tag:blogger.com,1999:blog-37016837341345384412024-02-18T17:55:41.238-08:00Investing Currently.Unknownnoreply@blogger.comBlogger25125tag:blogger.com,1999:blog-3701683734134538441.post-44470329108852238102013-06-22T18:08:00.000-07:002013-06-22T18:08:03.078-07:00Further Tesla Analysis Reveals Possible Liquitdy Problems<span style="font-size: x-small;">This is a followup to my previous analysis on Tesla: <a href="http://goo.gl/XIBxr">http://goo.gl/XIBxr </a></span><br />
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The only thing scarier than the current stock price in Tesla is the 36 pages of risk factors related to Tesla in its annual report. Below are some key takeaways from the "risks" associated with the business.<br />
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<span style="font-family: Times, Times New Roman, serif;">"Our limited operating history makes evaluating our business and future prospects difficult, and may increase the risk of your investment."</span></blockquote>
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<span style="font-family: Times, Times New Roman, serif;"></span><span style="font-family: Times, Times New Roman, serif;">"Our long-term success will be dependent upon our ability to design and achieve market acceptance of new vehicle models, specifically Model S and new vehicle models such as Model X.</span> "</blockquote>
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<span style="font-family: Times, Times New Roman, serif;"></span><span style="font-family: Times, Times New Roman, serif;">"We have a history of losses and have to deliver significant cost reductions to achieve profitability in 2013 and long-term commercial success.</span> "</blockquote>
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<span style="font-family: Times, Times New Roman, serif;"></span><span style="font-family: Times, Times New Roman, serif;">"We incurred a net loss of $396.2 million for the year ended December 31, 2012. In addition, we have accumulated net losses of $1,065.6 million from our inception through December 31, 2012. We have had net losses in each quarter since our inception. Even if we are able to successfully maintain our current Model S production levels, there can be no assurance that it will be commercially successful. "</span></blockquote>
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<span style="font-family: Times, Times New Roman, serif;"></span><span style="text-indent: 0px;"><span style="font-family: Times, Times New Roman, serif;">"The automotive market is highly competitive, and we may not be successful in competing in this industry. We currently face competition from new and established competitors and expect to face competition from others in the future.</span></span> "</blockquote>
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<span style="text-indent: 0px;"><span style="font-family: Times, Times New Roman, serif;"></span></span><span style="text-indent: 0px;"><span style="font-family: Times, Times New Roman, serif;">"If we are unable to establish and maintain confidence in our long-term business prospects among consumers, analysts and within our industry, then our financial condition, operating results, business prospects and stock price may suffer materially.</span></span> "</blockquote>
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<span style="text-indent: 0px;"><span style="font-family: Times, Times New Roman, serif;"></span></span><span style="text-indent: 0px;"><span style="font-family: Times, Times New Roman, serif;">"We may need or want to raise additional funds and these funds may not be available to us when we need them. If we cannot raise additional funds when we need or want them, our operations and prospects could be negatively affected."</span></span></blockquote>
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<b>Liquidity </b><br />
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I currently feel as if the liquidity situation alone, could force Tesla into bankruptcy.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhDy6h-QZP-ISEHjN7xeUmjqLCm-6n5p8Qb2Ro2JEZWXPaBL4PyJVcm1JaUJ2oXW-pe0xS7vZpPll4BwRqsqb0U05TQcbfvBB1zZ13LuzNwIkMq8swCrbSwOXQcaLsagPoGs_3q_3PgRQk/s1600/Screen+Shot+2013-06-22+at+6.47.12+PM.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="64" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhDy6h-QZP-ISEHjN7xeUmjqLCm-6n5p8Qb2Ro2JEZWXPaBL4PyJVcm1JaUJ2oXW-pe0xS7vZpPll4BwRqsqb0U05TQcbfvBB1zZ13LuzNwIkMq8swCrbSwOXQcaLsagPoGs_3q_3PgRQk/s640/Screen+Shot+2013-06-22+at+6.47.12+PM.png" width="640" /></a></div>
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<span style="font-family: Times, Times New Roman, serif;">A very serious problem with Tesla is that all of its cash flows come from financing activities, which creates a very serious problem (explained further below). For one thing, it shows that Tesla is a business not built on its business model, but built on other peoples money. Infact, Tesla pulls in more from "financing activities", than from actual sales of its cars (revenue). The whole survivability of the company is based purely on how many more people they can sucker, before the company collapses. It's all one big ponzi scheme waiting to collapse. </span><br />
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<span style="font-family: Times, Times New Roman, serif;">Whether it be from selling stock and taking your money, or borrowing and taking the lenders money. The great thing about significant cash flows from financing activities is that, it can make a company that does nothing, seem like something. </span><br />
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<span style="font-family: Times, Times New Roman, serif;"> Tesla has not generated any significant profit or cash flows from operating activities, to pay for any debt. Also, Tesla is not expected to be significantly profitable for at least 2 years. So, whats happening right now is all just a game. Its to see how long the lenders will continue to supply cash to Tesla, and how fast Tesla can burn through cash.</span><br />
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<span style="font-family: Times, Times New Roman, serif;">The companies current liabilities exceed current assets, and could cause a serious liquidity problem in the future, when these debts are due. Whats even more worrisome is that the company bases its liquidity situation on a hunch that its lender will supply it with more cash through 2013, which is supposedly when Tesla will become profitable. Even though the company forecasts further loses coming from the building of the Tesla Model X. At that point who will be supplying the cash to actually run this business? The company is eating up cash faster than it can borrow. Sooner or later, its all going to come down like a house of cards. Agressive expansion through debt is not sustainable, no matter how good the company's future prospects look.</span><br />
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<span style="font-family: Times, Times New Roman, serif;">Looking at the income statment, you can clearly see that Tesla only started gaining significant revenues, after it had take on large amounts of debt.</span><br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEimS-aMdffWC-hyDB7r9RswvOI5RJ5OM5HrICDFw61S1wjwus44S6ZAXPO1UympMUEO6Da7JKAVxISoHd1mkZ8Ko_bmSAIjVJ_UDhC3adIIFixNHg4njWVc2vSOwpnwIe_SNhT-gGdGrf4/s1600/Screen+Shot+2013-06-22+at+6.55.50+PM.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="255" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEimS-aMdffWC-hyDB7r9RswvOI5RJ5OM5HrICDFw61S1wjwus44S6ZAXPO1UympMUEO6Da7JKAVxISoHd1mkZ8Ko_bmSAIjVJ_UDhC3adIIFixNHg4njWVc2vSOwpnwIe_SNhT-gGdGrf4/s640/Screen+Shot+2013-06-22+at+6.55.50+PM.png" width="640" /></a><span style="font-family: Times, Times New Roman, serif;"></span><br />
