/* Article Data (Server Side) article (o): [object Object] Content (s): Article Not Found. relatedData (o:Array(16)): 0 (o): [object Object] Headline (s): FOREX-Dollar gains as US growth supports rate-hike view Teaser (s): ... * U.S. Q2 GDP data supports view on Fed rate hike. * Greenback gains against major currencies. * FT report on IMF raises doubt about Greece bailout (Updates trading with FT report on IMF/Greece). Source (s): Reuters DocumentDate (s): 17 minutes ago DocumentDate_raw (n): 1438271775000 Link (s): http://www.reuters.com/article/2015/07/30/markets-forex-idUSL1N10A27I20150730 DocumentKey (s): HTTPwww.reuters.com/article/2015/07/30/markets-forex-idUSL1N10A27I20150730 DMSourceID (s): Google ContentType (s): Article 1 (o): [object Object] Headline (s): IMF board says Fund cannot join Greece bailout talks now: FT Teaser (s): WASHINGTON The International Monetary Fund can participate in discussions over the latest financial rescue for Greece but cannot officially join the talks until after the fiscally beleaguered nation has agreed to comprehensive reforms, the Financial ... Source (s): Reuters DocumentDate (s): 1 hour ago DocumentDate_raw (n): 1438269075000 Link (s): http://www.reuters.com/article/2015/07/30/us-eurozone-greece-imf-idUSKCN0Q421920150730 DocumentKey (s): HTTPwww.reuters.com/article/2015/07/30/us-eurozone-greece-imf-idUSKCN0Q421920150730 DMSourceID (s): Google ContentType (s): Article 2 (o): [object Object] WSODIssue (s): |54201|100281|273612|274387 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Batman: Arkham Knight sales are heating up the video game industry Link (s): http://folionation.squarespace.com/news/2015/7/30/batman-arkham-knight-sales-are-heating-up-the-video-game-ind.html Thumbnail (s): DocumentDate_raw (n): 1438268040000 DocumentDate (s): July 30, 2015 DocumentDate_smart (s): 10:54 AM DocumentKey (s): 1107-290734296785735429619-37709R4OS434CIKK6BUOOS510F ContentType (s): Article TrackingPixel (s): Teaser (s):

Hardware and software sales are up, and Batman: Arkham Knight has played a role in the growth.

Video games are doing well. Activision (ATVI) or Electronic Arts (EA) are already up significantly in reponse to strang demand for games. And even firms with diversified businesses will get a bump as video game and hardware sales rebound.

According to NPD Group, a market research firm, the Batman: Arkham Knight title topped the June software chart and is one of the reasons hardware sales are up 8 percent year-over-year in the US, with eighth-generation consoles, e.g. Xbox One, seeing a 15 percent increase. Game sales are up 21 percent. 

Strong consumer interest in games bodes well for companies like Time Warner (TWX). The success of Batman: Arkham Knight—Time Warner subsidiary Warner Bros published the game—is good news for shareholders.

For investors interested in pure game makers, look at Take-Two (TTWO). The stock is up nicely, but not like EA which is up 100 percent in the last year:

The Grand Theft Auto franchise, developed by Take-Two subsidiary Rockstar Games, helped by GTA Online, a multiplayer online platform, and downloadable content (DLC) should mean further upside ahead.

Written by Chris Lau

 

 

Click on the interactive chart to view data over time. 

1. Activision Blizzard Inc. (ATVI, Earnings, Analysts, Financials): Publishes online, personal computer (PC), console, handheld, and mobile games of interactive entertainment worldwide. Market cap at $18.87B, most recent closing price at $25.98.

 

 

2. Electronic Arts Inc. (EA, Earnings, Analysts, Financials): Develops, markets, publishes, and distributes game software and content for video game consoles, personal computers, mobile phones, tablets and electronic readers, hand held game players, and the Internet. Market cap at $22.53B, most recent closing price at $72.18.

 

 

3. Take-Two Interactive Software Inc. (TTWO, Earnings, Analysts, Financials): Develops, and distributes interactive entertainment software, hardware, and accessories worldwide. Market cap at $2.66B, most recent closing price at $31.43. 

