AlexLMX All financial numbers in this article are in Canadian dollars unless noted otherwise. Please note that oil and gas prices are always in US dollars. Introduction Buy every oil dip you see! The quote above is from a hedge fund newsletter I read yesterday. While I always call for prudent financial management, I’m one…
bjdlzx Headwater Exploration (OTCPK:CDDRF) is a Clearwater (pure play) Canadian heavy oil producer (that reports in Canadian dollars). Management is expanding into other areas as the production grows. But the clear strategy is very profitable heavy oil production. The growth story appears to be improving as management raised the capital expenditures and the guidance for…
onurdongel BrainsWay (NASDAQ:BWAY) reported strong results again in the first quarter, with continued profitability, positive free cash flow and strong growth. This strength is particularly notable in light of Neuronetics’ (STIM) relatively soft quarter, which the company attributed to the macro environment. I previously suggested that BrainsWay’s stock should continue to rerate higher as the…
Robert Way/iStock Editorial via Getty Images Tesla, Inc. (NASDAQ:TSLA) has made drastic staff cuts over the past month, maybe as high as 20% of the workforce. In the Q1 earnings call, Elon Musk stated that the plan to develop a $25,000 car, sometimes referred to as the Model 2 and code-named “Redwood,” on an entirely…
Unlock the Editor’s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Berkshire Hathaway’s cash pile swelled to a record $189bn in the first quarter of 2024 as Warren Buffett’s sprawling conglomerate continued to dump stocks, including Apple, one of its largest positions. The figure underscores the…
Weerapong Khodsom /iStock via Getty Images 1. Investment thesis LyondellBasell (NYSE:LYB) is a Dutch chemical company with operations in the Netherlands, the USA, Japan, Germany and many other important countries. The stock returned 16.9% p.a. (13.4% p.a. without dividends) by buying back 243 million shares (42.7%) and returning a lot of cash through dividends of…
luza studios Super Micro Computer, Inc. (NASDAQ:SMCI) released much anticipated fiscal third quarter results, but moreover provided an ever greater anticipated (updated) guidance. The company has seen incredible operating momentum, but as share price momentum was even greater, it was evident that expectations were sky-high. Back in February, I believed that shares were approaching bubbly…
baona/iStock via Getty Images Recently, I penned an article titled “Who’s Chasing Yield?” in which I explained that: “it’s critical to examine the “margin of safety” with the dividend, to make sure that these picks don’t turn into a so-called “sucker yield.” There are plenty of these so-called “sucker yields” in the mortgage REIT sector….
Energy Extraction On America’s Plains Ramon Cliff/iStock Editorial via Getty Images It is not too late to initiate a position in Plains GP Holdings, L.P. Class A (NASDAQ:PAGP), despite doubling the return of the S&P 500 over the past year. This large, high-quality MLP has produced a trailing 12-month total return over 40% compared to…
MicroStockHub It was a solid Q1 2024 for Customers Bancorp (NYSE:CUBI), but the market reacted negatively and punished the stock with -5.47%. Yet, estimates were beaten upward: Q1 Non-GAAP EPS of $1.68 beats by $0.05. Revenue of $181.6M (+8.1% Y/Y) beats by $16.79M. Loan growth was stagnant, and this probably affected investors’ negative reaction. However,…
Isaac Lee/iStock Editorial via Getty Images Investment Thesis U-Haul’s (NYSE:UHAL) substantial rise due to the pandemic has stalled and reversed, but the company has continued the extraordinary spending in CapEx, resulting in a historical low of its free cash flow. With a weaker demand picture emerging and less room for other strategic spending, the company…
wolv Thesis CNX Resources Corporation (NYSE:CNX) has a unique strategy, one that emphasizes free cash flow, or FCF. The natural gas producer then allocates much of that FCF to share buybacks and reducing its debt. It’s been a successful strategy, one that has produced Energy sector-leading returns on equity, total capital, and assets, as well…
Pathward Financial, Inc. (NASDAQ:CASH) Q2 2024 Earnings Conference Call April 24, 2024 5:00 PM ET Corporate Participants Darby Schoenfeld – Senior Vice President, Investor RelationsBrett Pharr – Chief Executive OfficerGreg Sigrist – Executive Vice President and Chief Financial Officer Conference Call Participants Frank Schiraldi – Piper SandlerTim Switzer – KBWDavid Feaster – Raymond James Operator…
Block, a global technology company focusing on financial services, has announced the launch of Bitcoin Conversions, a feature that allows millions of Square sellers to convert a percentage of their daily sales to Bitcoin using Cash App, according to a press release sent to Bitcoin Magazine. This collaboration between Square and Cash App empowers eligible…