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<span style="font-family: Times, Times New Roman, serif;">The company only has around $240 million in cash, compared to their large debt position of $450 million (which has been rapidly increasing YOY). So cash wont be able to cover long term debt, and further loans will be needed to pay existing debt. The company will face significant financing problems in the future, and this is being conservative. If Tesla continues to lose money as management predicts, the cash burn would be even quicker. Tesla would eventually have its equity, wiped out, and would not be able to pay off their debt (causing a liquidity problem), forcing the company into bankruptcy. </span><br />
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<span style="font-family: Times, 'Times New Roman', serif;">The companies debt has increased by over 49% in just a 1 year period from FY2011 to FY2012. From FY2010 to FY2011 the long term debt of Tesla increased from $72 million to $271 million, an astounding</span><span style="font-family: Times, 'Times New Roman', serif;"> 275% YOY increase in Debt. </span><br />
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<span style="font-family: Times, Times New Roman, serif;">Lets hypothetically say that Tesla becomes profitable and the business model does well, how much would the company need to make just to be able to cover the increase in debt? Well, Tesla would have to increase their earnings by 49%(based on FY2011 to FY2012 data) in 1 year just to break even on their leverage.</span><br />
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<span style="font-family: Times, Times New Roman, serif;">The icing on the cake is that the company only has a measly book value of $168.5 million compared to its market cap of $11 billion. I can almost guarantee you that through future losses, the equity will be completely wiped out.</span><br />
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<span style="font-family: Times, Times New Roman, serif;">I see analysts flaunting higher price targets for Tesla left and right, while ignoring basic fundamental facts about the company in question. Sooner or later the market is going to wake up, but by then it will surely be too late. The investors and analysts will all be left scratching their heads, wondering what happened. </span><br />
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<span style="font-family: Times, Times New Roman, serif;"><br /></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3701683734134538441.post-33696232819104490182013-06-22T07:00:00.001-07:002013-06-22T07:00:41.165-07:00Metro Inc (TSE:MRU) analaysis<b> Financials</b><br />
Metro recently reported $3.77 in diluted earnings per share for the 2nd quarter of 2013 or realized net earnings of $366.8 million. Most of the profits coming from the sale of its investment intrest in the convient store chain "Couche-Tard". If you exclude this extraordinary item, income from continuing operations comes in at $100.5 million, which is a subsequent increase of 4.4% from $96.3 million from a year ago quarter. A good takeaway from this is that, even in a highly competitive market, Metro is still able to grow earnings.<br />
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For the Full Fiscal Year of 2012, Metro was able to book a 5.4% increase in sales, and a 18.3% increase in earnings. But, if you were to exclude the extra week in the FY2012, you will arrive at a 3.4% increase in sales from the previous year.<br />
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Metro has a fairly high return on equity for a grocery chain at 19.8% for the full fiscal year of 2012, up from 16.6% in the 2011 and 2010. Much better than Loblaws ROE of only 10%, but still behind Wal-Marts Roe of 23.7%. Metro is a profitable company, and financial soundness should not be worried about for the time being.<br />
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One important takeaway is that Metro has actually been more profitable based on Earnings per Share in the FY2012 from a year on year % increase, than any of the previous 3 years. In the past 3 years their was much less competition in the grocery retail industry, and even today with significant competition entering the market, Metro is able to turn out even higher profitability.<br />
But, the increased earnings and profitability will be short lived, and will face reality in the FY 2013 and 2014.<br />
Past performance is certainly no indicator of future performance. Although, Metro has done phenomenally well in the past, I still feel as if the full effects of increased competition are still yet to be seen in the upcoming quarterly reports.<br />
There are 2 possible outcomes that I believe will happen in the upcoming earnings reports. Metro's sales will slow down, and earnings will experience a decline, through lower gross margins (Metro's new pricing strategy), and lower sales.<br />
The second outcome could be that Metro grows sales phenomenally well as it did in the FY 2012. But of course, to attract all of these new sales in a highly competitive landscape, Metro would have to give significant discounts on its products. So gross margins would be compressed, and earnings would only grow marginally or stay relatively flat on a Year over Year basis.<br />
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<b>Balance Sheet</b><br />
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The company currently trades at a price to book value 2.3 Which is a little bit over the ideal b/p of 2, but still a fair ratio for a company that continues to grow.<br />
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The current assets of the company are at $1.28 billion, while current liabilities stand at $1.152 billion. So current assets are just able to cover current liabilities. Most of the liabilities come from the account's payables owing to suppliers of the grocery chain. So, a siginficant liquidity problem is not expected, and is highly unlikely to happen.<br />
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Metro, currently has a debt to equity ratio of .27. Making Metro's debt postion solid.<br />
Some notes to make about the debt is that: Metro has large amounts of debts ($300 million) from fluctuating intrest rates. Thus, these debts are subject to market movements in intrest rates, and could potentially pose a risk. Currently, intrest rates are at all time lows, which works in the companies favour.<br />
An point to be made is that, having a very small debt to equity ratio could mean that management is too conservative with its business and not leveraging enough to improve shareholder returns. But, I believe that a low debt policy is ideal.<br />
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<b>Company Overview</b><br />
From the outside, Metro's business model seems relatively simple to understand. They sell food to consumers in their many grocery stores, and make a profit from the sale of those goods. But, the grocery business is far from simple.<br />
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Loblaws is an example of a once great grocery retailer falling from grace. It seemed as if nothing could stop this company, and was on its way to be one of the WORLD's biggest grocery chains. What was once a great booming company 8 years ago, is now starting lose market share, with declining profits and increased competition. Thus, making the grocery chain business highly unpredictable for any investor, no matter how stellar the past records have been. What was the chief problem with Loblaws? Too much competiton coming from Metro, Sobeys and Walmart. The recession made things even worse, with price conseous consumers turning over to less expensive grocery retailers, offering competitive pricing that Loblaws simply did not have.<br />
