/* Article Data (Server Side) article (o): [object Object] Content (s): Article Not Found. relatedData (o:Array(16)): 0 (o): [object Object] Headline (s): Without batteries like Tesla's, the power grid could eventually break Teaser (s): As the number of solar panels on business and home rooftops multiply, America's power grid is bearing an electrical load that it was never designed to handle: the bidirectional power transfer. Source (s): Computerworld DocumentDate (s): 17 minutes ago DocumentDate_raw (n): 1430166375000 Link (s): http://www.computerworld.com/article/2915338/sustainable-it/without-batteries-like-teslas-the-power-grid-could-eventually-break.html DocumentKey (s): HTTPwww.computerworld.com/article/2915338/sustainable-it/without-batteries-like-teslas-the-power-grid-could-eventually-break.html DMSourceID (s): Google ContentType (s): Article 1 (o): [object Object] Headline (s): Harvey Miller, 82; Lehman lawyer in bankruptcy case Teaser (s): NEW YORK - Harvey Miller, a partner in the New York- based law firm Weil, Gotshal & Manges LLP who helped create bankruptcy as a practice specialty and represented Lehman Brothers Holdings in the biggest collapse in U.S. Source (s): Chicago Tribune DocumentDate (s): 17 minutes ago DocumentDate_raw (n): 1430166375000 Link (s): http://www.chicagotribune.com/news/sns-wp-blm-news-bc-miller-obit27-20150427-story.html DocumentKey (s): HTTPwww.chicagotribune.com/news/sns-wp-blm-news-bc-miller-obit27-20150427-story.html DMSourceID (s): Google ContentType (s): Article 2 (o): [object Object] Headline (s): Engine maker defends F-35 as investigators find even more problems Teaser (s): The government watchdog reports issued this month on the $400 billion F-35 Joint Strike Fighter join a long list of critical reviews that have picked apart the program's ballooning cost, schedule delays, problems with software and even the helmet. Source (s): Washington Post DocumentDate (s): 17 minutes ago DocumentDate_raw (n): 1430166337000 Link (s): http://www.washingtonpost.com/business/economy/engine-maker-defends-f-35-as-investigators-find-new-problems/2015/04/27/40ce66e4-ed04-11e4-8666-a1d756d0218e_story.html DocumentKey (s): HTTPwww.washingtonpost.com/business/economy/engine-maker-defends-f-35-as-investigators-find-new-problems/2015/04/27/40ce66e4-ed04-11e4-8666-a1d756d0218e_story.html DMSourceID (s): Google ContentType (s): Article 3 (o): [object Object] Headline (s): Chipotle menu now GMO-free. Is GM food opposition growing? Teaser (s): On Monday, Chipotle became the first major restaurant chain to serve only GMO-free food. What does that mean for the debate around genetically altered food? Source (s): Christian Science Monitor DocumentDate (s): 28 minutes ago DocumentDate_raw (n): 1430165700000 Link (s): http://www.csmonitor.com/Business/The-Bite/2015/0427/Chipotle-menu-now-GMO-free.-Is-GM-food-opposition-growing DocumentKey (s): HTTPwww.csmonitor.com/Business/The-Bite/2015/0427/Chipotle-menu-now-GMO-free.-Is-GM-food-opposition-growing DMSourceID (s): Google ContentType (s): Article 4 (o): [object Object] Headline (s): Despite Regulations, Drones Are Taking To The Skies Teaser (s): I am a VP/Principal Architect for Cloud Technology Partners. I was the CTO for MDot Network, which won the 2010 AWS Global Startup Challenge and am the author of "Architecting the Cloud: Design Decisions for Cloud Computing Service Models (IaaS, ... Source (s): Forbes DocumentDate (s): 1 hour ago DocumentDate_raw (n): 1430160300000 Link (s): http://www.forbes.com/sites/mikekavis/2015/04/27/despite-regulations-drones-are-taking-to-the-skies/ DocumentKey (s): HTTPwww.forbes.com/sites/mikekavis/2015/04/27/despite-regulations-drones-are-taking-to-the-skies/ DMSourceID (s): Google