DNY59 By Breakingviews Blackstone (BX) is grappling with a peculiar sort of funding mismatch. The investment shop managing more than $1 trillion says market ructions present acquisition and lending opportunities, but it is also selling less. Moreover, the growing likelihood that interest rates stay higher for longer threatens deal activity. If the dynamic persists, it…
MCCAIG A quite bizarre piece of news has recently hit the investor community which is not really being addressed by the financial media. I assume the reason that it’s not being covered by the financial media is because it deals with a complex issue involving bank regulators which is beyond the average investor’s ability to…
hapabapa Netflix (NASDAQ:NFLX) reports their financial results for their first calendar quarter of 2024, after the market closes on Thursday, April 18th, 2024. The 12/31/23 quarter was the big upside surprise as Netflix saw 13.2 million subscriber adds, vs. the 8.8 million expected, with 2.8 million coming from US and Canada, the slower-growing region. The…
Chris Gordon /iStock via Getty Images Introduction About seven months ago, I argued Fortescue (OTCQX:FSUMF) (OTCQX:FSUGY) was a good call option on the iron ore price, and I have not been disappointed with its performance. The stock is currently still up about 25% from the September 2023 share price, while the received dividend of A$1.08…
onurdongel *All financial data in this article is expressed in Canadian dollars. Enerflex Ltd. (NYSE:EFXT) is a global energy infrastructure supplier who operates out of Canada and sells their products globally. Over the past couple of years, the company has been working on implementing cost synergy strategies related to its merger with Exterran Corporation. After…
MelkiNimages Carbios (OTCPK:COOSF) is well shored up with advantaged financing, and its PET plant project, which in our last article we pointed out was early on track to completion, is already mostly financed, with industrial agreements covering the majority of the PET plant’s capacity already in place. We’re not sure exactly what sort of deals…
Jacek_Sopotnicki Investment Thesis: Warner Bros. Discovery (WBD) is a media and entertainment business that operates primarily in the segments of Studios, Networks, and DTC. Some notable brands they own include DC, Game of Thrones, Harry Potter, and many more household names while some of the primary platforms they operate through are TNT Sports, Max, and…
JHVEPhoto/iStock Editorial via Getty Images Business Overview I initiated coverage of Charles Schwab (NYSE:SCHW) in August of 2023 with a Strong Buy rating at the price of $56.46. Schwab has outperformed the S&P since, posting a 25% total return vs. 16% from the index. Historically, Schwab has outperformed the wider index marginally and industry peers…
Monty Rakusen If you look at our track record on Seeking Alpha over the last few years, it’s one that we’re generally proud of. We’ve had a number of great calls that (we hope) have helped investors identify opportunities in the market and build wealth. However, we’re not perfect, and every so often, we produce…
Trygve Finkelsen/iStock Editorial via Getty Images Polestar (NASDAQ:PSNY), the producer of great-looking, premium electric vehicles and a spin-off from Volvo Cars (OTCPK:VOLAF), is facing intensifying competition and poor unit economics, and investors looking to invest in a potential turnaround by the company, should first read this article. History with Volvo Volvo Cars is a leading…
Leon Neal I recently published my first research on British Oil & Gas Supermajor BP p.l.c. (NYSE:BP) in which I offered a deep dive into its US upstream subsidiary bpx. Given the asset’s disadvantage to key US E&P peers in terms of reserve makeup and cost competitiveness, I initiated BP at Underweight. Since then, shares…
FabrikaCr/iStock via Getty Images At what point should a company simply wind up operations and liquidate? There comes a time when certain companies seemingly no longer have a realistic path to generating shareholder value. In such cases, the best course of affairs may simply be to close the operating business and return the remaining cash…
seb_ra Zoom Video Communications (NASDAQ:ZM) initially soared after its earnings report in February, as the company posted solid results as well as authorizing a significant share repurchase program. While management appears to be still looking for M&A opportunities, the share repurchase program may have been viewed as a real catalyst for the undervalued tech stock….
James O’Neil/DigitalVision via Getty Images I last covered the Pacer US Cash Cows 100 ETF (BATS:COWZ), which focuses on U.S. stocks with above-average free cash flow / FCF yields, in early 2023. In that article, I argued that COWZ’s cheap valuation and good performance made the fund a buy. COWZ has underperformed the S&P 500…
Tim Boyle Reinventing brands is hard. Once consumers and market views of companies crystallize, management teams usually find the task of changing those perceptions difficult if not impossible. Brand equity is everything in the retail business, and when the appeal of a label diminishes, that usually marks the beginning of the end for most companies….
