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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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