Tuesday, May 22, 2012

Stocks and Sectors

Archive for the ‘Long Ideas’ Category

Chinese RTOs Covertly Going Private

Posted by admin On May - 22 - 2012

By Adam Gefvert:

Through using the mosaic theory, I had created the hypothesis that China Medical Technologies (CMEDY.PK) and ZST Digital Networks (ZSTN) are in the process of being taken off the US exchanges and taken private.

My hypothesis suggests that both of these companies are staying silent about taking themselves private so they can buy back shares at a much cheaper price. Instead of explaining what they are doing, they have hired AER Advisors, a small investment company, to systematically accumulate shares over time. AER Advisors will continue scooping up a small amount of shares every month, until it owns the majority of shares in the company, or until the share price gets too high, at which point the company will announce a buyout for the remaining shares. There is no rush on the companies to do this, it could take years. In the meantime, the Chinese companies are running their businesses

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By Helix Investment Management:

Anyone who participates in the markets on a daily basis surely knows that they are often irrational. And in 2012, that irrationality has been on full display in shares of the Firsthand Technology Value Fund (SVVC). The fund, seen as a proxy for Facebook (FB) has seen wild swings this year.

(click to enlarge)Though the fund is up over 30% year-to-date (even taking into account its recent fall), our analysis of the company shows that the stock is undervalued at current levels. Throughout 2012, the stock has rallied consistently due to hype surrounding the IPO of Facebook. But now that Facebook has made its public debut, the Firsthand fund has fallen sharply, due to the fact that the mania people expected did not materialize. We think this is a positive for Firsthand shares, as the stock can now be judged based on its fundamentals. We have been in an out

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New Flyer Sees Bus Market Revival

Posted by admin On May - 22 - 2012

tom konradBy Tom Konrad (AltEnergyStocks):

Highlights from New Flyer Industries’ (TSX:NFI, NFYIF.PK) first quarter conference call

The Numbers

New Flyer announced first quarter results on May 9. The results were:

Q1 2012 Q1 2011
Earnings up; reverses loss $2.7 million profit $6.4 million loss
Revenue up 6.2% $227.6 million $214.3 million

The improved numbers mostly arise from a more favorable product mix, and the benefits of New Flyer’s restructuring, which removed most of the debt burden. The North American transit bus market remains very competitive, and this competition led to Chrysler’s Daimler‘s Orion bus division to wind up operations in the quarter.

Management held the analyst conference call on Friday. Here are the highlights:

Bus Market Revival

Orion exited the market just in time for a revival. Transit agencies are once again issuing inviting bids for new buses, after a two year drought. State tax collections are rising, and transit agencies are contending with aging

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alex shadunskyBy Alex Shadunsky:

As Mylan (MYL) has quietly outperformed the market over the past year, it has flown under the radar as there are much more notable pharmaceutical companies. However, the company has continued to execute and the most recent case was MYL’s announcement earlier this month. On May 10, Mylan increased its EPS guidance range for 2012 to $2.45 to $2.55 in adjusted diluted earnings per share. Mylan’s previous guidance range for 2012 was $2.30 to $2.50 per share. Mylan also announced that its Board of Directors has approved the repurchase of up to $500 million of the company’s common stock in the open market.

That, in combination with the fact that analysts are bullish on the stock and its relative undervaluation to other companies in the generics space, suggests that the stock has bright prospects. Below is an in depth look at the valuation metrics and stock chart.

Valuation: Mylan’s trailing

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alex shadunskyBy Alex Shadunsky:

Funds have dumped Radio Shack (RSH) for the past two years straight starting since early 2010 when it was trading close to $25 a share. There was debate about the stock at the end of last year when it fell to $10 but that debate seems to have ended as the stock is now trading below $5 a share. A number of things have gone wrong for the company including disappointing earnings as sales in RSH’s retail outlets have been steadily falling.

The company has been reacting swiftly and just last month placed new plans in place to improve the company’s performance, including: 1) an ongoing, purposeful shift to mobility; 2) reclaiming relevance and maximizing profits in the signature platform; 3) pursuing incremental growth opportunities.