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What was really concerning for me is that consumers don't care about brand, and aren't willing to pay a little extra more for shopping at brand name retailers. The chief factor driving sales is pricing of the products. Thus, the competitive advantage that grocery retailers offer is none. Consumers readily move from one grocery retailer to another, and shop not on brand but on price.<br />
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Management has caught on to this trend, and has acknowledged the need for competitive pricing in its products.<br />
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One of Metro's 5 customer promises, also happens to be the most important one of all: price.<br />
The company has been improving display locations on many of its private labels to give the perception of good value for the customers money.<br />
Also, through reward programs Metro is increasing long term customer satisfaction, and customer stability through their "Air miles" program.<br />
The company has executed fairly well in its pricing strategy against other brand name competitors and has shown through their continued increase in sales.<br />
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<b>Market and Competition </b><br />
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<span style="font-weight: normal;">"Intensifying competition, the possible arrival of new competitors and changing consumer needs are constant concerns </span><span style="font-weight: normal;">for us."</span></blockquote>
Metro currently acknowdlges the risk of incoming competitors. One competitor with a lot of financial backing would be Walmart. Of course, Walmart is a newcomer to the Canadian Grocery space, and a competitor that Metro has never faced before. How the company will fair in the future, is all dependant on how well you think management will be able to compete with a global super Titan (Walmart). Walmart is a fairly large company, and is willing to make significant discounts to gain market share over the short term, and drive more business. Even if their bottom line suffers. Walmart knows that consumer are looking for the best deals, and with their pricing power, anything is possible. With that being said, Metro should be prepared for price wars with Walmart.<br />
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Walmart does have something to offer that Metro does not, and that is online grocery delivery. Walmart delivers right to your front door, non-perishable food items! Walmart is capitalizing on the surge of consumer shopping online, and adding that competitive advantage that grocery retailers simply do not have. Online grocery shopping is still in its early stages, and the long term effects on Metro remain to be seen.<br />
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Walmart also garuntees the lowest prices on almost everything. Currently they are running ads against Metro, and convincing consumers that you can get much better deals at Walmart. It is important to note that these ad campaigns have only just started. So the effects of Walmart's competitive pricing on Metro are still yet to be seen. Therefore, I still remain skeptical on the long term earnings growth probability for Metro based on increased competition, and margin compression.<br />
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<b>Intrinsic Value</b><br />
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Discounted Cash flow: Using earnings per share of $7.83 for the last 12 months, a 0% growth rate, and discount rate of 11% from a benchmark such as the S&P500, we see that Metro is fairly valued $71.18. Metro is currently trading at $69.52. The intrinsic value factors in no growth for the company. But if the company could continue to grow earnings even through a competitive landscape (at their annual 14% rate), than the company would be fairly valued at $124. But, I dont believe that the company would be able to sustain such massive growth, and a levelling off, or flattening of growth is more likely So I feel that the 0% growth used is a fair estimate of future earnings. What may happen is that earnings might actually decrease year over year, from facts stated in previous paragraphs.<br />
Therefore, Metro is fairly valued in the $70 range, and does not provide enough margin of safety to justify a purchase of the common stock.<br />
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I have a long term price target of $70 on Metro common stock. I would recommend holding this company. If Metro is able to maintain sales growth, while still staying relatively profitable, this price target would be revised. But, with an highly competitive lanscape, I dont see that happening.<br />
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<b></b>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3701683734134538441.post-69945789293045742222013-06-13T13:23:00.000-07:002013-06-13T17:37:09.863-07:00Tesla Motors (TSLA) Analysis <div class="separator" style="clear: both; text-align: center;">
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Tesla motors (TSLA) is severely overvalued, even on supposed "high future growth". You would have to be a fool to buy at such elevated prices. But then again, many investors are. How can such naive investor sentiment and exuberance go unpunished an unnoticed?<br />
As Benjamin Graham has said, there is a difference between investing and speculating An intelligent investor should never confuse the two things to be the same. Tesla motors falls into the category of speculation, and anyone seriously considering this company as an investment should reconsider.<br />
Today, espeically for Tesla, it seems as if analysing a companies financials is the fools way of valuing a company. Since clear financial problems do not persuade people, I thought I would start of with a little bit of logical reasoning.<br />
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(Tesla Model S) From Teslamotors.com</div>
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<b>Overview of the Business </b><br />
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The company sells premium, high quality electric cars.<br />
Tesla's flagship car, the Model S, currently sells at a low end price of $77,800 and a high end price of $103,000.<br />
The problem with high end premium car companies is that, its just that, high end premium cars. Most people would not be able to afford such expensive cars, even on finance. With the average american salary in the $40,000 range, who in their right mind would even buy these cars? Price is the biggest factor affecting any purchase. Tesla is already excluding a huge base of customers. The only real customer I see shelling out this type of money for a car, would be the rich ($200,000+ annually), that only make up a small portion of the population.<br />
Therefore, tesla is segmenting over 95% of the population in America.<br />
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On top of that, what would compel anyone to want to buy an electric car? There are much better, more cost effective fuel efficient cars on the market, and there are also many hybrids that bring the best of both worlds.<br />
Take for example Ford's (F) new lineup of hybrid cars, the "C-max Hybrid". It is a much more cost effective car at only $28,000 and brings the benefits of electric, along with gasoline if needed. Most americans would be able to afford such a car on finance. It is also important to remember that most consumers are price conscious, and if they had to choose which electric vehicle to buy , they would no doubt go with the cheaper car (The Ford C-max hybrid) rather than the more expensive Tesla Model S.<br />
