Showing posts from April, 2019

IB Net Payout Yields Model

Twitter: No Turning Back

Twitter appears to have hit an inflection point with mDAUs. Investors need to not get caught up in perceived weak revenue guidance. My prediction is that revenue growth will push back above 20%. The stock has plenty of upside potential at $40 as analysts raise estimates. My   previous research   focused on how the market was far too bearish on   Twitter   ( TWTR ). The social-media company has consistently grown daily average users (DAUs) by ~10% while the market has been too focused on revenue guidance. The   Q1'19 results   proved this thesis leaving the stock in a position to test 52-week highs at $48. Read the full article at Seeking Alpha.  More commentary - WhoTrades  Disclosure: Long TWTR. Please review the disclaimer page for more details.   

Qualcomm Wireless Leadership Wins Out

Qualcomm settles long lasting patent disputes with Apple. The new deal will immediately boost EPS estimates. The stock remains cheap with reasonable $7 EPS targets and a $70 stock price. In no big surprise to investors following our   investment research   on   Qualcomm   ( QCOM ), the company was able to obtain a   settlement   with   Apple ( AAPL ) over their wide disputes on patent royalties. The wireless technology giant had already garnered settlements in China and South Korea along with recent admission from Japan regulators that Qualcomm was not a monopoly. Along with constant signs that Apple was struggling to obtain a viable 5G modem by 2020, the expected outcome was a settlement that would send the stock soaring. Outside of unexpected financial terms, Qualcomm heads higher. Read the full article on Seeking Alpha.  More commentary on WhoTrades .  Disclosure: Long AAPL, QCOM. Please read the disclaimer page for more details.   

Avoid These Reverse Mergers

Typically, a reverse merger is a sign of a company facing troubling finances, though I'll be the first person to tell investors that this isn't always the case. Each stock in the process of a reverse merger needs the merits of its individual case reviewed by an investor. In the case of Rite Aid (RAD) and Novavax (NVAX) ,  these reverse mergers are signs that these stocks face incredibly difficult times ahead and the stocks are likely headed even lower. Rite Aid got approval by shareholders for a reverse split that needs to happen by the end of June to cure NYSE requirements for a $1 listing. At $0.57, the stock would trade at $11.40 on a 1:20 split to take place on April 22. The problem is that Rite Aid continues to face more pressure from Amazon in the pharmacy space and stronger competitors that are already struggling. At a price over $10 after the split, Rite Aid is likely to face even more selling pressure. Analysts have the retail pharmacy earning arou

AMD: Untold Margin Story

AMD takes a hit from $30 despite a bullish analyst call with a $35 target. Most analysts continue to under estimate the gross margin upside for the chip company. The 2020 base case is the average analyst estimates for $8.25 billion in revenues and $1 EPS. The EPS upside is $2-plus based on higher margins from market share gains. The market continues to underestimate the margin improvements in the works at  Advanced Micro Devices  ( AMD ) that will drive substantial improvement in profits and hence profits per share. The shift to 7nm chips will lead the company to a technological position it hasn't held in comparison to  Intel ( INTC ) in a long time, allowing for better pricing scenarios and substantial margin improvements. At $28, AMD isn't the great deal the stock was at the end of 2018, but AMD still has more upside in 2019. Read the full article on Seeking Alpha.  More commentary - WhoTrades Disclosure: No position. Please review the disclaimer page

Entering A New Age Of Beverages

New Age enters 2019 with a new business and a large cash balance. The company forecast $30 million in CBD-infused beverage orders. The stock below $5 offers a tantalizing value with all of the potential catalysts. The management team must shake off negative sentiment by beating Q1 revenue forecasts that appear conservative. New Age Beverages   ( NBEV ) hit lows below $5 as the market has clearly lost confidence in the company entering the CBD space before the general market. The company is entering a new age with the closing of the   Morinda deal   and a level of liquidity that would've help prevent the 2018 inventory issues. Despite a lot of known concerns, New Age is a play on a market shift to wellness and CBD-infused drinks that doesn't necessarily need success in order for the stock to rally. Read the full article on Seeking Alpha. Vote on CBD sales Disclosure: No position. Please review the disclaimer page for more details. 

Tesla: Autonomous Fleet Of The Future

  Investors negative on   Tesla (TSLA)   are possibly too focused on quarterly delivery numbers. Telsa has a potentially bright future in an autonomous fleet that earns owners money when they aren't using the vehicle. At least, Elon Musk sees such a future as a competitor against   Lyft (LYFT)   and   Uber (UBER) .  

Lyft: Sold To You

Lyft priced their IPO at $72, above the original price range. The stock ended the first day nearly $9 below the opening price of $87.24. Lyft continues to follow the negative path of the Snap IPO. The   Lyft   (NASDAQ: LYFT ) IPO came out like a gangster and ended with a thud. Turns out that my   previous predictions   of a repeat of the   Snap   ( SNAP ) IPO was far too positive on Lyft with the stock ending $9 below the initial trading price. This is a bad sign that the stock is headed even lower and retail investors could end up holding the bag. Read the full article on Seeking Alpha.  Daily commentary: Out Fox The $treet - April 1 Disclosure: No position mentioned. Please read the disclaimer page for more details.