 

 

4. Time Warner Inc. (TWX, Earnings, Analysts, Financials): Operates as a media and entertainment company in the United States and internationally. Market cap at $72.66B, most recent closing price at $88.11. 

 

 

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

Analyze These Ideas: Getting Started

Dig Deeper: Access Company Snapshots, Charts, Filings

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.

3 (o): [object Object] Headline (s): Average US rate on 30-year mortgage falls to 3.98 percent Teaser (s): WASHINGTON (AP) - Average long-term U.S. mortgage rates fell for a second straight week, with the key 30-year rate slipping below 4 percent. Source (s): Chron.com DocumentDate (s): 1 hour ago DocumentDate_raw (n): 1438266375000 Link (s): http://www.chron.com/news/article/Average-US-rate-on-30-year-mortgage-falls-to-3-98-6414827.php DocumentKey (s): HTTPwww.chron.com/news/article/Average-US-rate-on-30-year-mortgage-falls-to-3-98-6414827.php DMSourceID (s): Google ContentType (s): Article 4 (o): [object Object] Headline (s): US STOCKS-Wall St lower at the open after GDP data Teaser (s): ... * Second-qtr GDP rises at 2.3 pct vs 2.6 pct est. * Weekly jobless numbers rise. * Facebook, P&G fall after results. * Skechers jumps as results beat expectations. Source (s): Reuters DocumentDate (s): 2 hours ago DocumentDate_raw (n): 1438264350000 Link (s): http://in.reuters.com/article/2015/07/30/markets-stocks-usa-idINL3N10A5HU20150730 DocumentKey (s): HTTPin.reuters.com/article/2015/07/30/markets-stocks-usa-idINL3N10A5HU20150730 DMSourceID (s): Google ContentType (s): Article 5 (o): [object Object] Headline (s): P&G's slow turnround frustrates analysts Teaser (s): Analysts expressed frustration with the slow pace of Procter & Gamble's turnround after a collapse in fourth-quarter profit and muted outlook sent shares in the world's largest consumer products group down nearly 4 per cent. Source (s): Financial Times DocumentDate (s): 2 hours ago DocumentDate_raw (n): 1438264086000 Link (s): http://www.ft.com/cms/s/0/1b13cc00-36ab-11e5-b05b-b01debd57852.html DocumentKey (s): HTTPwww.ft.com/cms/s/0/1b13cc00-36ab-11e5-b05b-b01debd57852.html DMSourceID (s): Google ContentType (s): Article 6 (o): [object Object] Headline (s): Fiat Chrysler's Profit Jumps as North America Margins Improve Strongly Teaser (s): Fiat Chrysler Automobiles FCAU 5.23 % NV reported a two-thirds jump in second-quarter profit on Thursday as the Italian-American car maker showed strong improvement in its North America margins and consolidated a timid turnaround in its European ... Source (s): Wall Street Journal DocumentDate (s): 3 hours ago DocumentDate_raw (n): 1438261908000 Link (s): http://www.wsj.com/articles/fiat-chryslers-profit-jumps-as-north-america-margins-improve-strongly-1438261879 DocumentKey (s): HTTPwww.wsj.com/articles/fiat-chryslers-profit-jumps-as-north-america-margins-improve-strongly-1438261879 DMSourceID (s): Google ContentType (s): Article 7 (o): [object Object] Headline (s): Applications for jobless aid rise Teaser (s): More people sought U.S. unemployment benefits last week, though the increase was from a very low level and the figures still point to a healthy job market. Source (s): Los Angeles Times DocumentDate (s): 3 hours ago DocumentDate_raw (n): 1438260300000 Link (s): http://www.latimes.com/business/la-fi-jobless-claims-20150730-story.html DocumentKey (s): HTTPwww.latimes.com/business/la-fi-jobless-claims-20150730-story.html DMSourceID (s): Google ContentType (s): Article 8 (o): [object Object] Headline (s): Economy bounces back: GDP grows 2.3% in second quarter Teaser (s): The U.S. economy bounced back in the second quarter on stronger consumer spending, exports and home construction, and its performance in the first quarter wasn't as feeble as initially believed. Source (s): USA TODAY DocumentDate (s): 3 hours ago DocumentDate_raw (n): 1438259705000 Link (s): http://www.usatoday.com/story/money/2015/07/30/second-quarter-gdp-growth/30854705/ DocumentKey (s): HTTPwww.usatoday.com/story/money/2015/07/30/second-quarter-gdp-growth/30854705/ DMSourceID (s): Google ContentType (s): Article 9 (o): [object Object] Headline (s): Businesses fume as Congress lets Export-Import Bank stay dead Teaser (s): A small crop-duster manufacturer and a Texas company that exports oil equipment fret about losing 25 percent to 40 percent of their sales. Source (s): Politico DocumentDate (s): 6 hours ago DocumentDate_raw (n): 1438248001000 Link (s): http://www.politico.com/story/2015/07/businesses-fume-as-congress-lets-ex-im-stay-dead-120798.html DocumentKey (s): HTTPwww.politico.com/story/2015/07/businesses-fume-as-congress-lets-ex-im-stay-dead-120798.html DMSourceID (s): Google ContentType (s): Article 10 (o): [object Object] Headline (s): Facebook drops on earnings; Whole Foods falls to 52-week low Teaser (s): Mondelez International Inc., T-Mobile US Inc., Western Digital Corp., Facebook Inc. and Whole Foods Market Inc. are among notable movers in Thursday's trade as the parade of high-profile earnings continues. Source (s): MarketWatch DocumentDate (s): 17 hours ago DocumentDate_raw (n): 1438209677000 Link (s): http://www.marketwatch.com/story/time-warner-cable-conocophillips-mondelez-linkedin-earnings-in-focus-2015-07-29 DocumentKey (s): HTTPwww.marketwatch.com/story/time-warner-cable-conocophillips-mondelez-linkedin-earnings-in-focus-2015-07-29 DMSourceID (s): Google ContentType (s): Article 11 (o): [object Object] WSODIssue (s): DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Windows 10 has finally arrived Link (s): http://folionation.squarespace.com/news/2015/7/29/windows-10-has-finally-arrived.html Thumbnail (s): DocumentDate_raw (n): 1438185420000 DocumentDate (s): July 29, 2015 DocumentDate_smart (s): Jul 29, 2015 DocumentKey (s): 1107-290734296785735428691-3S507NMJ2TSHGV0L0B4977P7JO ContentType (s): Article TrackingPixel (s): Teaser (s):

