Tuesday, April 24, 2018

NXP Semi.: Failed Merger Discount

NXP Semi. trades back below the original Qualcomm takeover price of $110.
The stock has far trailed the SOXX ETF since the merger agreement in October 2016.
A flood of stock buybacks in the sector due to failed mergers will lift all boats.
The Chinese regulator delays provide a unique play on NXP Semiconductors(NXPI) that has a long-term growth opportunity tied into a potential short-term quick gain. Investors that step in now appear set to win either way.
Read the full article on Seeking Alpha. 

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

Wednesday, April 18, 2018

Spotify: Streaming Discount

Spotify trades at a discount in the streaming sector due to the direct listing dynamics.
The streaming music service continues to expand leadership in the sector over Apple Music.
The stock trades too cheap at 4x sales estimates.
Oddly, Spotify (SPOT) trades near the post direct listing lows, while Netflix(NFLX) surges on a bullish earnings report. The streaming services for music and video aren't exactly the same, but the opportunity is similar; making the case for owning the laggard of the group.
Read the full article on Seeking Alpha. 

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


Tuesday, April 10, 2018

Glu Mobile: Home Run Potential

Glu Mobile successfully launched the latest version of the Tap Sports Baseball franchise.
The company still offers the home run potential of new games though recent history has been disappointing.
The stock is extremely cheap based on existing franchises trading at only 1.35x forward revenue estimates.
Despite the volatile market for the tech sector in 2018, Glu Mobile (GLUU) has generally held up well. The stock started the year around $3.60 and currently trades near $3.70 due to the extreme value in the stock and the stability provided by franchise games like Tap Sports Baseball.
Read the full article on Seeking Alpha. 

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

Tuesday, April 3, 2018

Synergy Pharma: One Perplexing Biotech With Upside

Synergy Pharma management caused the current stock weakness by not accurately forecasting reduced cash burn levels.
Trulance continues gaining market share and generating record prescription levels.
The small biotech has a better financing position due to willingness for partnerships and licensing deals.
All of these factors correlate to a stock that shouldn't trade at the lows.
Synergy Pharma (SGYP) reported Q4 numbers that deviated from guidance in a positive manner. The investment thesis in the stock is further enhanced that better transparency from management would've prevented the crash in the stock to new lows below $2 in the first place.
Read the full article on Seeking Alpha. 

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