/* Article Data (Server Side) article (o): [object Object] Content (s): Article Not Found. relatedData (o:Array(16)): 0 (o): [object Object] Headline (s): Russian hackers behind $50 million IRS scheme, report says Teaser (s): The hackers used data stolen from the IRS to file fraudulent tax returns and received $50 million before they were caught, according to the report. Source (s): CNET DocumentDate (s): 28 minutes ago DocumentDate_raw (n): 1432914975000 Link (s): http://www.cnet.com/uk/news/russian-hackers-behind-50-million-irs-hack-report-says/ DocumentKey (s): HTTPwww.cnet.com/uk/news/russian-hackers-behind-50-million-irs-hack-report-says/ DMSourceID (s): Google ContentType (s): Article 1 (o): [object Object] Headline (s): Charter (CHTR) Banks on Future Takeover Deals, Debts High Teaser (s): On May 29, 2015, we issued an updated research report on Charter Communications, Inc. (CHTR - Analyst Report). Charter reported disappointing first-quarter 2015 financial results. Source (s): Zacks.com DocumentDate (s): 39 minutes ago DocumentDate_raw (n): 1432914300000 Link (s): http://www.zacks.com/stock/news/176567/charter-chtr-banks-on-future-takeover-deals-debts-high DocumentKey (s): HTTPwww.zacks.com/stock/news/176567/charter-chtr-banks-on-future-takeover-deals-debts-high DMSourceID (s): Google ContentType (s): Article 2 (o): [object Object] Headline (s): Snapchat Discloses $650 Million Private Placement Teaser (s): Snapchat Inc. disclosed it has offered to sell $650 million of stock in a private placement, an opportunity for the company and insiders to profit from the messaging company's popularity. Source (s): Wall Street Journal DocumentDate (s): 50 minutes ago DocumentDate_raw (n): 1432913625000 Link (s): http://www.wsj.com/articles/snapchat-discloses-650-million-private-placement-1432913945 DocumentKey (s): HTTPwww.wsj.com/articles/snapchat-discloses-650-million-private-placement-1432913945 DMSourceID (s): Google ContentType (s): Article 3 (o): [object Object] Headline (s): Avago Technologies (AVGO) Stock Trading Up Following Price Target Hike Teaser (s): NEW YORK (TheStreet) -- Shares of Avago Technologies (AVGO - Get Report) were trading up 2.47% to $145.89 on heavy volume in late morning trading Friday, after analysts at Brean Capital upped their target for shares of the smartphone chip maker earlier ... Source (s): TheStreet.com DocumentDate (s): 1 hour ago DocumentDate_raw (n): 1432912275000 Link (s): http://www.thestreet.com/story/13168263/1/avago-technologies-avgo-stock-trading-up-following-price-target-hike.html DocumentKey (s): HTTPwww.thestreet.com/story/13168263/1/avago-technologies-avgo-stock-trading-up-following-price-target-hike.html DMSourceID (s): Google ContentType (s): Article 4 (o): [object Object] Headline (s): EPA Relents on Ethanol Mandate With Overdue Renewables Quota Teaser (s): The U.S. Environmental Protection Agency on Friday proposed cutting quotas for the use of renewable fuels, lowering the mandate for corn ethanol this year and next from the 15 billion gallons set by law. Source (s): Bloomberg DocumentDate (s): 1 hour ago DocumentDate_raw (n): 1432910680000 Link (s): http://www.bloomberg.com/politics/articles/2015-05-29/epa-cuts-mandates-for-corn-ethanol-with-overdue-renewables-quota-ia9q06do DocumentKey (s): HTTPwww.bloomberg.com/politics/articles/2015-05-29/epa-cuts-mandates-for-corn-ethanol-with-overdue-renewables-quota-ia9q06do DMSourceID (s): Google ContentType (s): Article 5 (o): [object Object] WSODIssue (s): |81093|282728 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): LED leader Cree is spinning off part of the company Link (s): http://folionation.squarespace.com/news/2015/5/29/led-leader-cree-is-spinning-off-part-of-the-company.html Thumbnail (s): DocumentDate_raw (n): 1432910460000 DocumentDate (s): May 29, 2015 DocumentDate_smart (s): 10:41 AM DocumentKey (s): 1107-290734296785735358489-7MHDF5PAN5M08KPCJ3C44RH8TL ContentType (s): Article TrackingPixel (s): Teaser (s):

LED lighting is growing in popularity, so why does market leader Cree have to spin off part of its business?