ContentType (s): Article 5 (o): [object Object] Headline (s): Cap Gemini to buy Igate for $4 billion to challenge Accenture Teaser (s): PARIS - Cap Gemini agreed to acquire Igate for about $4 billion, giving Europe's largest provider of computer services access to more financial customers as it expands in the growing U.S. Source (s): Chicago Tribune DocumentDate (s): 6 hours ago DocumentDate_raw (n): 1430144100000 Link (s): http://www.chicagotribune.com/news/sns-wp-blm-news-bc-capgemini27-20150427-story.html DocumentKey (s): HTTPwww.chicagotribune.com/news/sns-wp-blm-news-bc-capgemini27-20150427-story.html DMSourceID (s): Google ContentType (s): Article 6 (o): [object Object] Headline (s): Mylan says Teva offer too low; criticizes stock, growth prospects Teaser (s): (Reuters) - Mylan NV (MYL.O) rejected Teva Pharmaceutical Industries Ltd's (TEVA.TA) $40 billion takeover offer on Monday, saying in a scathing letter that it grossly undervalued the company and that Mylan has no interest in payment in what it termed ... Source (s): Reuters DocumentDate (s): 6 hours ago DocumentDate_raw (n): 1430142266000 Link (s): http://www.reuters.com/article/2015/04/27/us-mylan-m-a-teva-pharm-ind-idUSKBN0NI1DE20150427 DocumentKey (s): HTTPwww.reuters.com/article/2015/04/27/us-mylan-m-a-teva-pharm-ind-idUSKBN0NI1DE20150427 DMSourceID (s): Google ContentType (s): Article 7 (o): [object Object] Headline (s): Stocks close lower despite Apple up 1.5% as biotechs lag Teaser (s): U.S. stocks closed lower on Monday, failing to hold Friday's records, as investors eyed earnings and looked ahead to the beginning of the two-day Federal Reserve meeting on Tuesday. Source (s): CNBC DocumentDate (s): 7 hours ago DocumentDate_raw (n): 1430141518000 Link (s): http://www.cnbc.com/id/102622177 DocumentKey (s): HTTPwww.cnbc.com/id/102622177 DMSourceID (s): Google ContentType (s): Article 8 (o): [object Object] Headline (s): Don't Believe Everything You Read: Lower Fuel Prices Aren't Why U.S. Airlines ... Teaser (s): The nation's largest airlines last week reported ridiculous - for them - first-quarter profits. And it had far less to do with the price of oil and jet fuel than you've probably read. Source (s): Forbes DocumentDate (s): 9 hours ago DocumentDate_raw (n): 1430133059000 Link (s): http://www.forbes.com/sites/danielreed/2015/04/27/dont-believe-everything-you-read-lower-fuel-prices-arent-why-us-airlines-are-earning-big-profits/ DocumentKey (s): HTTPwww.forbes.com/sites/danielreed/2015/04/27/dont-believe-everything-you-read-lower-fuel-prices-arent-why-us-airlines-are-earning-big-profits/ DMSourceID (s): Google ContentType (s): Article 9 (o): [object Object] Headline (s): European stocks gain as Greek hopes rise Teaser (s): Monday 19.20 BST. US stocks failed to maintain an early push into record territory although participants were hoping that results from Apple, due after the closing bell, could reinvigorate the market. Source (s): Financial Times DocumentDate (s): 17 hours ago DocumentDate_raw (n): 1430105229000 Link (s): http://www.ft.com/cms/s/0/51ba244e-ec8b-11e4-8604-00144feab7de.html DocumentKey (s): HTTPwww.ft.com/cms/s/0/51ba244e-ec8b-11e4-8604-00144feab7de.html DMSourceID (s): Google ContentType (s): Article 10 (o): [object Object] WSODIssue (s): |4038937|83889|227524 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Repent! Avocado-geddon may be upon us Link (s): http://folionation.squarespace.com/news/2015/4/23/repent-avocado-geddon-may-be-upon-us.html Thumbnail (s): DocumentDate_raw (n): 1429818780000 DocumentDate (s): April 23, 2015 DocumentDate_smart (s): Apr 23, 2015 DocumentKey (s): 1107-290734296785735317565-1BJ2LPS96O3E9UF0R2OLC7EARU ContentType (s): Article TrackingPixel (s): Teaser (s):

