Thursday, October 26, 2017

Sprint: Not Making A Good Case

Sprint reports improving FQ2 results.
The highlights and CEO message aren't supportive of regulatory approval of a merger with T-Mobile.
Net debt position remains a problem for stock gains absent a merger and industry consolidation.
Along with FQ2 resultsSprint (S) released data points that aren't supportive of an industry needing consolidation. My investment thesis continues to suggest the stock isn't worth much more than the current price based on the results and the reported deal on the table with T-Mobile (TMUS).
Read the full article at Seeking Alpha. 

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


GrubHub: No Competition Fears Here

GrubHub surges following strong revenue guidance for Q4.
The market appears to misunderstand the inclusion of Eat24 numbers into the estimates.
Solid financial metrics support the effective handling of competition.
Stock valuation remains a question as EBITDA will trail sales growth in 2018.
In no real surprise, GrubHub (GRUB) easily fought off competition during Q3. As the company integrates recent acquisitions, the bigger issue is valuation now that the online food order and delivery service added debt to the balance sheet and boosted sales.
Read the full article on Seeking Alpha. 

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

Wednesday, October 25, 2017

Chipotle: $250 Is A Legitimate Target Now

Chipotle dips below $300 following highly disappointing Q3 results.
The negative EPS trend still signals to avoid the stock.
The downward shift in store opening growth will further impact the long-term potential.
After the close, Chipotle Mexican Grill (CMG) reported highly disappointing Q3 results. The numbers were so bad that my previous article questioned whether $300 would hold and now the focus can shift to the $250 level.
Read the full article on Seeking Alpha. 

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


Friday, October 13, 2017

AT&T: Pay-TV Problems Mount

AT&T warned on Q3 results due to hurricanes.
The company provided a secondary nugget that the pay-TV business faced even greater cord-cutting pressure.
Investors should expect 2018 EPS cuts.
Hidden within a warning for Q3 earnings, AT&T (T) detailed more weakness in the pay-TV segment. My research previously warned investors of troubles ahead as the NFL protests would only further hit a segment in decline.

Read the full article at Seeking Alpha. 

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


Citigroup: Don't Fight Capital Returns Tailwinds

Citigroup reported solid Q3 results.
Capital returns provided strong tailwinds for the stock.
Citigroup offers the best yield in the large financial sector.
Prior to the open, Citigroup (C) reported another quarter of solid earnings, backing up my long-held investment thesis that the financial was a huge value. During the quarter, the large financial ramped up capital returns, providing a large tailwind that the market keeps fighting.

Read the full article at Seeking Alpha. 

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


Friday, October 6, 2017

Facebook: Does The Platform Really Face A Real Russian Threat?

Facebook provided Congress with data on Russian accounts that advertised on the platform.
The scope and impact of the Russian ads are very minimal.
The costs of additional ad reviewers is easily absorbed by the platform.
Facebook (NASDAQ:FB) continues to face government and potentially regulatory pressure from allowing Russian ads that attempted to influence the 2016 U.S. elections. The stock has struggled to gain momentum in the last couple of months, making one question whether trouble is looming ahead.
Read the full article on Seeking Alpha. 

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