LED lighting suppliers are facing dark times. As Bloomberg notes, competition is growing while profit margins are falling. Cree, Inc. (CREE), which is down 36 percent over one year, is a leader in LED chip, components and silicon carbide (SiC) materials. The LED supplier is still richly valued at 24 times forward earnings, and management is determined to boost shareholder value. To do this, the firm announced on May 18 that it is spinning off a portion of its business.  Will the move work?

Cree will spin off its Power and RF unit by offering subsidiary Class A common stock. In theory, the semiconductor stock’s overall value should go up, so long as the market assigns a respectable price multiple to the new, publicly traded company. The market must also believe Cree will still hold value as a parent company to the spinoff. At $30.47, the fair value for Cree should be sustainable: simplifying the business structure and having two units each focused on a specific market is a positive development.

However, the spinoff does not change anything fundamentally about Cree. The firm is still struggling in the consumer space, and RF/Power is a very small contributor to Cree’s bottom line. The stock is still expensive, and there may be better semiconductor product plays to consider.

Take Vishay Intertechnology (VSH), for example. With a market capitalization of $1.92 billion, Vishay is relatively close in size to Cree, which has a $3.37 billion market cap. Vishay also boasts a much lower forward P/E of 11.81.

While Cree is spinning off parts of its business, Vishay is expanding its operations. In December, Vishay completed its acquisition of Capella, an optical sensor maker for $201.3 million. Capella makes UV and IR sensors which is used in a variety of things, like PCs, Phones, and automotive systems. Considering that some of the biggest names in lighting—Royal Philips NV (PHG) and General Electric (GE)—have left or are leaving lighting altogether, Vishay's strategy might be a wise one.

Written by Chris Lau


Click on the interactive chart to view data over time. 

1. Cree Inc. (CREE, Earnings, Analysts, Financials): Develops and manufactures light emitting diode (LED) products, silicon carbide (SiC) and gallium nitride (GaN) material products, and power and radio frequency (RF) products. Market cap at $3.42B, most recent closing price at $30.92.

 

 

2. Vishay Intertechnology Inc. (VSH, Earnings, Analysts, Financials): Manufactures and supplies semiconductors and passive electronic components in the United States, Europe, and Asia. Market cap at $1.92B, most recent closing price at $13.04.

 

 

(Monthly return data soured from Zacks Investment Research. All other data sourced from FINVIZ.)

