Summary Points: DeVry came out with an earnings beat with revenue growth and better operating margin. Company has spent hundreds of millions on acquisitions that helped revenue growth. Medical and Healthcare is the most important part of the business but within the segment not all parts are doing well. Enrollments are the key driver and these, in general, remain … [Read more...]
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Summary Points: Bears are overly pessimistic while the stock price does not reflect any of the positive evidence from management moves. Management plan is reasonable with plenty of cushion available. Company on track to keep GameStop in business for many years to come. Stock trades at 70% discount to market (lower than 2012 $16 low) with a sustainable 6% dividend … [Read more...]
Summary Points: Historically, Bed Bath & Beyond outpaced its category and has consistently grown sales and profits. Dropping margins have been the biggest issue in the last year. Stock is cheap. Market is pricing in a very dim future. Online sales are expanding at over 20% yoy. A random basket of 40 items was found to be cheaper than Amazon.com. Most Americans … [Read more...]
Summary Points: WSJ view that TWX is a Good Bet regardless if deal happens or not. TWX has decent numbers with strong margins and uses FCF for dividends and buybacks. Valuation is at high end and thus not an attractive holding without the deal. This morning I was reading the famous Wall Street Journal column "Heard on the Street". One article was titled "Deal or … [Read more...]
Summary Points: The 2nd largest airline in the world with the best PRASM. Airlines have been a major beneficiary of the decline in oil. Sideways moving oil will maintain profits. Reducing debt while paying over 70% of FCF to shareholders. Delta is cheap versus the industry and market. Delta Air Lines (NYSE:DAL) is the 2nd largest airline in the world. Its … [Read more...]
Summary Points: Specialty retailer that has grown at double-digit growth rates has been stalling. Trades at a discount to historical multiples and to its major competitor GNC. Potential catalysts: Sale of GNC, Sale of VSI, Activist, Operational improvement. Vitamin Shoppe (NYSE:VSI) is a specialty retailer of vitamins, minerals, herbs, supplements, sports … [Read more...]
Summary Points: Since the economic crisis, the company has done well, growing sales, margins and profits. An established, well-known brand that does well in times of growth. It's time to be cautious as industry trailer orders have been declining. Earnings after-hours: Investors should focus on backlog, margins and what management has to say about … [Read more...]