Summary Stock trades at over 10x sales with an increasing share count. Despite product leadership and market penetration, it has never made a profit. Faces competition from larger and better-funded competitors that offer a wider range of products. The CEO owns 1 share. Company insiders have sold over $73 million worth of stock as they constantly cash … [Read more...]
Arrow Electronics Is Pointing Sideways
Summary Arrow is a global leader in tech distribution, trading at under 10x earnings. Financial results indicate sideways performance at best with growth mostly coming from buybacks. Despite cheapness the stock should be avoided based on FX headwinds, weak benefits from acquisitions, and cash flows that don't justify a long. Arrow Electronics (NYSE:ARW) is a … [Read more...]
LinkedIn: An Overvalued MySpace Or A Must-Have Product?
Summary Despite beating expectations, it still trades for over 100x earnings! Will talent solutions be the Trojan horse that hurts the shorts? Stay on the sidelines but short if you see these 3 signs or a Facebook entry into the market. Linkedin (NYSE:LNKD) released results yesterday after the close. They both beat expectations and provided above consensus … [Read more...]
Newsletter – September 2015
Despite the decline in the portfolio, it is the 12th quarter the strategy has beat the S&P 500 out of 13 quarters since inception. During September, FatAlpha dropped -2.39% vs -3.01% for the market. Over the last 39 months, the S&P has declined during 12 of these. The strategy has outperformed in 10 of those months with an average decline of -0.81% vs -2.52% for the … [Read more...]
Apple – The Big Picture And Why You Should Own It
Summary Let's stop playing the game "What do we find to worry about next", and focus on the facts. Apple's finance performance is mind boggling - Stronger than any other company with sales above $30 billion. Apple's stock is cheap as it trades at a discount to historicals. Focusing on the huge amount of free cash flow results in a great deal of upside (40-80%). … [Read more...]
Low DRAM Prices Present An Opportunity To Get Long Micron
Summary The stock is trading at an EV/EBITDA of 3.6x. The decline in DRAM prices have hurt performance and the stock price. There is a growth story developing with potentially very hot new products in the next few years. INTC cooperation appears solid and Samsung will not initiate a price war. The stock is still cheap even with 2016 or 4Q15 annualized numbers. … [Read more...]
Sanderson Farms: Still Cheap Despite Decline in Chicken Prices
Summary Sanderson Farms is trading at an EV/EBITDA of less than 3x. The decline in chicken prices have had an adverse effect on the company's performance. Despite this, higher volumes and lower costs have helped cushion the drop. Market is too pessimistic. Using analysts' projections, the stock is cheap, trading at 11x 2016 EPS. With an almost debt-free balance … [Read more...]