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6 (o): [object Object] Headline (s): Teva to pay record $1.2B settlement in Provigil case Teaser (s): Teva Pharmaceutical Industries will pay a record $1.2 billion settlement to the Federal Trade Commissionf or moving to stop competitors from entering the market for the sleep disorder drug. Source (s): BioPharma Dive DocumentDate (s): 2 hours ago DocumentDate_raw (n): 1432908900000 Link (s): http://www.biopharmadive.com/news/teva-to-pay-record-12b-settlement-in-provigil-case/399976/ DocumentKey (s): HTTPwww.biopharmadive.com/news/teva-to-pay-record-12b-settlement-in-provigil-case/399976/ DMSourceID (s): Google ContentType (s): Article 7 (o): [object Object] Headline (s): Anheuser-Busch brewery shifts from beer production to can water for flood victims Teaser (s): An Anheuser-Busch brewery in Georgia has moved from producing cans of beer to churning out cans of water, which will be distributed to those affected by flooding in the Southwest. Source (s): Washington Post DocumentDate (s): 2 hours ago DocumentDate_raw (n): 1432908900000 Link (s): http://www.washingtonpost.com/news/morning-mix/wp/2015/05/29/anheuser-busch-brewery-halts-beer-production-to-can-water-for-flood-victims/ DocumentKey (s): HTTPwww.washingtonpost.com/news/morning-mix/wp/2015/05/29/anheuser-busch-brewery-halts-beer-production-to-can-water-for-flood-victims/ DMSourceID (s): Google ContentType (s): Article 8 (o): [object Object] Headline (s): Consumer Sentiment in U.S. Decreased in May to Six-Month Low Teaser (s): Consumer confidence in the U.S. fell to a six-month low in May as Americans became less sanguine about the prospects for the economy. Source (s): Bloomberg DocumentDate (s): 2 hours ago DocumentDate_raw (n): 1432908071000 Link (s): http://www.bloomberg.com/news/articles/2015-05-29/consumer-sentiment-in-u-s-decreased-in-may-to-a-six-month-low DocumentKey (s): HTTPwww.bloomberg.com/news/articles/2015-05-29/consumer-sentiment-in-u-s-decreased-in-may-to-a-six-month-low DMSourceID (s): Google ContentType (s): Article 9 (o): [object Object] Headline (s): US STOCKS-Wall St futures unchanged, set for lower open after GDP data Teaser (s): ... * Q1 GDP data shows economy contracted. * Corporate earnings down 8.7 pct. * Altera up on report of Intel takeover interest. * Futures down: Dow 47 pts, S&P 5.5 pts, Nasdaq 14.25 pts (Adds quote, updates prices). Source (s): Reuters DocumentDate (s): 3 hours ago DocumentDate_raw (n): 1432905525000 Link (s): http://in.reuters.com/article/2015/05/29/markets-stocks-usa-idINL3N0YK47M20150529 DocumentKey (s): HTTPin.reuters.com/article/2015/05/29/markets-stocks-usa-idINL3N0YK47M20150529 DMSourceID (s): Google ContentType (s): Article 10 (o): [object Object] Headline (s): US economy contracts in first quarter; dollar hurts corporate profits Teaser (s): WASHINGTON The U.S. economy contracted in the first quarter as it buckled under the weight of unusually heavy snowfalls, a resurgent dollar and disruptions at West Coast ports, but activity already has rebounded modestly. Source (s): Reuters DocumentDate (s): 11 hours ago DocumentDate_raw (n): 1432875945000 Link (s): http://www.reuters.com/article/2015/05/29/us-usa-economy-idUSKBN0OE0BF20150529 DocumentKey (s): HTTPwww.reuters.com/article/2015/05/29/us-usa-economy-idUSKBN0OE0BF20150529 DMSourceID (s): Google ContentType (s): Article 11 (o): [object Object] WSODIssue (s): |38401|260106|223505 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Open Text is embracing the cloud at whatever cost Link (s): http://folionation.squarespace.com/news/2015/5/28/open-text-is-embracing-the-cloud-at-whatever-cost.html Thumbnail (s): DocumentDate_raw (n): 1432838580000 DocumentDate (s): May 28, 2015 DocumentDate_smart (s): 21 hours ago DocumentKey (s): 1107-290734296785735357542-0ESFREKQAS8C8IA5546C3HNGN8 ContentType (s): Article TrackingPixel (s): Teaser (s):

Open Text disappointed Wall Street its quarterly guidance. Hey, no one said moving to the cloud was easy.

One weak quarter is all it takes for a company’s stock to tank. Open Text (OTEX), a software company based in Canada, reported weak fiscal third-quarter results at the end of April and, on May 20, forecast a weak outlook for the current quarter and announced pending job cuts. After drifting downward throughout 2015, the stock fell sharply from $49 and closed at $42.45 on May 21.

One of the reasons for Open Text’s big miss is the strong US dollar. This alone will cost the company $0.11 per share. Open Text is expecting revenue between $440 million to $455 million and adjusted earnings of $0.64 to $0.72 per share in its fiscal fourth quarter. The consensus estimate before the announcement was earnings of $0.89 per share on revenue of $487.8 million.

Open Text still has some appeal. Like Adobe Systems (ADBE) and Nuance Communications (NUAN), the company is shifting from license sales to cloud software sales. Furthermore, Open Text has never missed expectations, and other firms shifting towards the cloud suffered equally when it issued the weak guidance last week.

Still, there are risks. Nuance, which makes voice recognition solutions, is slowly realigning its business solutions on the cloud. Only Adobe is highly successful at the moment. The Photoshop maker convinced its users to buy yearly licenses with its Creative Cloud offering. Adobe's superior products and lack of competition have resulted in strong sales, which rose 11 percent year over year to $1.11 billion in the first fiscal quarter.