alfexe Introduction In October 2022, Simplify launched the Simplify Stable Income ETF (NYSEARCA:BUCK). This came out alongside the more popular (and higher risk) Simplify Enhanced Income ETF (HIGH). Both have performed very well since then. Data by YCharts Note that while HIGH has the higher total return, it has also eaten into its own principal,…
Hispanolistic Introduction I previously covered Ahold Delhaize (OTCQX:ADRNY) back in late 2021 where I argued that sustaining the robust operating margin would be key to bridging the valuation gap with US peers, with covered call selling an excellent way to position in the shares. Over the past year, European grocery retailers such as Ahold Delhaize…
RapidEye/E+ via Getty Images All investors share a goal. Making profit. How do you know when to cash in on your winners? A stock is up 20%-50%-75%. Will it keep going up? Is it about to crash? You feel you should sell, but you like that stock… Selling winners isn’t easy. Some put a limit…
XH4D/E+ via Getty Images Summary We’ve had a lot of requests to add another article to our series on MEEC to reflect the recent trial win. This article serves as a follow-up to our previous piece, which outlined the settlement reached with approximately half of the defendants involved in MEEC’s refined coal lawsuit. Both of…
RHJ Last week, I published “Cameco: Uranium Market Hype Clashes With Weakening Fundamentals,” which detailed my bearish outlook for the uranium sector and the giant Cameco (CCJ). Many uranium market investors do not understand the market’s supply elasticity. A slight increase in uranium production associated with the recent rally likely pushes uranium back into a…
zhengzaishuru When it comes to the oil and gas exploration and production market, investors have different preferences. Some, for instance, might prefer a company that is a pure-play on a specific region. Some might prefer a more diverse player. Some might prefer a company that has midstream assets included in the picture or that operates…
beckariuz I have followed the changing fortunes of Dynavax (DVAX) since 01/2017’s “Dynavax In 2017: Hero Or Zero?. My most recent article was 08/2023’s “Dynavax: Dizzy Optimism Followed -97% Q2 Net Income Decline” (“Decline”). The premise of Decline was that it had a tripartite value proposition of: HEPLISAV-B revenues in growth mode; CpG 1018 adjuvant…
bjdlzx Baytex Energy Corp. (NYSE:BTE) management reported a significant increase in cash flow compared to what it would have been had the company not acquired Ranger Oil (ROCC). The fourth quarter cash flow represented more than half of the cash flow for the fiscal year. This is now a light oil upstream company. The market…
zhengzaishuru Baytex Energy (NYSE:BTE) currently is projected to generate US$528 million in 2024 free cash flow at current strip prices. This is around US$138 million more than Baytex’s estimates from December 2023, as it benefits from improved oil strip prices. Baytex’s estimated value also benefits from an improvement in the assumed odds of it winning…
buzbuzzer/iStock via Getty Images Business Overview In my opinion, Rush Enterprises, Inc. (NASDAQ:RUSHA) doesn’t get enough praise or attention from investors. This is a business that has been around since the 60s, has been public since 1996 and over the last 20 or so years, the stock has had a CAGR of 15-20% depending on…
Gladiathor I previously suggested that Magnite, Inc.’s (NASDAQ:MGNI) strong cash flows would eventually matter, and this has proven to be the case over the past three months, with the stock up around 40%. While the business continues to face headwinds, and competition remains a threat, Magnite’s growth is starting to pick up and its margins…
onurdongel Overview Vermilion Energy (NYSE:VET) is a Canadian oil & natural gas producer, with production in North America, Europe, and Australia. The stock is listed in the U.S. & Canada (TSX:VET:CA), and the reporting currency is Canadian Dollars. I have covered Vermilion frequently over the last couple of years and those articles can be found…
spooh Outline: Vermilion Energy Inc. (NYSE:VET) had a rollercoaster share price performance in the past years. First, they paid out high dividends over the years, but then they had to cut it as debt mounted. COVID-19 hit the company in the same way as it did to others – share prices crashed – then, share…
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adamkaz Stem, Inc. (NYSE:STEM) faces a crunch in liquidity even as demand for utility-scale energy storage booms, with cash and equivalents at $114 million at the end of its fiscal 2023 fourth quarter. The direction of liquidity over the last three years does not make for a pretty view, with a perpetual dip since the…
wildpixel The main draw here is that recent spin-off Mural Oncology (NASDAQ:MURA) reported $275M in cash in their January 2024 investor presentation (as of Nov 1, 2023). That works out to approximately $16.47/share in cash, compared to a current stock price of $5.39/share. Now, the catch is that this is a biotech company investing in…
PM Images Listen here or on the go via Apple Podcasts and Spotify Why Austin Hankwitz is focused on profitability and cash flow (0:20). Russell 2000 is weirdly undervalued (3:10). This is an abridged conversation from a recent Investing Experts podcast. Transcript Rena Sherbill: Austin Hankwitz, you host Rich Habits Podcast. Writer for Seeking Alpha….
Marvin Samuel Tolentino Pineda/iStock Editorial via Getty Images Introduction Sometimes the best investments are the ones that don’t need a lot of attention. I last discussed Coca-Cola Consolidated (NASDAQ:COKE) in February 2022 and rated it a ‘strong buy’. The share price has performed really well in the past two years as the stock is up…
Bloomberg/Bloomberg via Getty Images US investors have to dig and claw to find quality high-yield names. Goldman Sachs reports that the current dividend yield on the S&P 500 is a scant 1.45% as of late February 2024. It could be a sign that the market is getting pricey, though the beaten-down Energy sector trades at…
VanderWolf-Images Introduction I have been tracking Vopak (OTCPK:VOPKF) for several years now and in the summer of 2022 I thought the company had become too cheap and I liked the stock for its 5.5% dividend yield, which was pretty good for an infrastructure company back in the day. Since that article in August 2022, the…
Reddit, the popular social media platform, has disclosed in a Securities and Exchange Commission (SEC) filing that it has invested a portion of its excess cash reserves into Bitcoin. The social media giant revealed this today as they have applied to go public and list their Class A common stock on the New York Stock Exchange…