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Tesla motors is also facing increased competition not only from other established car makers, but from other electric car startups. Car makers from BMW to Toyota are all starting to make electric cars. Tesla's doaminice on the small electric car's market is coming to an end. There is so much competition, with more cost effective vehicles, from more established names, that by the time dust settles, Tesla would have a small fraction of market share.<br />
More competition also means more pricing pressure and more margin compression, that will shrivel away the already small 7% gross profit margin.<br />
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For the overall business, I rate this company a <span style="color: #cc0000;"><b>D</b></span><br />
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<b>Financials</b><br />
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The company only has tangible assets of $525.9 million, while liabilities start at a whopping $975 million. If we where to include intangible assets, the company would only have stock holder equity of $168 million. The company currently has a market value of $11 billion, and is trading at a significant premium to equity. So either, investors expect amazing growth, or they are buying nothing for something. The companies cash and receivables is only $440 million, which would not even cover half of its total liabilities. Making it an insolvent company. Even if Tesla experiences fast growth, how are they possibly going to finance it?<br />
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I see shareholders cheering about recent dismal profits, as if it was good news. Only making 3 cents per share on a 98 dollar stock. Even if the company could grow those earnings by 1000% the company would still be trading at a P/E of 300! There would have to be explosive growth that will not happen to justify these lunatic prices. With increased competition entering the market, you can expect to see Tesla's profits slowly dwindle away to nothing.<br />
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Currently Tesla has only had 1 profitable quarter, benefiting from an massive growth in revenue, to generate such small profit. Therefore, the likeliness of Tesla being highly profitable in the future is highly questionable, and revenues and sales would have to grow at an astonishing rate. Once again, an unlikely situation from increased competition, and market segmentation from high prices.<br />
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For financials I rate this company a <span style="color: #cc0000;"><b>D</b></span><br />
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<b>Conclusion</b><br />
Overall I rate Tesla Motors a <span style="color: #cc0000; font-weight: bold;">D </span>and a sell.<br />
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I would stay clear of Tesla at all costs. There are much better investments out there and this company is certainly not one of them. Tesla is severely overvalued, and may experience a major correction in the future.<br />
Currently naive investors are discarding all logical reasoning and are buying up the stock to insane levels.<br />
If you are thinking about shorting Tesla, I would do so through put options, and would not short. There could be a risk of further irrational thinking in the markets driving the stock up wildly, and you don't want to be caught up in that. But, you know just as well as I do, that the company has a dead business model, and is bound to disappoint in the future.<br />
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<br />Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3701683734134538441.post-42992945055968895112013-06-10T16:08:00.003-07:002013-06-10T16:49:56.247-07:00Barrick Gold (NYSE:ABX TSE:ABX) analysis<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg_jNdWOfdtcZ7Rb-A1Mu2P-_owsmjhq5Lo-xoN67RMrlc9nD5vCakyPMVVAX4SBM6UYIPB6o7Gq0bXhG-q3tay9U2JxtGncJHkIjy5zCLHHhFYP-77nERBhARSzaVy5AYnA4SgW5WjjQU/s1600/barrick.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="140" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg_jNdWOfdtcZ7Rb-A1Mu2P-_owsmjhq5Lo-xoN67RMrlc9nD5vCakyPMVVAX4SBM6UYIPB6o7Gq0bXhG-q3tay9U2JxtGncJHkIjy5zCLHHhFYP-77nERBhARSzaVy5AYnA4SgW5WjjQU/s200/barrick.jpg" width="200" /></a></div>
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Lets start off with with the obvious. Barrick Gold's share price has not only under performed the market, but has also under performed gold mining peers. Many uncertainties remain at Barrick Gold and the CEO stated this up front last shareholder meeting on April. In addition, Barrick's main asset (gold) has also not been fairing favourably with investors. As a result of Barrick Golds stock price has taken a massive tumble over the following months, and is currently at all time lows. To some investors, this looks like a classic value stock (trading under book value), at all time lows and looks "cheap".<br />
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But before we come to the conclusion that this company would be a good buy, we need to first look at the financial statements of the company, and the future outlook for gold prices. Below we use Q1 2013 earnings as the "latest" earnings.<br />
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<b>Assets</b><br />
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<b></b>Total assets come in at just under 49 billion, while liabilities come in at 23.7 billion.<br />
Equity, or book value comes in at a grand total of 25.23 billion. Currently as of Monday, 10 June , 2013, the stock trades at 20.81, and has a market cap of 20.8 billion.<br />
At 1 billion shares, and at 25 billion in shareholder equity, the book value of the company subsequently comes in at $25 per share. While the stock currently trades at $20. Seems like a great deal! Right? Get $25 worth of equity for only $20. Free money! Well... Not exactly..<br />
A closer look and we see that the assets are not all they appear to be.<br />
Cash and Cash equivalent come in at only 2 billion dollars. While inventories come in at 2.8 billion. Although inventory can easily be liquidated, I would still take caution in taking this number for face value, as sale price could be substantially lower than quoted. Receivables and other current assets come in at 1.1 billion.<br />
For sake of argument lets take the inventories value for face value, and add that together to the the receivables and cash. We get a total liquidable asset value of only 6.2 billion.<br />
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Of course, we can't forget about the non-current assets! Right off the bat I notice a large irregularity. Goodwill is a whopping 8.8 billion dollars! I don't know what about this company commands such a high premium for company branding and people, but surly it can not be 8.8 billion dollars. I know the company may try to justify this, but it is simply unjustifiable. Remember you as a shareholder can not extract value from goodwill, and therefore is meaningless to you, and should not be considered in valuing a company based on assets.<br />
Then plants,property and equipment comes in at an even more mind boggling 30 billion dollars! This is really a mixed bag. Value can technically still be extracted from mining sites, and machinery can still have usefulness, but I usually like to discount these things. For one thing, Sale price of these items are usually nothing or substantially lower than the stated price, and these values can not be fairly assessed. Therefore, these assets do not give any real value to shareholders.<br />