Sorry, guys, the avocado—your favorite berry-you-didn't-know-was-a-berry—may be about to make itself scarce.

There are a lot of fun facts you could rattle off about avocados, both botanical and etymological. For example, it's a berry. Who knew. Its Nahuatl name, ahuacatl, means "testicle," since it grows in pairs. Post-Cortés, that word was mangled in a long game of Spanish telephone until it became the considerably less raunchy abogado, "lawyer"—although you're more likely to hear aguacate or palta, depending on where you happen to be. 

Then there are some not-so-fun facts. For one, 80 percent of the avocados in the US come from California, and California is pushing Dust Bowl status. And while it's no beef, which requires about 106 gallons of water per ounce to produce, the avocado is a thirsty foodstuff, requiring 9 gallons per ounce. 

Not that Latin America is picking up any of the slack. Peru's palta harvest, predicted to be a bumper crop, will be smaller than expected, and hail in Mexico means their aguacate haul might be meager too. 

For now, guacamole is still just an extra at Chipotle (CMG), but you've been warned. Frito-Lay higher-ups might be wringing their hands a bit, because no one wants a chip without guac anymore, but a loss to the division of PepsiCo (PEP) is unlikely to move the needle from an investor's perspective. Calavo Growers (CVGW), on the other hand, had better watch out. The company, which markets and distributes avocados, is up nearly 60 percent for the year, but clear, cloudless, rainless skies loom.

 

Click on the interactive chart to view data over time. 

1. Chipotle Mexican Grill Inc. (CMG, Earnings, Analysts, Financials): 1. Chipotle Mexican Grill Inc. (CMG): Develops and operates fast-casual, fresh Mexican food restaurants in the United States. Market cap at $19.91B, most recent closing price at $641.23.

 

 

2. Calavo Growers Inc. (CVGW, Earnings, Analysts, Financials): 2. Calavo Growers Inc. (CVGW): Calavo Growers, Inc. procures and markets avocados and other perishable commodities, and prepares and distributes processed avocado products in the United States and internationally. Market cap at $860.68M, most recent closing price at $49.75.

 

 

3. Pepsico Inc. (PEP, Earnings, Analysts, Financials): 3. Pepsico Inc. (PEP): Engages in the manufacture, marketing, and sale of foods, snacks, and carbonated and non-carbonated beverages worldwide. Market cap at $144.20B, most recent closing price at $97.28.

 

 

(List compiled by David Floyd. Monthly returns data sourced from Zacks Investment Research. All other data sourced from FINVIZ.) 

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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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11 (o): [object Object] WSODIssue (s): |36276|205778|260106|223839|264204 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Nuance: value play or trap? Link (s): http://folionation.squarespace.com/news/2015/4/23/nuance-value-play-or-trap.html Thumbnail (s): DocumentDate_raw (n): 1429806540000 DocumentDate (s): April 23, 2015 DocumentDate_smart (s): Apr 23, 2015 DocumentKey (s): 1107-290734296785735317229-7QT8TESQJQ0USH7UG7HRKMAH2F ContentType (s): Article TrackingPixel (s): Teaser (s):

The company behind Siri has struggled with low profitability. At low valuations, is it a compelling play or a trap?

Nuance Communications (NUAN) was once the rising star in the smart phone world. The speech recognition software firm supplied the engine that powered Apple’s (AAPL) Siri. But when shareholders realized the low profitability from its dealings from Apple, the stock responded. Nuance fell steadily from the $20 to $28 level and last closed at $14.26. Do shareholders have any hope?

