Below we list the most traded stocks of April on Kapitall.com. They are, in order, Apple Inc. (AAPL), Facebook Inc. (FB), Bank of America Corp. (BAC), Advanced Micro Devices Inc (AMD), and Ford (F). Technology companies are generally pretty popular with Kapitallists so it’s not too surprising that three of the five are from the tech sector, but what may surprise you is the information we dug up about the stocks, most notably Apple and AMD.
By now most people heard how everyone’s favorite stock hit $400, and then proceeded to rally, again.
While investors are well aware of the Apple hype, some novices may not be taking a look at closer accounting trends. Here are some promising accounting figures Apple possesses:
By Lever Free Cash Flow/Enterprise Value Apple is currently an undervalued stock. The LFCF is the cash a firm has left over after it pays off its debts, plus interest. This is important for dividend yields and for sustaining the day-to-day operations of the company. The EV is simply another way to measure a company’s value, similar to a Market Cap. Ratios above 10% appear undervalued. Apple’s ratio is at 10.52%.
Apple is also witnessing encouraging trends with their receivables. Since receivables are a form of revenue not yet received it is considered bullish to be collecting more payments paid in full, or closer to full. Receivable trends are encouraging because it helps to gauge whether the quality of sales, not just the quantity, is increasing over time. There is no absolute guarantee that receivables will be collected in full, so the less the better. Our screen implies the outstanding payments due to the firm are being paid off more and more, and the quality of their accounts is increasing. Apple receivables decreased by 3.14% while revenue increased 11.27% for the most recent quarter.
Advanced Micro Devices
AMD may see some dark days ahead. Institutional investors are decreasing their stake in the company, selling off almost 110M shares which is about 21% of the share float.
The sharks are also in the water. Short sellers are increasing their position in AMD, expecting the price to go down. Short sellers are typically more experienced investors. Shorts now represent almost 2% of the float.
AMD is also witnessing poor inventory trends, which could mean that they’re having trouble selling their product. Their revenues decreased about 31% in the most recent quarter while inventory grew by nearly 5%, which is now 26% of AMD’s total assets.
Business Section: Investing Ideas
Looking to trade like Kapitallists? We list the most traded stocks below with links to research tools and interesting data for interested investors. The list average 1-Year Return is 7%. Sign up for free on Kapitall.com.
This chart is interactive, press play on the Compar-O-Matic below to see monthly returns for the companies listed:
Your browser does not support iframes.
1. Apple Inc. (AAPL, Earnings, Analysts, Financials): Designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. Market cap at $412.34B, most recent closing price at $439.29.
Levered free cash flow at $34.38B vs. enterprise value at $326.91B (implies a LFCF/EV ratio at 10.52%). . Revenue grew by 11.27% during the most recent quarter ($43,603M vs. $39,186M y/y). Accounts receivable grew by -3.14% during the same time period ($13,336M vs. $13,769M y/y).
Receivables, as a percentage of current assets, decreased from 27.15% to 21.06% during the most recent quarter (comparing 13 weeks ending 2013-03-30 to 13 weeks ending 2012-03-31).
2. Facebook, Inc. (FB, Earnings, Analysts, Financials): Social networking website. Market cap at $65.34B, most recent closing price at $27.43.
When comparing valuation ratios to industry averages, Facebook, Inc. looks expensive. The stock's Price / Free Cash Flow ratio stands at 183.05, much higher than Baidu, Inc. (P/FCF ratio at 19.43) and Yahoo! Inc. (P/FCF ratio at 0).
The company's earnings growth looks weak, with EPS growing by -95.27% over the last year. This is considerably weaker than competitors like Yahoo! Inc. (EPS growth over the last year at 301.54%) and Baidu, Inc. (EPS growth over the last year at 57.43%).
3. Bank of America Corporation (BAC, Earnings, Analysts, Financials): Provides banking and financial services to individuals, small- and middle-market businesses, corporations, and governments primarily in the United States and internationally. Market cap at $131.35B, most recent closing price at $12.14.
Net institutional purchases in the current quarter at 679.2M shares, which represents about 6.28% of the company's float of 10.82B shares.