Discounting the property and machinery assets, with goodwill we find that assets are really only 11 billion dollars.<br />
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What's worse is that the company has 23 billion dollars in liabilities. Currently liabilities exceed current assets, and the company can be seen as illiquid. But once again, we can not discount that their machinery and property have some value and are being used to generate profits for the company. But, this is still a far cry from the stock being seen as a "cheap company" below book value.<br />
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For assets I rate this company a <b><span style="color: #cc0000;">C</span></b><br />
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<b>Management</b><br />
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Management has been doing a decent job tackling through the gold "crisis", but has failed in some areas as well. For example the closure of the Chilean mine in mid April sent the stock tumbling due to environmental concerns. Surly, management or someone in the company could of recognized something and avoiding this all together.<br />
During the shareholder meeting the CEO, started upfront by talking about the major decline in the stock price. That is a good sign, showing that management acknowledges what is going wrong, and realises that they need to improve. The CEO was talking about uncertainties in the gold market, and really putting the blame on others, rather than his own team. To some extent this is true, but I feel like he could of outlined initiatives rather than bad mouthing others.<br />
Currently global production average per ounce of gold is at $1200, while Barrick's is only $919 per ounce. Giving the company a significant pricing advantage, and giving the company more room to wait out further declines in gold prices. Managements ability to keep costs below average could definitely be shown as a good sign. If I had to pick 1 gold miner to wait out gold prices, I would definitely pick this company.<br />
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For management I rate this company a <span style="color: #38761d;"><b>B+</b></span><br />
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<b>Future Gold outlook</b><br />
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Wall street is not bullish on gold at all, with Goldman Sachs forecasting lower gold prices in the coming year, and Deutsche Bank forecasting an even gloomier $1100 per ounce for gold. I'm not an expert on gold, and I really can not comment on these forecasts, but you can clearly see where gold may be heading in the near future. If forecasts are correct, than Barrack along with other gold miners will get crushed. The lower the price of the gold, the lower the margins, and the more pressure put on the company. It is also important to note that demand for physical gold is at unprecedented levels.<br />
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Future gold outlook <b><span style="color: #cc0000;">C+</span></b><br />
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<b>Conclusion</b>
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<b>Overall company outlook <span style="color: #e69138;">B </span></b><br />
I am neither bearish nor am I bullish on this stock. I am currently neutral and have mixed feelings. I feel like gold may be oversold, but I also feel like more downside is possible. The risk reward , is just not there for me and so therefore, I would not recommend buying this stock, nor would I recommend shorting it.<br />
If gold prices do rebound, this stock would return back to the 30's, and if gold prices continue to tumble, we could see this company making new all time lows. Right now this is all a gamble on gold prices, and no on knows for sure where it will be.<br />
If you are a speculator, I would buy the stock in hopes of making big returns in a rebound of gold prices. But bear in mind of your downside risk as well.<br />
For other investors, I would recommend waiting out on the sidelines.<br />
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<span style="font-size: xx-small;">If you have any questions feel free to leave a comment.</span><br />
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<br />Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3701683734134538441.post-64372329633346170402013-05-20T18:42:00.001-07:002013-05-20T18:42:37.132-07:00JPmorgan Shareholder Vote (JPM)In my personal opinion based upon brief research that I have done, I have concluded that Jamie Dimon will NOT LOSE his dual titles. Why? You dont have to be a rocket scientist to figure out that the majority shareholders in JPmorgan are either high net worth individuals in favour of Dimon, or large institutions.<br />
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The only "major" institution that could sway things is Blackrock. They are undecided, but I highly doubt they would want to split the titles knowing the risks.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3701683734134538441.post-63149989337443979782013-05-01T12:36:00.002-07:002013-05-01T12:36:56.112-07:00United States Steel (NYSE:X) and Cliff Natural Resources (NYSE:CLF)I am currently very bullish on the steel sector in general. I do believe that iron ore spot prices could stay or hover around the 130 mark. Providing a very bullish scenario for Cliff. I started buying cliff as soon Although the steel sector is tough to be in, I still believe that united States Steel is severely undervalued, and would be hard to ever get these cheap prices again.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3701683734134538441.post-11736606081430231272013-02-28T16:08:00.001-08:002013-02-28T16:09:27.410-08:00Stocks to watch tomorrow Here are 2 stocks to watch tomorrow for March the 1st 2013.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjCNFtyRyfSjz5CfRVhm3QTzKgn6_zntkrcKABX_tvLMRJlY9ZYK-Bm8vLewfuT3CsqmNq153o6CB3Zyni9mHDOdX42dCd9UAe_TGdAOMoxpSOL491_C6eVZ7C6xM1DVenzxKpgxSjPAjY/s1600/images-1.jpeg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="88" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjCNFtyRyfSjz5CfRVhm3QTzKgn6_zntkrcKABX_tvLMRJlY9ZYK-Bm8vLewfuT3CsqmNq153o6CB3Zyni9mHDOdX42dCd9UAe_TGdAOMoxpSOL491_C6eVZ7C6xM1DVenzxKpgxSjPAjY/s200/images-1.jpeg" width="200" /></a></div>
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Groupon (GRPN), A online deals company dropped over 20% today, and could be a nice bounce play tomorrow morning. This stock is worth a look at. Or if there is a continued downtrend short the stock. But a bounce seems likely after a massive drop.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh7qxTvv5-eTVnCcukspMd5kUmF-tjrojerFA_SoPn5s1tpXzkoHaDwoGKlVl0mjj5cn78Nb7FmhSudMWszt5a7hYholwj01JUXSVyLGNq4aFtYdiBZEnuzLVE6M1OtPJ3hTKjCwhiO55I/s1600/Herbalife-Logo.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="92" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh7qxTvv5-eTVnCcukspMd5kUmF-tjrojerFA_SoPn5s1tpXzkoHaDwoGKlVl0mjj5cn78Nb7FmhSudMWszt5a7hYholwj01JUXSVyLGNq4aFtYdiBZEnuzLVE6M1OtPJ3hTKjCwhiO55I/s320/Herbalife-Logo.jpg" width="320" /></a></div>
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Herbalife (HLF) Herbalife shares were up almost 7% today after Carl Ichan disclosed that ned could purchase a 25% stake in the company, and that he would be given 2 seats in the Board of Directors at Herbalife. Currently short interest is around 33 million shares and 3.6 days to cover. This stock could be a nice long play for short squeeze tomorrow. If there is a fade going down on open tommorow, you could just as easily short the stock. For a repetition of last time when the stock was up almost 20% and faded back down.<br />