Decent quarterly results

On February 5, Nuance announced first quarter earnings of $0.25 per share on revenue of $489 million. Both figures beat consensus estimates. Unfortunately, the firm did not demonstrate any meaningful growth nor did it supply a solid outlook.  In its prepared remarks, Nuance provided the following guidance:

·       Second-quarter revenue of $459 million to $475 million

·       Earnings of $0.22 to $0.26 per share

Both figures are below consensus, although not by much. Analysts had expected revenue of around $499.5 million on $0.27 per share.

For the fiscal year ending September 2015, Nuance thinks it will earn up to $1.18 per share.

New product

On April 13, Nuance announced PowerMic Mobile, making the firm a smartwatch app and health care software play.

Analysis

Nuance traded at $13.87 recently, which implies a forward P/E of just 11.75. This is inexpensive. The operational challenges Nuance facing are not insurmountable. If management progresses in improving performance, the stock could rebound.

At the current valuation, Nuance may attract a buyer, too. That the stock is down around 14 percent in the past year will not go unnoticed by a potential suitor. A company as big as Apple might show interest:

It’s also possible that a private equity firm will look at shaking up Nuance to boost the firm’s intrinsic value. Given that other firms in the mobile space like Microsoft (MSFT), OmniVision (OVTI) and Synaptics (SYNA) trade at much higher multiples, Nuance may eventually trade up to its potential, too.

It is not clear if Nuance is a value play or a trap. Until the firm executes more effectively, the stock is unlikely to move up.

Written by Chris Lau.

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 $749.18B, most recent closing price at $128.62.

 

2. Microsoft Corporation (MSFT, Earnings, Analysts, Financials): Develops, licenses, and supports a range of software products and services for various computing devices worldwide. Market cap at $352.64B, most recent closing price at $42.99.

 

 

3. Nuance Communications Inc. (NUAN, Earnings, Analysts, Financials): Provides voice and language solutions for businesses and consumers worldwide. Market cap at $4.64B, most recent closing price at $14.26.

 

 

4. OmniVision Technologies Inc. (OVTI, Earnings, Analysts, Financials): Designs, develops, and markets semiconductor image-sensor devices. Market cap at $1.56B, most recent closing price at $26.82.

 

 

5. Synaptics Inc. (SYNA, Earnings, Analysts, Financials): Develops and supplies custom-designed human interface solutions that enable people to interact with various mobile computing, communications, entertainment, and other electronic devices. Market cap at $3.29B, most recent closing price at $89.54.

 

 

(List compiled by Chris Lau. Monthly returns sourced from Zacks Investment Research. All other data sourced from FINVIZ.)

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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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12 (o): [object Object] WSODIssue (s): |42709|1607179|100104|215985 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Nokia nabs Alcatel-Lucent Link (s): http://folionation.squarespace.com/news/2015/4/22/nokia-nabs-alcatel-lucent.html Thumbnail (s): DocumentDate_raw (n): 1429717320000 DocumentDate (s): April 22, 2015 DocumentDate_smart (s): Apr 22, 2015 DocumentKey (s): 1107-290734296785735315712-1UQGKHTJTQK9U0H4ELRP32IIFI ContentType (s): Article TrackingPixel (s): Teaser (s):

Nokia has announced a planned $16.6 billion merger with Alcatel-Lucent. 

Nokia (NOK) just made a savvy acquisition. Previously known as a smart phone maker, the map software and networking hardware company is boosting its hardware division by merging with Alcatel-Lucent (ALU). The merger values Nokia €15.6 billion, around $16.6 billion. 

Aside from a brief rally that boosted share prices to $8.30, the downtrend in Nokia's stock is clear:

The market will take its time digesting the merger, which Nokia boasts will “create an innovation leader in next generation technology and services for an IP connected world.” There are risks in the short term. Most importantly, Nokia does not expect the merger will close until the first half of 2016, meaning neither company will not realize any cost savings until then.

Quarterly results due next month

Strong quarterly results might help these companies' shares. Nokia reports on May 5, Alcatel-Lucent on May 7. Either firm could miss expectations, as management may have been distracted in the last quarter negotiating the merger.

