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Monday, November 30, 2015

Daily Stock Pick: MET (MetLife Inc.)

Daily Stock Pick: MET (MetLife Inc.)

MetLife, Inc. provides insurance and financial services to individual and institutional customers. It offers life insurance, annuities, automobile and homeowner's insurance and retail banking services to individuals as well as group insurance, reinsurance and retirement and savings products and services. The company operates its business through six segments: Retail, Group, Voluntary and Worksite Benefits, Corporate Benefit Funding, Latin America, Asia, and Europe, the Middle East and Africa. The Retail segment organized into two businesses: Life and Other, and Annuities. The Life and Other business products include variable life, universal life, term life, whole life, disability, property and casualty. The Annuities business offers a variety of variable and fixed annuities that are primarily sold to individuals and tax-qualified groups in the education, healthcare and not-for-profit sectors. The Group, Voluntary and Worksite Benefits segment is organized into two businesses: Group, and Voluntary and Worksite. The Group insurance products and services include life, dental, group short- and long-term disability and accidental, death and dismemberment coverages. The Voluntary and Worksite products and services include long-term care, prepaid legal plans, critical illness and property and casualty products. The Corporate Benefit Funding segment provides funding and financing solutions that help institutional customers mitigate and manage liabilities primarily associated with their qualified, nonqualified and welfare employee benefit programs using a spectrum of life and annuity-based insurance and investment products. The Latin America segment engages in the accident and health insurance, savings oriented pension product and credit insurance. The Asia segment engages in the life insurance, accident and health insurance, retirement and savings products and credit insurance. The Europe, the Middle East and Africa segment operates in 31 countries across EMEA, which is engaged in the life insurance, accident and health insurance, retirement and savings products and credit insurance. Metlife was founded on 1999 and is headquartered in New York, NY

MET long position, Target $54.06, Stop loss $48.55

52 week low $44.49
52 week high $58.23


Revenue/Employee 1,036,397.00
Income Per Employee 92,824.00
Total Asset Turnover 0.08

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Monday, July 13, 2015

Stock Market Recomendation this Week: LNKD

LinkedIn Corp.

Industry: Business Training & Employment Agencies

Sector: Industrials

Description: LinkedIn Corp. operates an online professional network on the Internet. The company's proprietary platform enables members to create, manage and share their professional identities online, build and engage with their professional networks, access shared knowledge and insights, and find business opportunities. It product lines include Talent Solutions, Marketing Solutions and Premium Subscriptions these three product lines are sold through two channels, an offline field sales organization which engages with both large and small enterprise customers, as well as an online, selfserve channel. LinkedIn was founded by Allen Blue, Reid G. Hoffman, Jean-Luc Vaillant, Konstantin Guericke and Eric Ly in November 2002 and is headquartered in Mountain View, CA.

We see a strong opportunity on LNKD.
The company reported the 1Q fiscal results on April 30th 2015. 
Reported 0.57 cts vs estimated 0.56, revenues of $638 millions vs a year ago of $473 millions, year over year +34.9%.
The 4Q fiscal results were 0.61 cts vs estimated of 0.53, revenues of $643.43 vs a year ago $473 millions, year over year +43.9%.
The company is beating the analyst estimates since August 2011.
We are optimistic about the next earnings report and for a long term exposure.

We see a target of $270 in the short term, actually is trading at $212, so the proyectable profit should be around 27%.
Mostly analyst are bullish on the stock with an average target of $260, we attached last Upgrades/Downgrades for LNKD:

52 week low:  $156.3052 week High: $276.18


Current Ratio:4.59
Cash Ratio: 3.90


P/E Current:-1,615.00
P/E Ratio (with extraordinary items): -587.35
Price to Sales Ratio: 12.71
Price to Book Ratio: 8.64


Gross Margin: 76.08
Operating Margin: 1.63
Pretax Margin: 1.41
Net Margin: -0.71

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Monday, June 8, 2015

ETF recommendation: Financial Sector XLF

ETF recommendation: Financial Sector XLF

XLF is a fund that provide a low cost approach to invest in a portfolio of stocks that represent the financial sector index.