Open Text does not face that much competition in its market of enterprise content, business process and customer experience management. Revenue from the company’s first cloud services was $143.8 million in the fiscal third quarter, up 12 percent year over year. Customer service support revenue grew to $184.3 million, up 2 percent year-over-year and 10 percent on a constant-currency basis. Gross margins from support were a healthy 87 percent.

Ultimately, despite currency headwinds and slower growth this quarter, Open Text’s revenue from cloud services is improving. After the stock’s nearly 26 percent drop in 2015, it may prove a possible rebound play for investors.

Written by Chris Lau

 

Click on the interactive chart to view data over time. 

1. Adobe Systems Incorporated (ADBE, Earnings, Analysts, Financials): Operates as a diversified software company in the Americas, Europe, the Middle East, Africa, and Asia. Market cap at $40.10B, most recent closing price at $80.16.

 

 

2. Nuance Communications Inc. (NUAN, Earnings, Analysts, Financials): Provides voice and language solutions for businesses and consumers worldwide. Market cap at $5.34B, most recent closing price at $17.0.

 

 

3. Open Text Corporation (OTEX, Earnings, Analysts, Financials): Develops, markets, sells, licenses, and supports enterprise content management (ECM) solutions primarily in North America and Europe. Market cap at $5.23B, most recent closing price at $42.43.

 

 

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Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

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12 (o): [object Object] WSODIssue (s): |19744231|178782|197606|10808544 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): The beautiful game is a dirty one Link (s): http://folionation.squarespace.com/news/2015/5/27/the-beautiful-game-is-a-dirty-one.html Thumbnail (s): DocumentDate_raw (n): 1432751640000 DocumentDate (s): May 27, 2015 DocumentDate_smart (s): May 27, 2015 DocumentKey (s): 1107-290734296785735356204-16DB094ULDKVPL7ARAR37CJJ8U ContentType (s): Article TrackingPixel (s): Teaser (s):

Watch out, Sepp! FIFA has been dealt a red card by the US Justice Department in a corruption investigation.

Early Wednesday morning, Swiss police arrested seven senior FIFA officials at a Zurich hotel in connection with a US Justice Department investigation into corruption at soccer's top governing body. By late morning, the Justice Department said it had indicted 14 individuals—nine current and former FIFA officials and five corporate executives—for bribery, racketeering and money laundering, among other charges.

According to the 161-page, 47-count indictment, the 14 defendants, along with 25 co-conspirators, participated in numerous schemes over the last 24 years to make themselves rich. And they allegedly did, to the tune of "well over $150 million."

Most of the charges in Wednesday's indictment concern tournaments and related activities involving North and South America, namely CONCACAF (Confederation of North, Central America and Caribbean Association Football) and CONMEBOL (South American Football Confederation). However, the indictment also mentions bribes and kickbacks between a major U.S. athletic company and the Brazilian national soccer federation, South Africa's selection as the host of the 2010 World Cup and the 2011 FIFA presidential election, which current president, Josep "Sepp" Blatter won. 

Speaking of presidential elections, Wednesday's high-profile arrests come just two days before FIFA's next one, and Blatter is widely expected to win it. Blatter, who is seeking his fourth term as the head of FIFA, has been at the center of controversy for years despite not being charged with anything today. His right-hand man, FIFA Vice President and CONCACAF President Jeffrey Webb, wasn't so lucky. 

The Wall Street Journal has a collection of some of Blatter's scandals for the unfamiliar. Highlights include a lawsuit from FIFA executive committee members over alleged financial mismanagement, facepalm-worthy statements about female soccer players and homosexual fans and, most recently, the awarding of the 2018 and 2022 World Cup to Russia and Qatar, respectively. According to the Journal, Swiss authorities are launching a separate criminal investigation into FIFA's latest World Cup host choices.

Until Wednesday morning, FIFA's decision to hold the World Cup in Russia and Qatar had been its biggest and costliest issue. Castrol, Continental, Emirates, Johnson & Johnson (JNJ) and Sony (SNEstopped sponsoring the organization at the end of 2014 when their contracts expired. No formal reasons were given for the parting of ways, but The Telegraph reports that Sony had expressed concerned over FIFA's alleged wrongdoing in the 2018 and 2022 World Cup host selection process.