The day everyone was waiting for after Windows 8 came out in 2012 has arrived: the release of Windows 10.

Microsoft (MSFT) released Windows 10, its newest operating system software, on Wednesday. This is the first new Windows product since 2012, the same year that the heavily-lambasted Windows 8 came out and PC sales first declined. And in an effort to ensure Windows 10's success and widspread adoption, Microsoft is offering free upgrades to current users with Windows 7 or above.

As of 11:48 AM EST, Microsoft shares are up 2.10 percent.

While Windows 10 has received glowing reviews, the slowdown in the PC market remains an obstacle for Microsoft. According to market research firm IDC, global PC shipments declined by 2.8 percent to 308.6 million units in 2014. On the positive side, this was less than analysts' projected 4.8 percent drop. Furthermore, the Wall Street Journal reports that business customers are likely to install the software in 2016.

12 (o): [object Object] WSODIssue (s): |45294|286571 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): A Tale of Main Street vs. Wall Street: Wal-Mart and Amazon Link (s): http://folionation.squarespace.com/news/2015/7/29/a-tale-of-main-street-vs-wall-street-wal-mart-and-amazon.html Thumbnail (s): DocumentDate_raw (n): 1438185060000 DocumentDate (s): July 29, 2015 DocumentDate_smart (s): Jul 29, 2015 DocumentKey (s): 1107-290734296785735428677-5ANVPOOPHUJMQ8JL6S5G86L3TL ContentType (s): Article TrackingPixel (s): Teaser (s):

E-commerce's meteoric growth is sending Amazon's shares on a tear while Wal-Mart shares are on the decline.​

Excitement over the growth in Amazon.com’s (AMZN) Amazon Web Services, or AWS, was so strong that the stock rallied to $580.57 intraday on July 24. The stock’s price-multiples are beyond stratospheric, and bullishness for the company is very strong.