The market crash in 2008 become the huge stock fall in all sectors including Financial, Medical Care and Utilities.
The most affected was the financial sector because the bank home loans was the main factor of the economic crisis.

The sector is growing at a slow rate due to many factors like the FED rate unchanged, the weak dolar and the multi million legal claims suffered by banks and financial institutions.

We think there is an opportunity in the sector right now and a possibility to recover the prices.
The sector is far away from the highs previous to the 2008 financial crisis.

The main components of the XLF fund are: 

Citigroup Inc. C
Bank of America Corp. BAC
JPMorgan Chase & Co. JPM
Wells Fargo & Co. WFC
Morgan Stanley MS
Berkshire Hathaway Inc. Cl B BRK.B
American International Group Inc. AIG
American Express Co. AXP

The ETF has not a significant trend line since 2011 but we expect a movement to follow a bull trend line in the next months.
We see a target price of $28 with a profit margin of around 12.5% in the short time.
The ETF is actually trading around $25, the RSI is still low at 54.28 and a volume below the average of 30.439.739.

Investment Information

YTD return: 0.11%
5 yr avg return: 13.52%
Market Cap: 18.20B
Net Assets: 18.10B
NAV: 24.64
Shares Outstanding: 733.80M
Avg Daily Vol: 25.83M
Dividend Yield: 1.46%
Dividend: 0.09
Ex Dividend Date: 03/20/15

52 week low: $21.55
52 week high:$25.14

Monday, June 1, 2015

Stock Recommendation for June: Intel corp (INTC) recommends Intel (INTC):

Industry: Semiconductors

Sector: Technology

Intel corp was born in California in 1968 and then reincorporate in Delaware in 1989.
The Company designs and manufactures integrated digital technology platforms. A platform consists of a microprocessor and chipset, and may be enhanced by additional hardware, software, and services. Its platforms are used in computing applications, such as notebooks, desktops, servers, tablets, smartphones, automobile infotainment systems, automated factory systems and medical devices. 

We see a strong opportunity on INTEL, the company reported better than expected 1Q of 2015 results on April 14th.
The company reported 0.41 cts per share vs estimated of 0.41$ cts, revenues came up to $12781 millions vs a year ago $12764, yr over yr increase of 0.1%.
The 4Q os 2014 reported 0.74 cts per share vs estimated 0.66 cts, revenues of $14721 millions vs a year ago of $13834, yr over yr increase of 6.4%.
INTC corp is beating the market revenues and earnings since 4 quarterly of 2013 that shows an increase in sales and revenues.

INTC has recently announces the purchased of Altera corp (ALTR) in a $16.7 billion all cash deal for $54 per share.
It is a strategic movement for the market.
Altera has the technology with FPGA which can basically surpass this. Intel to be in business as geometries shrinks has to make moves in these areas. Buying Altera is one of the three companies that can do it. Garrity concluded.
The strategic alliance could bring more technology to advance in the chip market.

We estimate a target price of $37 for the short term in line with the most popular broker analyst, attached last analyst upgrades or downgrades on INTC:

52 week low: 27.12
52 week high: 37.90

Dividends: 0.24
Div yield: 2.83%
Market Cap: $163.48 millions

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Thursday, May 28, 2015

Stock Market Recommendation NVDA (NVIDIA CORP)


We see a strong opportunity on NVDA based on strong earnings releases in the last 2 years.
On May 7th NVDA posted 1Q fiscal earnings of $0.33 cts per share vs estimate of $0.33 cts, revenues came up to $1150 millions vs year ago $1100 millions, yr/yr up 4.5%.
The last quarterly of 2014 posted earnings of $0.43 cts per share vs estimate of $0.36, revenues of $1251 millions vs year ago of $1100 millions, up 9.4% yr over year.
The company reported strong results and revenues since 2 year ago and is growing fast over the competitors AMD, INTC and QCOM.