Another buyer unlikely

It is unlikely another buyer will emerge for Alcatel-Lucent. Cisco Systems (CSCO) already made an acquisition in the virtual appliance software space. Earlier this month, it announced it would buy Embrane, a software maker for load balancing and firewall solutions.

Ericsson Telephone Co. (ERIC) is another unlikely buyer. The firm’s market cap is $40 billion, but it already has a lead over both Nokia and Alcatel-Lucent in terms of market share.

Alternative investments

Investors might look for other alternatives to Nokia. These include Motorola Solutions (MSI), Juniper Networks (JNPR), Ciena Corp. (CIEN) and ZTE Corp. (ZTCOY), a Chinese firm.

Written by Chris Lau.

Disclosure: Author holds shares of Alcatel-Lucent

Click on the interactive chart to view data over time. 

1. Alcatel-Lucent (ALU, Earnings, Analysts, Financials): Provides products, solutions, and transformation services that enable service providers, enterprises, governments, and strategic industries to deliver voice, data, and video communication services to end-users worldwide. Market cap at $11.68B, most recent closing price at $4.03.

 

 

2. Cisco Systems Inc. (CSCO, Earnings, Analysts, Financials): Designs, manufactures, and sells Internet protocol (IP)-based networking and other products related to the communications and information technology industry worldwide. Market cap at $146.45B, most recent closing price at $28.69.

 

 

3. Ericsson (ERIC, Earnings, Analysts, Financials): Provides communications equipment, professional services, and multimedia solutions to mobile and fixed networks operators worldwide. Market cap at $42.18B, most recent closing price at $12.79.

 

 

4. Nokia Corporation (NOK, Earnings, Analysts, Financials): Provides Internet and digital mapping and navigation services worldwide. Market cap at $29.24B, most recent closing price at $7.84.

 

 

(List compiled by Chris Lau. Monthly returns data sourced from Zacks Investment Research. All other data sourced from FINVIZ.)

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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.

13 (o): [object Object] WSODIssue (s): |104092|27294563|147753|269774 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Looks like millennials do buy cars after all Link (s): http://folionation.squarespace.com/news/2015/4/21/looks-like-millennials-do-buy-cars-after-all.html Thumbnail (s): DocumentDate_raw (n): 1429645620000 DocumentDate (s): April 21, 2015 DocumentDate_smart (s): Apr 21, 2015 DocumentKey (s): 1107-290734296785735314736-232JR19PB0AAVRQO0APPITR2CD ContentType (s): Article TrackingPixel (s): Teaser (s):

Turns out millennials do buy cars when there's no credit crunch happening. But which ones?

Unpacking the millennial mindset is big business, as this age cohort is entering a recovering job market and flexing its collective spending power. The issue for a number of industries is that this generation doesn't seem to be interested in their wares the way previous generations were. For a long time, the auto industry has been the unhappy poster child for this dilemma. But that might be changing. 

The conventional wisdom has long been that kids just don't buy cars anymore. Fast Company cites one statistic saying that between 2007 and 2011, the rate at which 18- to 24-year-olds purchased cars fell off almost 30 percent. The reason as determined in the article: because of mobile devices and social media, these kids don't have to move to have fun. They "make all of their connections online."

Fast Company's cited date range, 2007-2011, perfectly captures the decline from pre-crisis highs. It starts when people had well-paying jobs and credit was (way too) easy to obtain and goes to the depths of the recession, when shellshocked banks were less likely to extend a loan to an unemployed 20-year-old with a three-week credit history. Maybe that's why millennials didn't buy cars.

Millennials have since begun purchasing cars as if it were their job—likely because they can now get real jobs. They now account for nearly 30 percent of new vehicle sales, having surpassed Gen X in 2012. This development led The Atlantic's Senior Editor Derek Thompson to rethink his theory that owning a car was so Boomer. It turns out that the majority of this generation isn't as fixated on urban living, renting and public transportation as the pundits thought. 