So where does that leave FIFA's current sponsors? Will they leave or stay, hoping this all blows over?

Click on the interactive chart to view data over time. 

1. Anheuser-Busch InBev SA/NV (BUD, Earnings, Analysts, Financials): Engages in brewing and selling beer in North America, Latin America, Europe, and the Asia Pacific. Market cap at $195.89B, most recent closing price at $120.06.

The stock is up 1.99% as of 2:20PM.

Subsidiary Budweiser said that it is closely monitoring the developing FIFA situation.

 

2. The Coca-Cola Company (KO, Earnings, Analysts, Financials): Distributes, and markets nonalcoholic beverages worldwide. Market cap at $179.34B, most recent closing price at $40.99.

The stock is up 0.30% as of 2:20PM.

No statement has been issued.

 

3. McDonald's Corp. (MCD, Earnings, Analysts, Financials): Operates as a foodservice retailer worldwide. Market cap at $94.50B, most recent closing price at $98.46.

The stock is up 0.01% as of 2:20PM.

McDonald's said it's in contact with FIFA over the "extremely concerning" corruption allegations, stating that it "takes matters of ethics and corruption very seriously."

 

4. Visa Inc. (V, Earnings, Analysts, Financials): Operates retail electronic payments network worldwide. Market cap at $169.67B, most recent closing price at $68.54.

The stock is up 1.17% as of 2:20PM.

Visa has already expressed "grave concern" to FIFA earlier this month over migrant workers' rights in Qatar in the leadup to the 2022 World Cup.

 

(List compiled by Mary-Lynn Cesar. Monthly return data sourced from Zacks Investment Research. All other data sourced from FINVIZ.)

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© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

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13 (o): [object Object] WSODIssue (s): |243688|58327|79521|139905|8169008|264447 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Best Buy is doing better than anyone expected Link (s): http://folionation.squarespace.com/news/2015/5/27/best-buy-is-doing-better-than-anyone-expected.html Thumbnail (s): DocumentDate_raw (n): 1432738560000 DocumentDate (s): May 27, 2015 DocumentDate_smart (s): May 27, 2015 DocumentKey (s): 1107-290734296785735355864-2MQHGJSA2JN6HRAR0EBE3VQ6N8 ContentType (s): Article TrackingPixel (s): Teaser (s):

Many thought Best Buy would close its doors in 2014. The company is still here, and, by the looks of it, doing well. 

Best Buy (BBY) is full of surprises. The electronics retailer reported a stellar first quarter, much to everyone’s surprise.  Is Best Buy’s worst finally behind it?

During the first quarter of 2015, Best Buy earned $0.37 per share on revenue of $8.56 billion. Revenue is lower than last year’s, but domestic gross profits improved by 120 basis points, or 1.20 percent, to 22.7 percent.

Unfortunately, the company forecast that domestic revenue growth would not be any higher than the low single-digits. Internal sales could also fall by as much as 35 percent due to fewer open stores. On the plus side, Best Buy is improving its performance because management is watching its costs, initiating focused marketing campaigns and investing in technology to support its business.

Best Buy is the largest electronics retailer by market cap. GameStop (GME) is a distant second, with a market cap at $4.2 billion:

At a price of around $34, Best Buy is well off its March peak of $41.26. The stock is fairly valued at 11.97 times forward earnings, but has room to move up if its profitability keeps improving. There’s also back-to-school season to consider in August, which has coincided with a rally in Best Buy shares.

For investors considering the stock, it may be best to add Best Buy shares on any pullback.

Written by Chris Lau

 

Click on the interactive chart to view data over time. 

1. Aaron's Inc. (AAN, Earnings, Analysts, Financials): Operates as a specialty retailer of consumer electronics, computers, residential furniture, household appliances, and accessories in the United States and Canada. Market cap at $2.58B, most recent closing price at $35.40.

 

 

2. Best Buy Co. Inc. (BBY, Earnings, Analysts, Financials): Operates as a retailer of consumer electronics, home office products, entertainment products, appliances, and related services primarily in the United States, Europe, Canada, and China. Market cap at $12.22B, most recent closing price at $33.90.