NVIDIA Corporation operates as a visual computing company in the United States, Taiwan, China, the rest of Asia Pacific, Europe, and other Americas. The company operates through two segments, GPU and Tegra Processors. The GPU segment offers processors, which include GeForce for PC gaming; Quadro for design professionals working in computer-aided design, video editing, special effects, and other creative applications; Tesla GPU accelerators for researchers, deep learning, and big-data analysts; and GRID for cloud-based streaming on gaming devices. The Tegra Processor segment provides processors that integrate a computer onto a single chip under the Tegra brand name; DRIVE automotive computers, a computing platform for advanced driver assistance systems and digital cockpits; and tablet and portable devices for mobile gaming under the SHIELD name. Its products are used in gaming, enterprise, high performance computing and cloud, and automotive markets. The company sells its products primarily to original equipment manufacturers, original design manufacturers, system builders, motherboard manufacturers, add-in board manufacturers, and retailers/distributors. NVIDIA Corporation was founded in 1993 and is headquartered in Santa Clara, California.

We see a potential growth in the short term with a target price of $25, potential profit of around 13% with the late trade of $22.02.
Analysts are positive regarding the stock with an average target price of $24, as seen on the attached spreadsheet table.

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Thursday, May 21, 2015



INDUSTRY: Specialty Retailers

Netflix, Inc., an Internet television network, engages in the Internet delivery of TV shows and movies directly on TVs, computers, and mobile devices in the United States and internationally. The company operates in three segments: Domestic Streaming, International Streaming, and Domestic DVD. It also provides DVDs-by-mail membership services. The company has approximately 57 million customers in approximately 50 countries. Netflix, Inc. was founded in 1997 and is headquartered in Los Gatos, California.

We see a strong opportunity on NFLX based on past earnings and the possibility to provide the service in China.
NFLX is in talks with a Chinese media same founder of Alibaba Group Holding Ltd (NYSE: BABA)

NFLX has reported 1Q results on April 15th of 0.77 cts vs estimate of 0.63 cts, revenues came $1573 millions vs a year ago $1270 millions, year over year +23.9%.
4Q results reported 0.72 cts vs estimated 0.44 cts, revenues $1485 millions vs a year ago of $1175 millions, year over year +26.4%.
3Q results reported 0.96 cts vs vs estimated 0.91 cts, revenues $1223 millions vs a year ago of $884 millions, year over year +38.3%.

Netflix Inc is growing very fast in the last 4 years beating the consensus earnings since April 2011.
We estimate a target for NFLX in the short term of $690.

Analyst are optimist about the stock, mostly of them upgraded the stock in the 2015:


Gross Margin: 31.83
Operating Margin: 7.31
Pretax Margin: 6.35
Net Margin: 4.85
Return on Assets: 4.28
Return on Equity: 16.72
Return on Total Capital: 11.47
Return on Invested Capital: 11.48


Current Ratio: 1.48
Current Ratio: 0.60

52 week low: 315.54
52 week high: 628.50

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Friday, May 15, 2015

Market report: Natural Gas (NYMEX)

Market report: Natural Gas (NYMEX)

The natural gas has climbed more than 8% since the beginning of the month and is actually an attractive instrument to buy.
June Natural gas settled at $3.01 per million British thermal units with a gain of 4.7% this week.
Natural gas in an effective fuel because it is efficient and clean and it is available from domestic resources.
The production of has increased due to advanced in technology to extract the gas.
The low cost of natural gas has become attractive to replace other energy sectors like electricity.
The domestic demand for natural gas is growing faster and become an active instrument to trade.

The number of rigs in may is 894, more than 1000 rigs has been cut since 2014 but the production is still growing reaching a record of 74.3 billions cubic feet per day in December 2014.

