains to use this irrational dip in the stock price to buy Square.
Despite a known problem when the company went public, Square (NYSE:SQ) was hit rather substantially by the lockup expiration that expired on May 16. If it wasn't for the shares coming onto the market that swamps the existing float, one has to wonder if the stock would have even traded down after Q1 results.
Read the full article on Seeking Alpha.

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

Delta Air Lines Signals Industry Changes Are Real

Delta Air Lines reminded the market that the industry will make the necessary capacity cuts on rising oil prices.
The cheap valuation stand outs based on the level of capital returns.
If you agree that the airline industry has indeed changed, do not pass up the valuation in the sector and especially with Delta.
To anybody that would listen, the airlines have stated repeatedly for the last couple of years that the industry has changed. As the industry has reported unheard of profits over the last couple of years, the rising capacity has brought back fears of the industry of the past.
Read the full article on Seeking Alpha.

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

Top 10 Net Payout Yields For May 2016

The top 10 net payout yields had a sizable loss that failed to match the small gain in the benchmark for April.
The top 10 net payout yield stocks average yields of 18.1% to start May.
American Airlines took over the lead with the highest yield at 27.0%.
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 is now beating the S&P 500 for five out of the last six years. Please review the original articles for more information on the NPY concept.
Read there full article on Seeking Alpha.

 Disclosure: Long AAL, AMP, M, MSI, NTAP, QCOM. Please read the disclaimer page for more details.


Monday, May 16, 2016

Williams Won't Let Go

Williams' management continues pursuing the merger with ETE via litigation. .
The financials and stock prices support the company letting go. .
The recommendation is to own the stock with the speculation that the BOD is bluffing on closing the deal in order to get rightful compensation from ETE for walking away.
In a surprise tone, Williams Cos. (NYSE:WMB) management actually sounds intent on forcing Energy Transfer Equity (NYSE:ETE) to complete the much maligned merger. The relationship has turned very acrimonious suggesting an integration of the two companies would be difficult and questioning the value it taking extraordinary steps to force the merger closure.
Read the full article on Seeking Alpha.

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

Freeport-McMoRan: Yard Sale

Freeport-McMoRan continues to make counter intuitive counter moves.
The dumping of a prized copper mine at the lows in the cycle and paying drilling rig cancellation fees are prime examples of questionable management decisions.
The reason to own Freeport-McMoRan is quickly disappearing as the company unloads valuable copper mines in a yard sale fashion.
Not long after suggesting Freeport-McMoRan (NYSE:FCX) was proving its mettle due to improving cash flows, the company has turned exceptionally aggressive in dumping copper assets and eliminating drilling rig contracts. The moves provide the company with some net cash and reduced costs, but one has to wonder what is left of the company if even more asset sales occur.
Read the full article on Seeking Alpha.
  Disclosure:No positions mentioned.Please read the disclaimer page for more details.

Saturday, May 14, 2016

LendingClub: Death Watch Value

LendingClub hit a new low of $3.50 to close out the disastrous week.
The stock now trades near cash values despite any indication that the loan performances are impacted.
LendingClub now trades near death watch value providing an incredible entry point though risks of lower prices exist in the near term.
The sudden resignation of the CEO has left the stock of LendingClub (NYSE:LC) in a downward spiral. The stock now trades at a death watch valuation despite no fundamental change to the performance of the loans on the platform.
 Read the full article on Seeking Alpha.
     Disclosure: Long TWTR, YELP. Please read the disclaimer page for more details.

Friday, May 13, 2016

Nvidia: Did You Miss The Opportunity?

Nvidia rallied to new highs on strong earnings growth.
The stock value is generally misunderstood by the market with the analyst focus on GAAP numbers that underestimate the earnings power of the company.
The revenue shift toward growth areas sets Nvidia up for solid revenue growth and leaves the stock with a relatively cheap valuation.
My previous research focused on how Nvidia (NASDAQ:NVDA) was a relatively cheap stock when factoring in the non-GAAP numbers and the large cash balance. The graphics chip company has mostly avoided the tech wreck of late due to a focus on growing gaming, datacenter and automotive markets.
Read the full article on Seeking Alpha.