 

 

3. Conns Inc. (CONN, Earnings, Analysts, Financials): Operates as a specialty retailer of home appliances, consumer electronics, home office equipment, lawn and garden products, mattresses, and furniture in the United States. Market cap at $1.41B, most recent closing price at $39.54.

 

 

4. GameStop Corp. (GME, Earnings, Analysts, Financials): Operates as a retailer of video game products and personal computer (PC) entertainment software. Market cap at $4.31B, most recent closing price at $40.18.

 

 

5. hhgregg Inc. (HGG, Earnings, Analysts, Financials): Operates as a specialty retailer of consumer electronics, home appliances, and related services. Market cap at $107.61M, most recent closing price at $3.93.

 

 

6. Systemax Inc. (SYX, Earnings, Analysts, Financials): Operates as a direct marketer of brand name and private label products. Market cap at $312.95M, most recent closing price at $8.44.

 

 

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© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

14 (o): [object Object] WSODIssue (s): |197606|81931009|82867067|292976 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Shake Shack is sizzling Link (s): http://folionation.squarespace.com/news/2015/5/26/shake-shack-is-sizzling.html Thumbnail (s): DocumentDate_raw (n): 1432658220000 DocumentDate (s): May 26, 2015 DocumentDate_smart (s): May 26, 2015 DocumentKey (s): 1107-290734296785735354728-6VC6KAS57324T01MM2Q83LMLS1 ContentType (s): Article TrackingPixel (s): Teaser (s):

Popular burger chain Shake Shack is one of the hottest stocks on the market right now, but is it a bubble?

Shake Shack (SHAK) bottomed at $38.63 on February 17, and the stock keeps moving up. After taking a breather at $70, the stock rallied again and reached $92.86 on May 22. Does this burger company really deserve its $3.2 billion market cap? At this rate, each of Shake Shack's 68 locations is worth $50 million. This makes Chipotle (CMG), at $10 million a location, look inexpensive.

Shake Shack’s stock is expensive. The valuation is even more obvious when compared to McDonald’s (MCD) or Chipotle, which are valued at 20 times and 35 times forward multiples, respectively:

Shake Shack’s forward P/E is over 70. Then again, McDonald's first-quarter earnings fell by 9 percent, when adjusted for currency fluctuations, to $0.84 per share. The food chain giant is tweaking its stores in China by testing customization. It is also simplifying the menu by cutting down the number of offerings at the drive-thru.

On the other hand, Shake Shack is arguably inexpensive when compared to market darlings Amazon (AMZN), Tesla (TSLA) or even Facebook (FB). Still, the comparison is weak when comparing by valuation alone. Shake Shack is still a restaurant that sells burger and hot dogs, though the company may soon branch out into chicken sandwiches. There is no moat. Meanwhile, Facebook has a moat in social media, Amazon keeps getting bigger and Tesla’s electric cars command a high price and healthy demand.

The problem with owning Shake Shack is that a relatively inexpensive stock will still fall if other over valued ones falls, too. Tailwinds invariably become headwinds when the earnings growth rate does not justify the stock price. 

Though Q1 2015 was great for Shake Shack. The company earned just $0.04 per share, but this beat consensus by $0.07 per share. Revenue, at only $37.8 million, grew an impressive 56.3 percent. Same-store sales increased by 59.2 percent. These high-growth figures support a high multiple, but the company must continue this rate of growth indefinitely. If growth slows, the positive momentum behind the stock will slow. This would mean a lower stock price in the future.

Written by Chris Lau

 

Click on the interactive chart to view data over time. 

1. McDonald's Corp. (MCD, Earnings, Analysts, Financials): Operates as a foodservice retailer worldwide. Market cap at $94.88B, most recent closing price at $98.99.

 

 

 

2. Restaurant Brands International Inc. (QSR, Earnings, Analysts, Financials): Owns and operates quick service restaurants under the Burger King and Tim Hortons brand names. Market cap at $8.06B, most recent closing price at $39.84.

 

 

3. Shake Shack Inc. (SHAK, Earnings, Analysts, Financials): Owns, operates, and licenses Shake Shack restaurants (Shacks) in the United States, the District of Columbia, North America, Europe, and Asia. Market cap at $3.37B, most recent closing price at $92.86.