According to J.D. Power & Associates, via The Atlantic, millennials bought over 3.5 million new cars in 2014. Edmunds reports that 78 percent of millennial auto purchases last year were used cars, giving us a figure in the neighborhood of 16 million cars. Your move, auto industry.

So what cars are millennials buying? An AutoTrader.com survey reveals that while millennials might "identify" with brands like Audi, Mercedes and BMW, they are most likely to purchase the following makes:

Click on the interactive chart to view data over time. 

 

1. Ford Motor Co. (F, Earnings, Analysts, Financials): Develops, manufactures, distributes, and services vehicles and parts worldwide. Market cap at $63.24B, most recent closing price at $15.91.

 

 

2. General Motors Company (GM, Earnings, Analysts, Financials): Operates as a global automaker. Market cap at $59.76B, most recent closing price at $37.11.

 

 

3. Honda Motor Co. Ltd. (HMC, Earnings, Analysts, Financials): Engages in the development, manufacture, and distribution of motorcycles, automobiles, and power products primarily in North America, Europe, and Asia. Market cap at $64.10B, most recent closing price at $35.01.

 

 

4. Toyota Motor Corporation (TM, Earnings, Analysts, Financials): Engages in the design, manufacture, assembly, and sale of passenger cars, minivans, and commercial vehicles. Market cap at $239.03B, most recent closing price at $138.73.

 

 

(List compiled by David Floyd. Monthly returns data sourced from Zacks Investment Research. All other data sourced from FINVIZ.)

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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): |2634746|226354|274857 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Is Travelzoo a Wall Street deal? Link (s): http://folionation.squarespace.com/news/2015/4/21/is-travelzoo-a-wall-street-deal.html Thumbnail (s): DocumentDate_raw (n): 1429632720000 DocumentDate (s): April 21, 2015 DocumentDate_smart (s): Apr 21, 2015 DocumentKey (s): 1107-290734296785735314417-7NOOVU7CNO84HU72FR1PG8DO58 ContentType (s): Article TrackingPixel (s): Teaser (s):

This travel deals site's stock saw a 30 percent rally after an earnings beat. Is there upside left in Travelzoo?

When Travelzoo (TZOO), a firm with a market cap of just $191 million, reported good quarterly results on Thursday, the stock shot up around 30 percent. Still, there may be value left in the travel deals site.

Travelzoo earned $0.13 per share on revenue of $36.49 million. Both figures beat consensus, by $0.05 per share and $1.72 million, respectively. The revenue drop of 9 percent over last year is notable, but was due to weakness in Local Deals and Getaways. The strong dollar also hurt European revenue.

Customer growth improved in the last quarter. The firm added spending for member acquisition and related marketing. This cost the firm $2 million, but resulted in the addition of more members than any other quarter over the past three years. Travelzoo had 24.5 million customers as of March 31.

Europe remains a risk for Travelzoo, due mostly to currency fluctuation. Headcount in North America also fell last quarter. This may result in lower revenue, but it also means higher productivity and profitability.

There are few value plays in the online travel space. Priceline (PCLN) trades at a forward P/E of just under 18, while Expedia's (EXPE) is just over 20. 

Travelzoo is a small cap firm and investing in it is not without risk. Still, the stock may have more upside if the company reports another strong quarter.

Written by Chris Lau.

Click on the interactive chart to view data over time. 

1. Expedia Inc. (EXPE, Earnings, Analysts, Financials): Operates as an online travel company in the United States and internationally. Market cap at $12.34B, most recent closing price at $97.40.

 

 

2. The Priceline Group Inc. (PCLN, Earnings, Analysts, Financials): Operates as an online travel company. Market cap at $61.88B, most recent closing price at $1191.42.

 

 

3. Travelzoo Inc. (TZOO, Earnings, Analysts, Financials): Publishes travel and entertainment offers from various travel and entertainment companies in North America and Europe. Market cap at $193.55M, most recent closing price at $13.14.