Amazon reported a 20 percent increase in sales in its second-quarter earnings. Free cash flow was up around fourfold, at $4.37 billion; in the prior year, it was $1.04 billion. Net income was $92 million, or $0.19 per share. Presently, Amazon’s stock boasts a forward P/E of 183.29.

Amazon’s stock performance compared to that of a traditional retailer like Wal-Mart (WMT) speaks volumes: online sales will keep getting bigger and will take market share from brick-and-mortar businesses.

After reaching a high of $90.97 in January, Wal-Mart shares have fallen steadily and are down 15.8 percent since the beginning of the year. The stock is trading around $72. Meanwhile, Amazon is up 69.9 percent over the same period.

Amazon’s valuations appear stretched, but the demand for AWS will only grow. That, along with the popularity of online retail shopping, are the two reasons the stock is richly valued.

A contrarian investor may prefer Walmart. With a forward P/E under 15, Wal-Mart is also expanding its online retailing segment. It recently opened a fulfillment centre in Bethlehem, Pennsylvania. This puts Wal-Mart in direct competition with Amazon and will require significant investment for the firm. Given the low valuation, it is not expensive for investors to consider Wal-Mart.

If Wal-Mart’s online channel is successful, then that could put an end to the downtrend in its share price. 

Written by Chris Lau

 

Click on the interactive chart to view data over time. 

1. Amazon.com Inc. (AMZN, Earnings, Analysts, Financials): Operates as an online retailer in North America and internationally. Market cap at $246.54B, most recent closing price at $526.03.

 

 

2. Wal-Mart Stores Inc. (WMT, Earnings, Analysts, Financials): Operates retail stores in various formats worldwide. Market cap at $233.52B, most recent closing price at $72.10.

 

 

 

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

Analyze These Ideas: Getting Started

Dig Deeper: Access Company Snapshots, Charts, Filings

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.

13 (o): [object Object] WSODIssue (s): |45563793|72887506|34453364 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): From Google to LinkedIn, everyone is looking at ad revenue Link (s): http://folionation.squarespace.com/news/2015/7/28/from-google-to-linkedin-everyone-is-looking-at-ad-revenue.html Thumbnail (s): DocumentDate_raw (n): 1438110360000 DocumentDate (s): July 28, 2015 DocumentDate_smart (s): Jul 28, 2015 DocumentKey (s): 1107-290734296785735427840-358D1UN64BGPM37R1CE2NJQ36N ContentType (s): Article TrackingPixel (s): Teaser (s):

Ad revenue is Google's bread and butter, and it's becoming more important to Facebook and LinkedIn too.

Google (GOOG) impressed the market when it reported its second-quarter results on July 16. Revenue was up 11 percent year over year, but that is not the reason investors were happy. The firm is focusing on its core strengths, and this has the market excited.

In the second quarter, Google earned $6.99 per share on revenue of $17.72 billion. The higher revenue was encouraging, but it does not justify the stock’s P/E of 29. Fortunately, Google is reigning in costs. In the past, the firm spent heavily on robotics, self-driving cars, social media and Google Glass. None of the initiatives are accretive to earnings.

Ad sales still make up the majority of Google’s revenue. With $12.4 billion in ad revenue from Google sites and $3.6 billion from other sites, the company is still a digital advertising giant. Facebook’s (FB) ad sales may eventually overtake Google’s, but that may take some time.

 A few years ago, Facebook did not have any ads on mobile. In the last year, user engagement stood at one in seven minutes on mobile. Instagram also helped the social media company win a large share of mobile users’ time. By February, Facebook had two million active advertisers.

In the first quarter of 2015, Facebook’s advertising revenue grew by 46 percent, with 73 percent coming from the mobile channel. Total ad revenue was $3.3 billion. For the second quarter, Facebook expects revenue to weaken primarily due to the strong dollar.

Google’s focus back on its core businesses should help boost online ad sales. Investors already expect Facebook’s dominance in social media to continue. Expectations are high on the jobs board market front, too. 