The valuation metrics suggest that the stock is about fairly valued but there may be more to the story. RSH’s P/B ratio has averaged 2.3

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Brief Review Of A Few Biotechs

Posted by admin On May - 21 - 2012

By Mina Shaker:

The following is a review of three biotech stocks with potential for growth. Amarin (AMRN), Osiris (OSIR and Abbott (ABT) are three companies with either recent breakthroughs, a catalyst, or a possible place to ride out a coming storm.

Amarin (

AMRN

)

On Tuesday May 8th Amarin released its first quarter earnings, along with a Press Release. Amarin’s focus is on treating cardiovascular disease. Their drug, AMR101, lowers triglyceride levels, without significantly increasing low-density lipoprotein (LDL) levels. Amarin

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Cisco Is Cheap, But Buyers Will Have To Be Patient

Posted by admin On May - 21 - 2012

By Shane Blackmon:

Cisco Systems (CSCO) has been a dog since the March 2009 low. Shares are up just a meager 22.5% while the tech heavy Nasdaq is up more than 125%. CSCO has been hampered by multiple earnings misses since August 2010. Two major headwinds that have hurt Cisco’s share price are weaker than expected U.S. government spending on CSCO’s products and the continued European crisis, accounting for 27% of revenues for the company.

CSCO is cheap, trading around 16.50 per share, but this doesn’t make the company a screaming buy. Shares have lost credibility with investors after four major earnings blow-ups since August 2010. Skittish investors will be unwilling to take shares higher until they get two or three consecutive quarters of solid earnings reports and guidance. John Chambers, CEO of CSCO, is unlikely to be bullish during the next 6 months as customers of CSCO are going to be worried

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2 Pharmaceutical Companies Trading Below Net Cash

Posted by admin On May - 21 - 2012

By Markus Aarnio:

Since my last article in February about Myrexis (MYRX) we have seen a small pop in the share price and a subsequent drop as well.

The pop was due to a press release given on February 15th stating that company’s Board of Directors has retained Stifel Nicolaus Weisel, an investment banking firm, to assist it in reviewing and evaluating a full range of strategic alternatives available to the company to enhance shareholder value. Myrexis has also suspended development activities on all its pre-clinical and clinical programs. The company will initiate an alignment of resources consistent with its decision to suspend further development activities.

The drop came on May 11th with a press release stating that company’s Board of Directors has appointed Richard B. Brewer as President and Chief Executive Officer, and David W. Gryska as Chief Operating Officer, effective on May 11, 2012. In addition, both Mr. Brewer and Mr.

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By Matt Schilling:

According to the European Union, Google (GOOG) has “a matter of weeks” to come up with a solution over allegations that the search engine giant has discriminated and misrepresented some its rivals in the region. The European Union’s Antitrust Authority, under the direction of Joaquin Almunia, has requested that Google’s Chairman Eric Schmidt create a resolution that will allow for both Google and its European counterparts to exist alongside one another.

EU Regulators have been putting pressure on such companies as Apple (AAPL) and International Business Machines (IBM) as of mid-2011, noting that they’ve hurt the progression of several EU firms engaging in similar types of business. Apple, along with five other publishers, was cited by the same EU Regulatory Authority for anti-trust practices directly relating to the sales and marketing of their e-book platforms. IBM, on the other hand, was cited for the possibility of market manipulation directly relating

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Inside Facebook And Its influence On The Tech Space

Posted by admin On May - 21 - 2012

By Randy Lacen:

The PC is now obsolete. One of IBM’s (IBM) primary designers says he chucked his PC in favor of a tablet because he believes that “the PC is going the way of the vacuum tube, typewriter, vinyl records, CRT and incandescent light bulbs.” The feeling is mutual, at Facebook (FB).

The tablet PC, in recent memory, has made a profound influence on the tech space noting that many PC owners right now are considering owning an iPad over the traditional desktop model, which is placing tremendous pressure on Microsoft (MSFT) as it preps Windows 8 and Windows on ARM for release on its future tablet sales. Facebook is now seeking to enter the mobile advertising space and capitalize on the tremendous opportunity that lies ahead for the favored social network company.

Facebook does not need to build a $3 billion mobile ad business overnight and Facebook is not losing money

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