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

Thursday, May 12, 2016

Shake Shack: Impressive Q1 Results Don't Change The Thesis

Shake Shack sailed past Q1 results due an unexceptionally high comp sales.
The recent stock dip didn't improve the valuation equation as other restaurant stocks got even cheaper.
The recommendation remains to avoid the pricey valuation multiple with legitimate fears that lower comp sales in the near future will sink the stock.
The fear with the exceptional growth of Shake Shack (NYSE:SHAK) was that the company would eventually face tough compares. Restaurants that grow comp sales at rates above 10% tend to fall victims to themselves with future periods having a difficult time surpassing those numbers to any great extent.
Read the full article on Seeking Alpha.

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

Kohl's: The Accidental High Yielder

Kohl's hits new multi-year lows on weak Q1 results.
The retailer continues to generate strong cash flows that provide an exceptionally high dividend yield for shareholders.
The stock faces peak Amazon.com fears with the recent collapse providing opportunity for investors.
In the process of falling into retail purgatory, Kohl's (NYSE:KSS) has become an accidental high yielder. The company never set out to offer a market leading type of dividend, yet the multi-year stock lows leave the yield at an incredible 5.8% now.
 Read the full article on Seeking Alpha.

 Disclosure: Long KSS. Please read the disclaimer page for ore details.

Wednesday, May 11, 2016

Fiesta Restaurant Group: Q1 Sell-Off Provides Gift Opportunity

Fiesta Restaurant Group produced disappointing Q1 results highlighted my weak guidance.
The company is feeling the growing pains of aggressively pushing the Pollo Tropical concept into several new markets from a South Florida base.
The stock now trades at an extremely low valuation multiple providing a gift opportunity.
The quarterly results for Fiesta Restaurant Group (NASDAQ:FRGI) were slightly disappointing, but the stock reaction was extreme. The main restaurant concept is moving from clustered in prime South Florida markets to multiple new markets outside of Florida. The shift provides for lumpy results that the market is extrapolating too much as weakness.
 Read the full article on Seeking Alpha.

 Disclosure: Long FRGI, ZOES. Please read the disclaimer page more details.

Chevron: Why Are You Still Holding?

Despite a weak Q1, Chevron trades at towards the highs of the last year.
The company remains far from cash flow neutral, especially if oil prices have peaked.
Investors have to wonder if holding the stock at recent highs is worth the risk.
After reporting a large quarterly loss and missing analyst estimates, Chevron (NYSE:CVX) still trades at yearly highs over a week later. In fact, the stock trades near the levels from 2013 and 2014 when the price of oil was nearly double the current level.
Read the full article on Seeking Alpha.

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

Tuesday, May 10, 2016

SolarCity: Economics Gone Bad

The economics of building a solar like utility continue to soar.
The EPS loss for 2016 likely to exceed $10 after the big guide down for Q2.
The long-term benefits of recurring cash flows do not matter to the investment equation until the company reduces operating costs.
The collapse in SolarCity (NASDAQ:SCTY) again proves that no matter what long-term economics a company can present to the market, the short-term numbers matter more. The whole scenario reminds me of the famous quote from the Wimpy character in Popeye:
 Read the full article on Seeking Alpha.

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

Zynga - Q1 Earnings Usher In New Growth Mode

Zynga responded positively to solid Q1 earnings.
The growth in mobile is finally eclipsing the declines in the non-mobile platforms.
The stock is a strong buy as Zynga finally heads back into a growth mode.
The Zynga (NASDAQ:ZNGA) story is continuously framed as one of a struggling game developer trying to stay afloat. The missed story is that despite the CEO shuffles, the company has continued to successfully shift towards mobile and higher user average payments.
 Read the full article on Seeking Alpha.

 Disclosure: Long ZNGA, AAPL. Please read the disclaimer page for more details.