LinkedIn (LNKD) is up as much as Facebook in the last three years:

In the first quarter of 2015, LinkedIn generated $638 million in revenue. Much of that came from subscriptions to the career networking website. Ad revenue accounted for $119 million during the quarter, up 38 percent year over year.

When LinkedIn reports on July 30, the stock could rocket higher. The company warned last quarter that new product releases and a transition in the company’s sales force may negatively hurt the company’s short-term outlook. 

Written by Chris Lau

 

Click on the interactive chart to view data over time. 

1. Facebook Inc. (FB, Earnings, Analysts, Financials): Operates as a social networking company worldwide. Market cap at $265.94B, most recent closing price at $94.17.

 

 

 

2. Google Inc. (GOOG, Earnings, Analysts, Financials): Builds tech products and provides services to organize information. Market cap at $428.79B, most recent closing price at $627.26.

 

 

3. LinkedIn Corporation (LNKD, Earnings, Analysts, Financials): Operates an online professional network. Market cap at $28.46B, most recent closing price at $220.66.

 

 

 

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

Analyze These Ideas: Getting Started

Dig Deeper: Access Company Snapshots, Charts, Filings

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.

14 (o): [object Object] WSODIssue (s): |86785487|6616168|9622118|73328048 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): US infrastructure is aging and in dire need of a refresh Link (s): http://folionation.squarespace.com/news/2015/7/27/us-infrastructure-is-aging-and-in-dire-need-of-a-refresh.html Thumbnail (s): DocumentDate_raw (n): 1438028640000 DocumentDate (s): July 27, 2015 DocumentDate_smart (s): Jul 27, 2015 DocumentKey (s): 1107-290734296785735426843-0PVE5NC2CPSCD1QQK379IT7TT4 ContentType (s): Article TrackingPixel (s): Teaser (s):

Our country relies on it, but very few much-needed improvements to US infrastructure are taking place.

New York Governor Andrew Cuomo and Vice President Joe Biden made a joint appearance Monday afternoon to announce major infrastructure upgrades to LaGuardia Airport. Adding to Biden's "third-world country" description of LaGuardia, Cuomo said the airport was "un-New York" and revealed that construction on a new LaGuardia airport will begin next year. The project is expected to cost the Port Authority of NY & NJ $4 billion.

LaGuardia is but one example of US infrastructure that badly needs an update. There are the Hudson River rail tunnels—which service Amtrak and NJ Transit trains between New York and New Jersey—the Albion River Bridge in coastal California and the nation's wastewater and drinking water systems, to name a few.

According to the American Society of Civil Engineers' 2013 report card, which assesses and grades all segments of US infrastructure, things are in poor shape. The overall grade was a D+, and an estimated $3.6 trillion would need to be invested in infrastructure by 2020 to improve the situation.

Per Governing.com, the five largest infrastructure projects currently underway in the US are the Dulles International Airport Corridor Metrorail Project, Otay Mesa East port facility construction, modernization of O'Hare International Airport, expansion of the Crescent Corridor freight rail network and replacing the Alaskan Way Viaduct. Combined the projects will cost $21.4 billion. 

While there are trillions that need to be invested in US infrastructure, the fact remains that they haven't been yet. Perhaps this is why infrastructure ETFs with exposure to potential US projects haven't been performing well. In fact, all of the following funds have underperformed the market on a monthly quarterly and year-to-date basis. 

Could the LaGuardia airport project help some of these ETFs turn things around?

Click on the interactive chart to view data over time. 

1. Deutsche X-trackers S&P Hedged Global Infrastructure ETF (DBIF, Earnings, Analysts, Financials): Seeks to track the performance of equity securities of infrastructure issuers in developed markets. Net assets under management: $3.53M, most recent closing price: $23.77.

The fund has underperformed the market by -3.22% over the last month, -5.54% over the last quarter and -4.66% since the beginning of the year.

 

2. SPDR S&P Global Infrastructure ETF (GII, Earnings, Analysts, Financials): Seeks to reflect the stock performance of companies within the infrastructure industry, principally those engaged in management, ownership and operation of infrastructure and utility assets. Net assets under management: $97.83M, most recent closing price: $46.08.

