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Showing posts from April, 2022

Intel: Still A Have Not

  Intel reported another quarter of weak results despite beating lowered guidance. The company forecasts a tough June quarter with another big EPS hit and revenues below expectations. The stock isn't exactly expensive around 13x forward EPS estimates, but Intel isn't appealing with the margin compression and negative trends. I do much more than just articles at Out Fox The Street: Members get access to model portfolios, regular updates, a chat room, and more.   Learn More » As with most recent quarters,  Intel  ( NASDAQ: INTC ) reported solid numbers compared to expectations, but the chip giant typically guides to ever increasingly weak numbers. The company is struggling with tough competition and taking on  risks by aggressive spending for the new fab strategy. My  investment thesis  remains very Bearish on the stock due to ongoing pressures on chip demand and market share losses. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the dis

American Airlines: Too Many On The Sidelines

American Airlines guided to strong Q2'22 results including record revenues. The airline has easily overcome fuel prices up 60% due to much higher TRASM. Most analysts remain neutral or bearish on the stock providing plenty of catalysts for higher prices. The stock trades at just 5x normalized PE estimates as debt is repaid over the next few years. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.     Learn More »   After guiding to blowout numbers going forward,  American Airlines Group  ( NASDAQ: AAL ) saw a mostly tepid reaction by the stock market. The consensus view isn't even bullish on the airline despite trading at the year lows. My  investment  thesis  remains very Bullish on this and stock and the general airline sector. Read the full article on Seeking Alpha.  Disclosure: Long AAL. Please review the disclaimer page for more details. 

Meta Platforms: Bottom Test

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  Meta Platforms is set to retest the recent lows at $185. The company faces tough user comps due to COVID pull forwards similar to what has hit Netflix. The stock is cheap at less than 14x '23 EPS targets, but a bounce off the recent lows is key to whether the stock is safe to buy here. Looking for a helping hand in the market? Members of Out Fox The Street get exclusive ideas and guidance to navigate any climate.  Learn More » After a disastrous start to 2022,  Meta Platforms  ( NASDAQ: FB ) appears to have set a bottom with the steep plunge in early February leading to a low of $185 in March. The social media company remains in  growth mode despite the obvious concerns about the advertising business model and COVID pull forwards in 2021. My  investment thesis  is vastly more Bullish on the stock trading near $200 with a lot of the expected near-term weakness built into the price. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the discl

Twitter: Reject The Musk Offer, For Now

Elon Musk offered to take Twitter private with a $54.20 offer. The company has a 20% annual growth plan apparently ignored by most in the market. The deal price doesn't offer a premium valuing the stock at less than just 6x well-documented 2023 revenue targets of $7.5 billion. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.   Learn More » In a somewhat surprise move, Elon Musk made a sudden unsolicited offer to acquire  Twitter  ( NYSE: TWTR ) only days after deciding to not join the Board of Directors. The market had a mixed reaction due  to the lowball price likely to be rejected by the company potentially leading to Musk selling his 9.2% stake. My  investment thesis  remains Bullish on the social media site as the offer continues to show the vast value here. Read the full article on Seeking Alpha.  Disclosure: Long TWTR. Please review the disclaimer page for more details.  Update - Apr. 25 The only reason to accept the b

Roku: Not A Great Business Model

  Roku continues to slump following a string of disappointing earnings. The video streaming service already has a large customer base limiting future account additions. The stock isn't appealing with struggling growth and profits ahead. Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our model portfolio.  Learn More » While the streaming video sector reports solid growth rates, the business models of the companies involved haven't exactly lived up to grand expectations.  Roku  ( NASDAQ: ROKU ) is a primary example of where limited profits are  paired with strong revenue growth due to the costs to operate in the industry while streaming revenues are cut from the legacy video funnel. My investment thesis is Bearish on the stock despite the potential tradable setup of a double bottom around $100. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details.  

Twitter: Musk To The Rescue

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  Elon Musk acquires more than 9% of Twitter. The company has long struggled with growing ad revenues inline with Facebook in part due to executives not actually using Twitter. The stock is cheap at 5x forward EV/S targets with the potential for the business to accelerate growth to match the influence of the social platform. The potential exists for Musk to buy the stock at a higher price, but that isn't the base case here. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More » The biggest news of the day was Elon Musk  acquiring 9.2%  of the struggling social media site. The news that Musk apparently wants to take a crack at improving  Twitter  ( NYSE: TWTR ) is an encouraging move considering the  fears of him starting a competing platform in the lines of  Truth Social  ( DWAC ) being built by Trump. My  investment thesis  remains very Bullish on the stock despite the initial 25% pop on the move by the CEO of Tesla