LendingClub: Founding CEO Resignation Isn't The End Of The World

The resignation of the founding CEO of LendingClub sent shock waves over the sector.
The P2P online lending platform reported huge Q1 growth, but the lack of Q2 guidance questions the impact of the CEO shakeup.
The enterprise value is too attractive to pass up unless the new CEO ushers in a new business plan.
The fintech sector took another big hit today with the resignation of the founding CEO at LendingClub (NYSE:LC). Along with the collapse of OnDeck Capital (NYSE:ONDK), the two primary public fintech stocks are sitting at new lows below $5 each.
Read the full article on Seeking Alpha.

 Disclosure: ONDK. Please read the disclaimer page for more details.

Stratasys: The Rally Will Remain Challenged

Stratasys reported stabilizing Q1 numbers as product revenues again fell.
The company painted a picture of a challenging market where customers are shifting down towards lower costs printers.
The market still needs to work off previous investments before Stratasys returns to growth mode.
The Q1 results for Stratasys (NASDAQ:SSYS) were highly impacted by the ongoing challenging market for 3D printers. The ability to improve operations while product sales remain weak provides for stability, but investors aren't likely to chase the stock higher on stability alone.
Read the full article on Seeking Alpha.

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

Sunday, May 8, 2016

Square: Why Are You Selling?

Square reported strong adjusted revenue growth for Q1 that failed to impress the market. .
The biggest culprit to the stock decline centers around confusion on the share count and one-time charges. .
The stock should rally once the lockup expiration passes in the next week. .
The quarterly results of Square (NYSE:SQ) appear very solid from the surface, but the stock ended down nearly 22% on the news. As highlighted in my past research, the stock was highly susceptible to confusion due to different revenue metrics, the recent IPO, and the Starbucks (NASDAQ:SBUX) contract status.
Read the full article on Seeking Alpha.

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

Friday, May 6, 2016

Yelp: Local Game Changer

Yelp reported Q1 results and provided full-year guidance that easily surpassed analyst estimates.
The large stock gains by midday trading appear very sustainable based on a couple of catalysts.
The recommendation is to own this stock and use any dips to load up on Yelp.
As Yelp (NYSE:YELP) headed into the quarterly results, the market clearly had limited expectations for the company. The stock traded at all-time lows in February and ended April below the lows of 2015. Even trading above $25 today, the stock trades 50% below the 52-week highs.
Read the full article on Seeking Alpha.

 Disclosure: Long YELP, TWTR. Please read the disclaimer page for more details.

Weatherford: Highly Disappointing Cash Flow Development

Weatherford missed cash flow targets causing the stock to crash.
The liquidity position doesn't appear nearly as dire as the stock reaction.
The stock is highly risky until the company can prove that positive free cash flows are indeed in the future.
My previous research focused on the shockingly strong cash flow position for Weatherford (NYSE:WFT). The oilfield services company was always a weak player in the sector so the general assumption that the downturn would doom the company wasn't so apparent. At least, it wasn't until maybe after the company reported disappointing Q1 results.
Read the full article on Seeking Alpha.

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

Thursday, May 5, 2016

CenturyLink: Why Are You Selling?

CenturyLink trades down after guiding to a mixed earnings picture.
The local telecom continues to generate substantial cash flows that support the large 7.5% dividend yield.
Use the weakness to own the telecom with the better yield.
For a relatively large, yield-oriented stock, CenturyLink (NYSE:CTL) trades in a very volatile manner. After Q1 earnings, the stock is down around 8% despite sporting a large dividend yield.
Read the full article on Seeking Alpha.

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

Glu Mobile: Why Are You Selling?

Glu Mobile easily soared past Q1 estimates, but the stock plunged on guidance.
The updated guidance shouldn't have surprised anybody watching the performance of existing games.
The stock remains an extreme bargain when it dips down close to $2 considering the cash balance, revenue streams, and IP.
After reporting Q1 resultsGlu Mobile (NASDAQ:GLUU) traded down 15% as the market was somehow disappointed with so-called weak guidance. Considering the mobile game developer had a series of disappointing game releases before the recent success of Tap Sports Baseball 2016, one has to wonder about how the company disappointed any realistic expectations going into results.
 Read the full article on Seeking Alpha.