The company has reported strong earnings growth over the last year, with EPS growing by 3006.35%, higher than competitors like JPMorgan Chase & Co. (EPS growth over the last year at 16.05%) and Citigroup, Inc. (EPS growth over the last year at -30.60%).
BAC has a higher than average projected earnings growth rate over the next 5 years (15.40%). This is higher than the likes of JPMorgan Chase & Co. (projected EPS growth over next 5 years at 7.03%) and Mitsubishi UFJ Financial Group, Inc. (projected EPS growth over next 5 years at -7.90%).
4. Advanced Micro Devices, Inc. (AMD, Earnings, Analysts, Financials): Operates as a semiconductor company in the United States, Japan, China, and Europe. Market cap at $2.3B, most recent closing price at $3.22.
Net institutional sales in the current quarter at -109.8M shares, which represents about 20.99% of the company's float of 523.00M shares.
Shares shorted have increased from 92.44M to 102.22M over the last month, an increase which represents about 1.87% of the company's float of 523.00M shares. Days to cover ratio at 6.12 days. Revenue grew by -31.36% during the most recent quarter ($1,088M vs. $1,585M y/y).
Inventory grew by 4.79% during the same time period ($613M vs. $585M y/y). Inventory, as a percentage of current assets, increased from 18.31% to 26.22% during the most recent quarter (comparing 13 weeks ending 2013-03-30 to 13 weeks ending 2012-03-31).
The company's earnings growth looks weak, with EPS growing by -339.31% over the last year. This is considerably weaker than competitors like Avago Technologies Limited (EPS growth over the last year at 2.81%) and Intel Corporation (EPS growth over the last year at -10.95%).
AMD has a lower than average projected earnings growth rate over the next 5 years (2.67%). This is significantly below the analyst projections for Maxim Integrated Products Inc. (projected EPS growth over next 5 years at 12.16%) and Avago Technologies Limited (projected EPS growth over next 5 years at 11.42%).
5. Ford Motor Co. (F, Earnings, Analysts, Financials): Develops, manufactures, distributes, and services vehicles and parts worldwide. Market cap at $52.57B, most recent closing price at $13.38.
F has returned 3.79% since 4/2/13, and is one of the worst performing stocks in its industry. The stock is falling behind companies like Toyota Motor Corporation (TM) and General Motors Company (GM), which returned 14.44% and 11.56% during the same time period.
F has a lower than average projected earnings growth rate over the next 5 years (10.50%). This is significantly below the analyst projections for Nissan Motor Co., Ltd. (projected EPS growth over next 5 years at 61.76%) and Toyota Motor Corporation (projected EPS growth over next 5 years at 44.90%).
-Ryan Horch, Kapitall
Use Kapitall's Tools: Looking for ways to analyze this list?Use this article snapshot as a launch pad (click here for help): Simply click on the links, and use Kapitall's tab navigation to browse through the data...
Analyze These Ideas: Getting StartedRead descriptions for all companies mentioned Access a performance overview for all stocks in the list Compare analyst ratings for the companies mentioned Compare analyst ratings to annual returns for stocks mentioned Real-Time Opinion: Scan the latest tweets about these companies (feed will open in a new window)
Dig Deeper: Access Company Snapshots, Charts, FilingsApple Inc. (AAPL, Chart, Download SEC Filings) Facebook, Inc. (FB, Chart, Download SEC Filings) Bank of America Corporation (BAC, Chart, Download SEC Filings) Advanced Micro Devices, Inc. (AMD, Chart, Download SEC Filings) Ford Motor Co. (F, Chart, Download SEC Filings)
New to Kapitall?1. New to the site? Click here to register for a free account, and gain access to more tools and data2. Looking for more investing ideas like this? Click here to sign up for your free copy of Kapitall Weekly3. Follow us on SeekingAlpha, Motley Fool, Nasdaq and Twitter
ABOUT KAPITALL WIREKapitall Wire, which is not a broker/dealer, offers free cutting edge investing ideas, lively commentary and timely analysis of companies enhanced by interactive tools. And the Investing 101 section breaks complex concepts down to their basics, offering education to novices that doubles as a refresher course for more seasoned investors.Kapitall Wire is a division of Kapitall Inc. Securities products and services are offered by Kapitall Generation, LLC, member FINRA/SIPC . Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.