Source: EIA

For that reason the gas price slumped as much as 28% since May 2014.
We see an opportunity in the gas market and estimate a price growth in the short term due to an increase in the forecast demand for the year and next years to come.

52 week low: 2.48
52 week high: 4.26


52 week low: 12.28
52 week high: 26.42

The United States Gas fund ETF is entering in a bull trend line and is a good alternative to trade the gas.

Thursday, May 14, 2015

Stock Market Report: Starbucks Corp (SBUX)

Stock Market Report: Starbucks Corp (SBUX)

Industry: Restaurants & Bars

Starbucks Corp. engages in the manufacture and sale of coffee and tea. The firm operates through the following segments: Americas; Europe, Middle East, and Africa; China/Asia Pacific; Channel Development; and Other. Its brand portfolio includes Starbucks Coffee, Seattle's Best Coffee, Tazo Tea, Evolution Fresh, La Boulange, and Torrefazione Italia Coffee. The company was founded in 1971 and is headquartered in Seattle, WA.

We see an excellent opportunity with SBUX, the company reported 2Q results on April 23rd of 0.33 cents per share vs consensus of 0.33 cts, revenues of 4563.5 millions vs estimate of 3873.8 millions +17.8 yr/yr.
The 1Q of 2015 reported 0.80 cts per share vs consensus of 0.80 cts, revenues of 4803.2 millions vs estimate of 4239.6 millions +13.3% yr/yr.
The 4Q of 2014 reported 0.77 cts per share vs consensus of 0.74 cts, revenues of 4181 millions vs estimate of 3788.8 millions +10.4% yr/yr.

The company revenues are growing faster and we estimate a target price of $57 in the short term.

Analyst estimates are positive during this year:

52wk Range: 34.64 - 52.09
Avg Vol (3m): 8,047,850
Market Cap: 74.37B
P/E (ttm): 29.26
EPS (ttm): 1.69
Div & Yield: 0.64 (1.30%)
Rev. per Employee $92,640

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Monday, May 11, 2015

Stock Market Report: GoPro (GPRO)

Stock Market Report: GoPro (GPRO)

GoPro, Inc. manufactures and sells camera and camera accessories. It provides mountable and wearable cameras and accessories, which refers as capture devices. The company sells products through retailers, wholesale distributors and on the website. GoPro was founded on February 14, 2004 and is headquartered in San Mateo, CA.

We see an excellent opportunity with GPRO, the company reported 1Q results on April 28th of 0.24 cents per share vs consensus of 0.18 cts, revenues of 363.10 millions vs estimate of 235.70 millions.

The 4Q of 2014 reported 0.99 cts per share vs consensus of 0.70 cts, revenues of 633.9 millions vs estimate of 361.40 millions.
The Photographic Equipment & Supplies industry is growing fast and GPRO is a top performer.

We estimate a target price of 66 in the short time.

The last analyst estimates are positive with a target average price of $65:

Source: Briefing

52wk Range: 28.65 - 98.47
Avg Vol (3m): 6,515,130
Market Cap: 6.35B
P/E (ttm):         53.38
EPS (ttm): 0.92

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Wednesday, May 6, 2015

Stock Market Report: Apple (AAPL)

Stock Market Report: Apple (AAPL)

Apple, Inc. designs, manufactures, and markets mobile communication and media devices, personal computers, portable digital music players, and sells a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. Its products and services include iPhone, iPad, iPod, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and OS X operating systems, iCloud, and accessories, service and support offerings. The company also sells and delivers digital content and applications through the iTunes Store, App Store, iBooks Store, and Mac App Store. It sells its products worldwide through its retail stores, online stores, and direct sales force and third-party cellular network carriers, wholesalers, retailers, and value-added resellers to the consumer and also sells third-party iPhone, iPad, Mac and iPod compatible products, including application software, and accessories, through its online and retail stores. The company was founded by Steven Paul Jobs, Steve Wozniak and Ronald Gerald Wayne on April 1, 1976 and is headquartered in Cupertino, CA.

