Friday, July 22, 2016

Chipotle: Avoid Chiptomania

Chipotle misses Q2 earnings estimates, but the restaurant concept does return to profits.
The company is seeing improving traffic trends from the Chiptopia loyalty program, but the program comes at a high cost.
The stock continues to trade at manic levels and far exceed the values of other strong restaurant concepts that don't face food safety issues.
Chipotle Mexican Grill (NYSE:CMG) remains a shell of its prior self in all ways except valuation. The company reported that Q2 earnings results missed analyst estimates, yet the stock is bouncing around in the after hours far above $400. The market is holding on to slight traffic improvements from the new loyalty program, when the reality isn't that impressive.
Read the full article on Seeking Alpha. 

Disclosure: Long ZOES

Friday, July 8, 2016

Zynga: Finally A Mobile Winner

The recent success of a mobile game ushers in a new era for Zynga.
A big mobile hit will change the market perception of the game developer.
The stock still offers a very compelling valuation despite trading at the 52-week high.
The biggest rap of Zynga (NASDAQ:ZNGA) since the peak of the Facebook (NASDAQ:FB) gaming platform was the lack of a solid mobile lineup. The game developer hired Don Mattrick to usher in the shift to mobile, but the company struggled to make the shift fast enough.

Read the full article at Seeking Alpha. 

Disclosure: Long ZNGA

Thursday, June 30, 2016

Bank Of America: Stress Free Investment

Bank Of America passed the Fed stress test with flying colors.
The bank is set to substantially increase capital returns without stressing the capital ratios.
The stock is a screaming buy that now offers decent yield support.
Based on the chart of Bank Of America (NYSE:BAC), the market repeatedly stresses over the prospects of the large financial. The stock has taken repeated hits over the last year despite relatively stable earnings and strong capital ratios.
Read the full article on Seeking Alpha

Disclosure: No positions mentioned. Please read the disclaimer page for more details.

Monday, June 27, 2016

Citigroup: Look For Capital Return Catalyst

Citigroup passes the 2016 stress test with flying colors.
The bank stock took a huge hit due to Brexit.
The bank is perfectly aligned to announce a big capital return increase as the stock hits recent lows.
Despite strong CCAR results, Citigroup (NYSE:C) ended down over 9% and is trading near recent lows around $40 due to Brexit. In essence, the bank is doing what it can but external events continue hammering the stock whether justified or not.
Read the full article on Seeking Alpha. 

Disclosure: Long C

Saturday, June 25, 2016

Is Potash Finally Ready To Run?

Potash trades around multi-year lows as the fertilizer markets fail to meet expectations.
Belarus and Russia signal a possible cooperation that might provide some relieve to the potash market.
The stock has limited upside as the company fails to produce enough earnings to cover the dividend over the next couple of years.
After nearly five years of declining stock prices, Potash Corp. (NYSE:POT) is finally showing some signs of stability. The foundations of any rally in the stock remain shaky as the long-term supply issues aren't resolved by production cuts.
Read the full article on Seeking Alpha.

Disclosure: No position. Please review the disclaimer page for more details.