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

Wednesday, May 4, 2016

Is DraftDay Fantasy Sports Building The Next Sillerman Media Empire?

The rebranded DraftDay Fantasy Sports ticker provides an intriguing investment in the daily fantasy sports sector and the media empire building of Robert Sillerman.
The company recently bought the owner of RantSports to start the consolidation process of the fragmented industry.
The stock is an under-the-radar, high-risk/reward play where the asset base could easily reward investors.
The newly branded DraftDay Fantasy Sports (NASDAQ:DDAY) fits the historical recipe for success of billionaire Robert Sillerman. The businessman has built a solid reputation and history of merging several media assets into a valuable business.
Read the full article on Seeking Alpha.

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

Tuesday, May 3, 2016

Is Sprint Really Moving Forward?

The quarterly results for Sprint hint at stability with limited signs of moving Forward. .
The wireless company continues to trade minimal phone additions for lower service revenue per customer. .
The stock isn't touchable until the company actually makes real moves forward. .
FQ4 quarterly results for Sprint (NYSE:S) were framed by the #MoveForward concept. The wireless company reported some improving metrics in several key categories, but the some doubts exist in whether enough progress was made considering the discounting activity.
 Read the full article on Seeking Alpha.

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

T-Mobile: Same Struggle Holds Back The Stock

T-Mobile continues to lead the domestic wireless industry in net subscriber adds and service revenue growth.
The company also leads the sector in operating expense growth.
The stock isn't appealing at $40 with minimal ability to generate profits in the highly competitive wireless industry.
As a brand and marketing machine, T-Mobile (NASDAQ:TMUS) has done a tremendous job of turning the business around. For shareholders, the question remains whether the wireless company can make the next step towards profitable growth.
Read the full article on Seeking Alpha.

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

Baker Hughes: Comeback Story For 2017

Baker Hughes and Halliburton officially terminated the merger over the weekend.
The company will collect the $3.5 billion termination fee by Wednesday, providing several opportunities to improve the balance sheet.
The stock might not rebound in the near term, but investors should follow a previous example of another failed merger to see where Baker Hughes might end up.
As the news flow recently suggested, Baker Hughes (NYSE:BHI) and Halliburton (NYSE:HAL) called off their merger over the weekend. Both companies will hold conference calls on Tuesday to discuss the new plans as independent companies. The prime focus of the break up going forward is the $3.5 billion fee that Baker Hughes will collect from Halliburton by Wednesday.
Read the full article on Seeking Alpha.

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

Monday, May 2, 2016

Baidu: Still Spending And Still Cheap

Baidu easily surpassed Q1 estimates as the Chinese Internet search giant grew revenues over 30%.
The company continues heavily spending on Transaction Services and video content.
The stock remains an incredible value in comparison to other Internet giants even despite the heavy spending that holds back profit growth.
Despite some better views of the Chinese economy and solid results from Baidu (NASDAQ:BIDU), the stock hasn't made a lot of traction since the release of Q4 results at the end of February. Ending last week below $200, the stock still trades far below the levels reached all the way in early 2014.
 Read the full article on Seeking Alpha.

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

The New Dogs Of The Dow - Q2 2016

The New Dogs of the Dow had a solid Q1 gain that surpassed the benchmark Dow.
The average stock in the Net Payout Yields based list had a yield of 9.2% to start Q2.
Due to a large buyback, United Technologies overtook the lead with the highest yield at 13.1%.
This article will focus on the quarterly returns and changes in the new "Dogs of the Dow" strategy originally introduced (see The New Dogs Of The Dow - 2015) last January. The goal of the series is to highlight that the old theory of buying the Dow stocks with the highest dividend yields is outdated. The more modern version involves using the Net Payout Yield (NPY) that adds the net stock buyback yield to the dividend yield. This yield more accurately reflects the modern corporate structure that utilizes a large amount of stock buybacks.
Read the full article on Seeking Alpha.

 Disclosure: Long AAPL, CAT, IBM, TRV. Please read the disclaimer page for more details.