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<br />Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3701683734134538441.post-62345054468507104162013-02-28T12:56:00.003-08:002013-02-28T13:11:28.396-08:00Herbalife (HLF) Short squeeze is imminent?<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjBkhd8JmMH6h9bhYj_jdK2QZug7gPvGRUi76KX1RBk0E6tsieP6voCjHF-gigcuZVrQiZ4qI1RYbIBNw-TXRGgPiZmGRDxyVg8lgsqo80SEr_G9gMG7c68DASGgv8efkbFZ9mmuLjGOeY/s1600/Herbalife-Logo.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="92" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjBkhd8JmMH6h9bhYj_jdK2QZug7gPvGRUi76KX1RBk0E6tsieP6voCjHF-gigcuZVrQiZ4qI1RYbIBNw-TXRGgPiZmGRDxyVg8lgsqo80SEr_G9gMG7c68DASGgv8efkbFZ9mmuLjGOeY/s320/Herbalife-Logo.jpg" width="320" /></a></div>
Earlier today, Carl Ichan revealed that he could buy a 25% stake in the company, and Herbalife would also add 2 board of directors seats (from 9 to 11), and would appoint members from Ichan Enterprises to be on the board. With being on the board of directors you get acces to information that is not available to the general public and most importantly not available to Bill Ackamn. Carl of course would not actually go through with this proposal unless he knew in his mind 100% percent that this multi level marketing firm is NOT a pyrmaid scheme! Carl has said time and time again, that his team has done the research and can confidently confirm that. People will gain more confidence in the company as Carl has such a huge interest in the company. Buyers will soon outnumber sellers and a short squeeze is imminent. Although prior to this announcement I had no long position in the company, I am now seriously considering starting one. Smart money (Carl Ichan), is buying and he has lots of skin in the game. No one would put up such a large stake in any company without making sure they have all the facts right and is going to get a return on equity. The cherry on top is that Herbalife is cheap on almost all valuations measurements.<br />
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Currently 33 million shares short, and 3.6 days to cover! I would buy the stock just for the huge short interest, as the short squeeze reward could be massive. With Carl Ichan pumping the stock, shorts are the ones that are going to be burnt. Even if you are not as confident in the company, I would still take a small long position, just for the risk reward.<span id="goog_5258887"></span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-3701683734134538441.post-55698433512542221412013-02-25T06:30:00.000-08:002013-02-25T06:30:01.082-08:00The markets are open! The markets are open today at 9:30 and its the last trading week for Feb 2013.<br />
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One stock to be looking at is blackberry (bbry), after an interview on sunday with Thorstein Heins stating some bullish notes on sales of bb z10.<br />
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Zynga and Gluu are also on our radars, as a bill for online gambling has been approved in nevada, and we are still yet to see how the news of this bill will fully affect the stock in the long run. But we are guessing long term growth as gambling is a multi billion dollar market.<br />
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Pay, is another stock to watch. After falling almost 40 percent last week and then finishing friday by recovering by 5 percent, we are still yet to see this stock in the long run. Guidance was only cut a little, and it seems like a huge selloff. This once again is another stock to watch.<br />
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Of course HLF is another company to look at for any further news that would increase volatility.<br />
<br />Unknownnoreply@blogger.comtag:blogger.com,1999:blog-3701683734134538441.post-60309587145571616382013-02-24T12:37:00.001-08:002013-02-24T15:48:48.477-08:00Thorstein heins BBRY BLACKBERRY "exceeded expectations", "increased production capacity"<u><b>Highlights from german interview translated into english.</b></u><br />
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Thorstein Heins said some very interesting things for a german interview. the interview can be seen with the following link:<br />
<a href="http://www.faz.net/aktuell/wirtschaft/unternehmen/im-gespraech-blackberry-chef-thorsten-heins-wir-haben-unsere-produktion-hochgefahren-12092854.html"><u><b>http://www.faz.net/aktuell/wirtschaft/unternehmen/im-gespraech-blackberry-chef-thorsten-heins-wir-haben-unsere-produktion-hochgefahren-12092854.html</b></u> </a><b>(courtesy of faz.net).</b><br />
A rough translation of the page can be provided using google translate.<br />
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Heins said very interesting things in this recent interview done on February the 24th with FAZ.net. Here are some highlights using rough translation from german to english via Google translate.<br />
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"Now you hope for a comeback of new smart phones with the operating system BlackBerry 10th Some <b>analysts say the launch in initial countries such as Britain and Canada a few weeks ago was a little underwhelming.</b><br />
<b>Since I have completely different information, we exceed our expectations"</b><br />
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<b>"We exceed our expectations, and the requirements were ambitious.</b> Before we give out specific numbers, we want to do business but watch for a while."<br />
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"There was speculation that the new BlackBerrys were sold out in some stores only because you have kept the offer extremely tight ...<br />
<b>The fact is that we have been surprised by the positive response. We have now increased our production capacity."</b><br />
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How much for?<br />
<b>I will not reveal at the moment. But I can say this much: significant for us and unexpectedly high proportion of BlackBerry 10 devices will be purchased by new customers who previously had iPhones or Android smartphones"</b><br />
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Thorstein Heins sounded confident in the german interview of the future of blackberry and current sales of the bb z10. I would definitely want to get into the stock before hard numbers are released.<br />
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<br />Unknownnoreply@blogger.comtag:blogger.com,1999:blog-3701683734134538441.post-49594534617527193072013-02-24T09:41:00.001-08:002013-02-24T13:38:40.442-08:00The stocks to watch mondayTomorrow is monday and we all know what that means. Its the start of another trading week, and we think we got some stocks that will make your week a whole lot brighter. If your a day trader or even a short term swing trader, we have the stocks you want to be watching. For any major moves, and our recommendations on each! Enjoy!<br />
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BBRY (long)</div>
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GLUU </div>
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ZNGA</div>
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AAPL (long)</div>
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BIDU</div>
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GOOG(short)</div>
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PAY (long)</div>
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PCLN</div>