 

 

4. Yum! Brands, Inc. (YUM, Earnings, Analysts, Financials): Operates quick service restaurants. It operates in five segments: YUM China, YUM India, the KFC Division, the Pizza Hut Division, and the Taco Bell Division. Market cap at $39.28B, most recent closing price at $91.54.

 

 

(Monthly return data sourced from Zacks Investment Research. All other data sourced from FINVIZ.)

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When taking advantage of the Memorial Day sales this weekend, will you be using cash, credit or something else?

Much to countless mothers' chagrin, it's becoming increasingly less necessary for people to carry cash these days. Alternative forms of payment are growing in popularity, with the mobile payment market projected to swell to $142 billion in annual volume by 2019 from its current $50 billion.

Plastic is also having a moment. The American Bankers Association's December 2014 Credit Card Market Monitor Report found consumers went back to swiping their cards in the second quarter of the year after a rough first quarter. Monthly purchase volume rose across all risk types: $173, or 14.3 percent, for sub-prime; $363, or 10.3 percent, for prime and $512, or 8.2 percent, for super-prime.

Furthermore, after a string of high-profile security breaches at Target (TGT) and other leading retailers, the US is finally embracing the more secure chip and PIN cards. According to the Smart Payment Association, 185 million cards and modules were shipped to the US in 2014. 

Cash isn't obsolete just yet, though. Last April, the Federal Reserve Bank of San Francisco published a report on Americans' cash habits. The title of the report? "Cash Continues to Play a Key Role in Consumer Spending: Evidence from the Diary of Consumer Payment Choice." Its findings? Cash continues to play a key role in consumer spending.

The San Francisco Fed writes that although cash only makes up 14 percent of total consumer transaction activity on a value basis, it actually accounts for 40 percent of all consumer transactions. Mobile payments made up less than one half of 1 percent, though in 2019, the year when mobile payments explode, that figure is expected to rise to 1 percent.

While cash may not be a distant memory anytime soon, alternative payments are definitely encroaching on its market share. Below is a list of stocks that offer alternative forms of payment, both plastic and digital, to consumers. Give us your two cents: do you think the shift away from cold, hard cash will boost these companies' sales? 

Click on the interactive chart to view data over time. 

 

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 $756.94B, most recent closing price at $131.39.

Sales growth quarter over quarter at 27.10%.

 

2. American Express Company (AXP, Earnings, Analysts, Financials): Provides charge and credit payment card products, and travel-related services worldwide. Market cap at $82.04B, most recent closing price at $80.76.

Sales growth quarter over quarter at -2.90%.

 

3. Discover Financial Services (DFS, Earnings, Analysts, Financials): Operates as a credit card issuer and electronic payment services company primarily in the United States. Market cap at $26.37B, most recent closing price at $59.60.

Sales growth quarter over quarter at 5.20%.

 

4. eBay Inc. (EBAY, Earnings, Analysts, Financials): Provides online marketplaces for the sale of goods and services, as well as other online commerce, platforms, and online payment solutions to individuals and businesses in the United States and internationally. Market cap at $72.57B, most recent closing price at $59.74.

Sales growth quarter over quarter at 4.40%.

 

5. Google Inc. (GOOG, Earnings, Analysts, Financials): Builds technology products and provides services to organize information. Market cap at $185.32B, most recent closing price at $542.51.

Sales growth quarter over quarter at 11.90%.

 

6. MasterCard Incorporated (MA, Earnings, Analysts, Financials): Provides transaction processing and related services to customers principally in support of their credit, deposit access, electronic cash and automated teller machine payment card programs, and travelers' cheque programs. Market cap at $105.93B, most recent closing price at $92.90.

Sales growth quarter over quarter at 2.40%.

 

7. Visa Inc. (V, Earnings, Analysts, Financials): Operates retail electronic payments network worldwide. Market cap at $169.74B, most recent closing price at $69.37.

Sales growth quarter over quarter at -46.00%.

 

 

(List compiled by Mary-Lynn Cesar. Monthly return data sourced from Zacks Investment Research. All other data sourced from FINVIZ.)

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ABOUT US

© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

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