 

 

(List compiled by Chris Lau. Monthly returns 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.

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15 (o): [object Object] WSODIssue (s): |78281|148296|284244 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Oscar is a $1 billion startup that is changing healthcare Link (s): http://folionation.squarespace.com/news/2015/4/20/oscar-is-a-1-billion-startup-that-is-changing-healthcare.html Thumbnail (s): DocumentDate_raw (n): 1429554060000 DocumentDate (s): April 20, 2015 DocumentDate_smart (s): Apr 20, 2015 DocumentKey (s): 1107-290734296785735314850-66AJK8QV6M4BB33S9HF4C0HAMT ContentType (s): Article TrackingPixel (s): Teaser (s):

Unicorns, or highly valued startups, are a dime a dozen these days, but Oscar is the newest one in healthcare. 

Oscar has only been around since July 2013, but the New York-based health insurance startup is officially in unicorn—aka $1 billion valuation—territory. Thanks to $145 million in funding announced Monday from venture capitalist/college detractor Peter Thiel and others, Oscar is now valued at roughly $1.5 billion

Never heard of Oscar? Presently, Oscar operates in New York and New Jersey, which is why only Tri-State Area residents have probably caught a glimpse of an ad on the subway or train. The company's goal is to make the notoriously complex and miserable world of health insurance simple and pleasant. It's a tough order, but considering that one-third of Americans aren't satisfied with the way the healthcare system works and 54 percent consider a medical emergency their top financial fear, it's needed.  

So far, the response has been pretty good. Over the course of 2014, Oscar's members more than doubled from 17,000 to 40,000 and it comprises 12 to 15 percent of New York's individual health insurance marketplace. Plus, according to TechCrunch, the startup is pulling in $200 million in revenue from its enrollees. But it's not stopping there: Oscar hopes to enter California's exchange next year and Texas's marketplace in the near future.

All of this could be great news for the 33 percent of Americans who are unsatisfied with their healthcare as well as the young adults who will no longer be eligible for coverage through their parents. It could also be bad news for existing health insurance companies that seemingly reinforce the status quo.

Below is a list of health care plans stocks that could find themselves in trouble if Oscar continues to grow and successfully expands outside of the New York/New Jersey healthcare market. Each of the stocks had negative earnings per share (EPS) growth quarter over quarter. Additionally, all of the stocks are less profitable than their peers as measured by gross, operating and pretax margin.

Click on the interactive chart to view data over time. 

1. Center Corp (CNC, Earnings, Analysts, Financials): Operates as a multiline healthcare company in the United States. Market cap at $8.10B, most recent closing price at $68.15.

EPS growth quarter over quarter at -39.20%.

TTM gross margin at 11.27% vs. industry average at 20.48%.

TTM operating margin at 2.8% vs. industry average at 8.37%.

TTM pretax margin at 2.76% vs. industry average at 6.56%.

Centene's Ambetter product is available in Texas's health insurance marketplace.

 

2. Health Net Inc. (HNT, Earnings, Analysts, Financials): Provides managed health care services through its health plans and government-sponsored managed care plans. Market cap at $4.34B, most recent closing price at $56.43.

EPS growth quarter-over-quarter at -76.00%.

TTM gross margin at 15.45% vs. industry average at 20.48%.

TTM operating margin at 2.28% vs. industry average at 8.38%.

TTM pretax margin at 1.43% vs. industry average at 6.56%.

Health Net offers insurance plans for individuals in California.

 

3. WellCare Health Plans Inc. (WCG, Earnings, Analysts, Financials): Provides managed care services for government-sponsored healthcare programs in the United States. Market cap at $3.64B, most recent closing price at $82.59.

EPS growth quarter-over-quarter at -81.40%.

TTM gross margin at 11.61% vs. industry average at 20.48%.

TTM operating margin at 1.92% vs. industry average at 8.37%.

TTM pretax margin at 1.37% vs. industry average at 6.56%.

WellCare sells Medicaid plans in Texas, which decided not to expand its program.

 

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

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