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Unknownnoreply@blogger.comtag:blogger.com,1999:blog-3701683734134538441.post-34061584303001490272013-02-23T16:29:00.000-08:002013-02-24T11:21:03.704-08:00Blackberry (BBRY) Is a strong buy!<b>Blackberry is a strong buy! </b>At current prices of 13.18 you are getting a steal for a great company. Currently the market is evaluating the company as if it is going to liquidate everything and return it to shareholders. That is just ridiculous, this thing is trading under book value according to ycharts.com The z10 is selling out everywhere, including canada, uk and all around the globe, and suppliers are stating "out of stock"! This, and the z10 is still yet to sell in the US. With this much momentum for the phone all around the world, strong demand is expected in the US and other markets yet to still be released. I would not be surprised to see the stock trading in the 30s range and above, by the end of this year! After the z10 and q10 have really shown there true colours through actually hard numbers.<br />
I am currently buying long into this company, for a classic turnaround trade. no im not expecting the glory days of 100's, but definitely 30 is reasonable.<br />
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blackberry z10</div>
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<br />Unknownnoreply@blogger.comtag:blogger.com,1999:blog-3701683734134538441.post-82354566411913198612013-02-09T10:04:00.002-08:002013-02-09T10:04:52.105-08:00Invest In AMD! Breaking news! New big gainer stock alert!Amd has been consolidating recently, and looks like it is ready for a breakout and the sky is the limit! AMD last firday was trading at 2.59 and i think there is more upside for this stock, as the CEO sounded confident that Amd cand return to profitability later this year in 2013! Invest in amd, and dont miss out.<br />
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-side note. 2 weeks ago i was preaching zynga at 2.45 and how cheap it was (Look at earlier posts). Now the stock is at 3.45 and you would of made an almost 40 percent return! Thats how i pick stocks.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3701683734134538441.post-10569499765523270462013-01-26T16:27:00.000-08:002013-01-27T13:44:20.784-08:00Nok Is ready for a bounce on Monday? <img height="112" id="il_fi" src="http://wmpoweruser.com/wp-content/uploads/2011/10/nokia-logo.jpg" style="padding-bottom: 8px; padding-right: 8px; padding-top: 8px;" width="320" /><br />
Nokia stock has dropped over 10 percent but is it justified or just complete bs?<br />
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Nokia the Lumina 920 maker beat analyst estimates on there quarterly earnings, and for the first time in over a year posted a quarterly profit, yet the stock has dropped more than 10 percent. Why? Because the Nokia group's board of directors have decided not to issue a dividend, the first time in over 143 years. I honestly believe that this is something that they should have done 2 years ago, when they where in tough times. There is just absolutely no reason to pay out a dividend and put yourself in a bad financial position. The people who are selling right now are more short term oriented, and do not look at the big picture. With the dividend gone Nokia is saving at least 1 billion dollars, which could be re invested back into the company, which in return will benefit the shareholder overtime with the increase of the stock price. I believe that the dividend cut is a great idea, and can be re invested into advertising and r and d for there new line of smartphones set to take on apple. This sell off is overdone and I wouldn't be surprised if the stock price goes up dramatically in the coming days. Don't lose out on these cheap prices.<br />
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3701683734134538441.post-49595126350998548182013-01-26T12:33:00.003-08:002013-01-26T12:33:48.041-08:00Vringo who? Shares of Vringo Inc. are trading currently at 3.29. I beleive that this stock has lots of upside potential and is a buy (no position currently). Consedirng that the current market cap for this company is only 250 million, but expects to get well over 500 millions from google. this 250 million dollar valuation is crazy. Even the company sets its trading range at the lowest of 4.25 and a high of 30. I beleive that if the judge rules in favour of vringo and gets 500 million, this stock will sky rocket. Of course Google isnt giving up without a fight, and this is speculation. But once again the jury has determined that Google has infringed on Vringo's patents and now its all about the amount.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3701683734134538441.post-47377659454990820092013-01-21T13:44:00.002-08:002013-01-21T13:44:35.540-08:00Now is the time to buy and place your bets into the big earnings week.This is the week of earnings! EARNINGS ARE EVREYWHERE, and if you want to cash in profits r take losses sell them now, as things are going to get very volitle. Stocks on good or bad earnings can easily move 5-15 percent in a matter of minutes. One solid compnay, that i beleve will bring solid results is AAPL (apple inc).<div>
I currently maintain my 600 dolalr price target for apple by early febuary on a blowout earnings beat to the conservitive wall street estimate of 13.3 eps. My current estimate is 15-16 eps for q1 2013 and guidance of 10-11 for q2 2013 for the march quarter. </div>
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3701683734134538441.post-49800431717085743112013-01-21T13:41:00.000-08:002013-01-27T13:03:44.616-08:00Why I think Apple (AAPL) is going to 600+So heres the thing, recently since septmeber apple has gotten off tis all time high of 700 and is now back down to 500 points. I think after a blockbuster earnings reprot we could see a correction updward that erased all the downward trends on apple. So if apple where to completley beat estimates, apple will easily recover back to 700 as fears of stiffing competition and weak iphone numbers are put to rest. But be cautious as this is all one big "if". Lets say apple beats estimates midely and gives another conservative guidance for q2 of 2013, i would say apple could easily recover back into the 600 dollar range by early next feburary. best case scenario is of course blow out earnings (posible) and a huge correction back to 700. But once again i feel like a move up to 600 is more likley in the coming month of feburary. Quarter 2 of 2013 is still a mystery, as apple has suppsodley cut manufacturing parts for ipad and iphone. Could it be a new product relase or is competition really stiffining and apple no longer has strong demand for there premium products. Quarter 2 will of course include all of apples new products and will include chinese new year, where kids get money, and may spend it on apple products. Wall street is currently esitmating an eps of 11, the current eps esitmate for q1 2013 is 13.3 which is below its high of 13.8 eps set last quarter. Once again this is just an estimate, and i believe apple could bring out numbers in the 15-16 range, and show us 50 million iphone sales plus. The apple sotres where packed this holiday and almost everything was sold out. I beleive this conservitive guidance for apple has set the bar too low and apple will easily be able to beat estimates and beat its best quarter set last year. I am long apple and will be holding through the earnings report.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3701683734134538441.post-66931875846032659312013-01-21T12:45:00.001-08:002013-01-21T12:45:03.801-08:00This is the week of earningsJust to give you an idea about the big names that are set to release there earnings report include microsoft, apple ibm and google. These massive comapnies reports are going to greatly affect the tech sector, and affect the tech heavy NASDAQ. One area of concern is the slowing of the pc market, which is the cause for the rapid decline in the stocks of major computer and pc companies. if microsofts earnings are bad or below estiamtes we could see microsoft confirm the doom of the pc and bring down other companies with it. If microsofts earnings are good, we could see a re assurance in the pc amrket and those stocks may go up. Everyone will be watching, and microsoft will decide the fate of pc stocks for rest of this year.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3701683734134538441.post-57852386576999464912013-01-21T11:45:00.000-08:002013-01-21T11:45:12.526-08:00Blow out quarter for Apple (AAPL)?<br />