The fund has underperformed the market by -4.46% over the last month, -8.40% over the last quarter and -3.64% since the beginning of the year.

 

3. iShares Global Infrastructure ETF (IGF, Earnings, Analysts, Financials): Seeks to replicate the S&P Global Infrastructure Index. Net assets under management: $1.20B, most recent closing price: $40.05.

The fund has underperformed the market by -4.09% over the last month, -8.00% over the last quarter and -3.79% since the beginning of the year.

 

4. DJ Brookfield Global Infrastructure ETF (TOLZ, Earnings, Analysts, Financials): Seeks to replicate Dow Jones Brookfield Global Infrastructure Composite Index. Net assets under management: $25.99M, most recent closing price: $40.55.

The fund has underperformed the market by -5.60% over the last month, -10.04% over the last quarter and -7.10% since the beginning of the year.

 

(Monthly return data sourced from Zacks Investment Research. Assets data sourced from Yahoo! Finance. All other data sourced from FINVIZ.)

Analyze These Ideas: Getting Started

Dig Deeper: Access Company Snapshots, Charts, Filings

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.

15 (o): [object Object] WSODIssue (s): |21167564|45304298|210195|90065765 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): What is NCR, the company behind ATMs, worth? Link (s): http://folionation.squarespace.com/news/2015/7/27/what-is-ncr-the-company-behind-atms-worth.html Thumbnail (s): DocumentDate_raw (n): 1438016040000 DocumentDate (s): July 27, 2015 DocumentDate_smart (s): Jul 27, 2015 DocumentKey (s): 1107-290734296785735426587-1771A52F86OFS0TR77MQT0M8KF ContentType (s): Article TrackingPixel (s): Teaser (s):

How much is that ATM manufacturer in the window? In the case of NCR, it's $10 billion.

ATM-maker NCR Corporation (NCR), which boasts a market capitalization of $5.2 billion, is in play. Two private equity firms—Blackstone (BX) and Carlyle (CG)—are teaming up to buy the company for $40 a share, or $10 billion.

NCR is in the business of running transactions. This may seem boring, but last year, it generated $6.5 billion in annual sales and is expected to see $6.81 billion at the end of 2015.

The stock is trading at a discount to the bidding price, but it is not inexpensive. Its P/E is 31.33, while the forward P/E is around 10.

With the way shares are trading, it is uncertain if the buyout will happen at all. Current shareholders are valuing the stock at the right level because the purchase price would include NCR’s roughly $3.2 billion debt.

Another reason is that the electronic payment process industry is a better investing option than NCR. There is already strong interest for cryptocurrency, but that is not an investment idea. PayPal (PYPL) is a legitimate business that holds significant potential. The company made $2.16 billion in revenue in Q4 2014.

PayPal is growing. The company acquired Xoom, a digital remittance company. It also bought Paydiant, a white-label mobile wallet platform. Lastly, PayPal’s Braintree unit services businesses by providing them with online payment services.

NCR may or may not be bought out, but if it is, there is some upside. For investors too impatient to wait, PayPal is another transaction-centric company that has the potential.

Written by Chris Lau

 

Click on the interactive chart to view data over time. 

1. The Blackstone Group L.P. (BX, Earnings, Analysts, Financials): Provides alternative asset management and financial advisory services worldwide. Market cap at $45.26B, most recent closing price at $38.26.

 

 

2. The Carlyle Group LP (CG, Earnings, Analysts, Financials): Specializes in direct and fund of fund investments. Market cap at $8.43B, most recent closing price at $26.15.

 

 

 

3. NCR Corporation (NCR, Earnings, Analysts, Financials): Provides technologies and services that enable businesses to connect, interact, and transact with their customers in the financial industry worldwide. Market cap at $5.20B, most recent closing price at $30.70.

 

 

4. PayPal Holdings Inc. (PYPL, Earnings, Analysts, Financials): Operates as a technology platform company that enables digital and mobile payments on behalf of consumers and merchants worldwide. Market cap at $45.14B, most recent closing price at $37.0.

 

 

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

Analyze These Ideas: Getting Started

Dig Deeper: Access Company Snapshots, Charts, Filings

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.

*/ undefined

Article Not Found.

Articles