Source: MarketWatch

The stock is trading at 123.97 -1.41% today.

Apple reported financial results for its fiscal 2015 second quarter ended March 28, 2015. The Company posted quarterly revenue of $58 billion and quarterly net profit of $13.6 billion, or $2.33 per diluted share. These results compare to revenue of $45.6 billion and net profit of $10.2 billion, or $1.66 per diluted share, in the year-ago quarter. Gross margin was 40.8 percent compared to 39.3 percent in the year-ago quarter. International sales accounted for 69 percent of the quarter's revenue.
In the first quarter reported $3.06 per share vs estimate of $2.60, revenues of $74600 vs consensus of $5759, year over year +29.5%.
The company is growing fast due to Iphone(R) and MAC(R) sales, it breaks all time record performance.

Last recommendations from Analyst are favorable:

Source: Briefing

We see a potential growth on AAPL stocks in the short term to a target price of $150-$160.

52 week low: 82.90
52 week high: 134.54

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Monday, May 4, 2015

The Oil Market speculation

It seems the oil rig count falls for 21st straight week.
The market price for oil is still volatile with NYMEX jun 2015 at $58.51 -1.05% and Brent Crude at $66.07 -0.68%.
The recent rally for oil in April of 25% was interrupted by recently data.
"The possibility of a return of oil supplies from Iraq, Iran or Libya, and the potential for a rise in U.S. drilling rig activity, Morgan Stanley said".
April data on manufacturing activity showed a decline in China, but activity in the eurozone was seen as robust.
The crude oil inventories for US last week was 1.9M vs consensus of 2.1M meanwhile the API data shows that crude supplies rose 4.2 million barrels for the week ended April 24 (three times more than the 1.4 million-barrel increase forecast by analysts surveyed by Platts).
The demands vs supply are increasing according to the forecast from IEA. 

Source: International Energy Agency (IEA)

It is clear the US economy may not be benefiting from the collapse in oil price over the past 10 months.
The oil falls have direct impact on the US economy, thousand of workers are losing their jobs on oil industry.
It is not clear the price of the oil for the near future, so we maintain our recommendations cautious on oil prices.

Crude Oil - Electronic (NYMEX) Jun 2015
52 week low: 45.93
52 week high: 98.22

Brent Crude (ICE EU) Jun 2015

52 week low: 50.10
52 week high: 109.76

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Friday, May 1, 2015

Stock Recommendation for May recommends Visa (V):

Visa Inc. is a payments technology company. The Company is engaged
in operating a processing network, VisaNet, which facilitates authorization, clearing and settlement of payment transactions across the world. The Company provides its services to consumers, businesses, financial institutions and governments in more than 200countries and territories for electronic payments.

Visa has reported better-than-expected results for the fiscal second quarter on Thursday.
The company reported a quarterly profit of $1.55 billion, or $0.63 per share, versus a year-ago profit of $1.6 billion, or $0.63 per share.
Its revenue increased 8 percent year-over-year to $3.41 billion from $3.16 billion. However, analysts were expecting a profit of $0.62 per share on revenue of $3.34 billion, up 7.8% over a year ago.

We expect a potential upside based on positive news:

The Chinese Government announced that it would open its domestic market to foreign card payment networks according to Reuters article:

The move should allow foreign players such as Visa Inc and MasterCard Inc, the world's two largest credit and debit card suppliers, direct access to a market valued at $6.84 trillion last year. This measure is set to end a near monopoly held by domestic player China UnionPay Co Ltd, and would allow Visa and MasterCard to challenge the state behemoth. The move is also set to resolve a longstanding trade dispute between China and the United States. In 2012, the World Trade Organization ruled that China's policies on electronic payment providers discriminated against foreign card companies. In a separate article on Bloomberg, Barclays analyst said that both Visa and MasterCard could double their purchase volumes by 2023 if they gain access to the Chinese market.

52 week high $69.98
52 week Low $48.80

The brokers estimates a consensus target of $73

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