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Will this be a blowout quarter for the tech giant APPLE (AAPL)? Apple the worlds largest company by market cap, is set to release there quarterly earnings for q1 2013, at 4:30pm EST after the bell. This report will come 1 day after googles report tomorrow. This is going to be the most important quarter for apple. If it misses we could see a retest of the 400 or even 300 levels. But i do think the chances we see a miss is very low. I mean just look at the mobile phone carriers, they are reporting record quarters driven by the apple iphone. When trying to buy a macbook or iphone at your local best buy or electronics store you see that they are all off the shelves and sold out. These are all indications that apple is set to release a blowout quarter and will arguably be the best quarter in apples history even beating its record quarter last quarter in q1 2012. But whatever happens on the 23rd will change apple forever. I maintain a $600 price target on apple by early or late February. </div>
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3701683734134538441.post-26288270949204963682013-01-21T11:37:00.002-08:002013-01-21T11:37:30.074-08:00RIM (+14.51%) Is now the time to buy?Shares of the TSE RIM are up almost 15 percent today on news that it planes on licensing software-reuters. 1 day ago i wrote an article on my beraish view on rim, but said that if there was any major move in the stock price that you should be a buyer. RIM and blackberry 10 are finnaly gaining some momentum, and if this momentum continues i think we could see 20 dollars a share by the end of February. But of course if this fades away, we could see more down side. Although bb10 is still yet to launch, investors are already preparing for RIM'S return? Im still watching RIM, buying now could be a good opportunity to get in on strong momentum for the stock, or a chance for a fade and lose. Manage risk.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3701683734134538441.post-16484356931343608332013-01-21T08:33:00.001-08:002013-01-21T08:33:58.204-08:00Google to release q4 2012 earnings, but will it be good?<br />
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Google a search engine we all know and love and use today, but on a rare notice to analyst google told analysts that there estimates there estimates where wrong and shoud be adjusted. i am not going to get into the logistics of exactly what happened, but there is one thing i can say and this is not a good sign for the upcoming earnings report for q4 2012. I could be wrong, maybe google was just notify gin analysts so they could have a larger bear who knows? But usually when a comapny does this, they usually have weak numbers. Once again i could be wrong but time will tell, tommorow google relases there earnings and i think they will have a miss. For now i say hold on google if you already own it, and stay out if you dont. If google does suprise and blow numbers out of the water, just chase the stock. Its not worth risking a huge drop on a gamble going into earnings.<br />
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3701683734134538441.post-19024464723282145762013-01-20T12:14:00.003-08:002013-01-20T12:14:45.008-08:00Facebook's graph search and push to mobile. Is it enough?<a href="http://www.thedrum.com/uploads/drum_column_article/100744/main_images/markzuckerberggraph.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="265" src="http://www.thedrum.com/uploads/drum_column_article/100744/main_images/markzuckerberggraph.jpg" width="400" /></a><img height="75" src="http://www.chymfm.com/files/Facebook.jpg" width="200" />Facebook a stock with a p/e of 200 expected to get major growth, has recently been brought back form the dead and into the spotlight with there move to gain more traction in mobile advertising, but have recently taken a slight hit on the news of a new Facebook graph search. But what is Facebook graph search? Well in simple terms, its a search engine that does not search the web, but searches the social networking site for things related to what you are asking. For example, if you wanted to know who likes to eat pizza. You can type that in and you will know all the people who like to eat pizza. Yes this does sound kind of creepy. Yes this is not a bad idea, and Facebook is marketing this as "a new way to find answers". Worst of all there appears to be no way to gain revenue of this new search, but im sure mark will find a way....Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3701683734134538441.post-81960317246058685602013-01-20T12:06:00.002-08:002013-01-20T12:06:41.662-08:00All eyes are on $RIMJan 20, 2013<br />
Research in motion recently launched bb10 (blackberry 10) , but is it going to be the next big hit that everyone wants? Personally right now i don't believe that the new blackberry phone brings any new advantage to the table, and really offers no new innovation and from a design standpoint it is just like all other phones on the market. Blackberry has a lot to prove before the stock prices gets any higher.<br />
I say hold on RIM until they gain any real traction in the mobile market. Buy on any strong upward momentum on things such as (positive news on bb10).<br />
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<br />Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3701683734134538441.post-366202147796114892013-01-20T07:14:00.000-08:002013-01-20T07:14:03.315-08:00JAN 20: $ZNGA is ready for a bounceZynga is definitely something to watch out for from now until the earnings report on February I would buy zynga at these levels, as zynga is ready to expand into the online gambling market with REAL MONEY, this will be a major catalyst for the stock price. They have partnered with BWIN one of the largest gambling sites, to create zynga poker and zynga casino set to release early this year in the UK. On top of that zynga is applying for a gambling license in Nevada. This company is moving from the boring days of Facebook games and expanding into real online gambling. We could see major upside by the end of this year for the stock. ZNGA is a big buy! But please be cautious and manage risk as this is just pure speculation about the future of online gambling (expected to be good).<br />
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Check out "zynga plus poker" to see it for yourself.<br />
http://www.zyngapluspoker.co.uk/<br />
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Do not miss out!Unknownnoreply@blogger.comtag:blogger.com,1999:blog-3701683734134538441.post-44447175742323509752013-01-19T16:13:00.000-08:002013-01-19T16:13:01.405-08:00Hot stock pick january 19thLooking forward to January the 23rd. Apples earnings reports are coming up and they are going to be huge. We are currently estimating an eps of $14-15.<br />
Dont miss out on apples blow out earnings. I beleive that if the earnings are good, we will see a $600 AAPL by the end of febuary or even early febuary.<br />
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-on a side note dont miss out on our other hot stock picks, keep visiting our blog! Are you ready for 200% gains this year? We will get you there!Unknownnoreply@blogger.com0