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Entries from April 2019

ams AG Is Still Cheap

April 27th, 2019 · Comments Off on ams AG Is Still Cheap

We think the shares of ams AG are still cheap, despite an impressive recovery from the lows late last year. While Apple, its biggest customer has disappointed, we can expect at least partial compensation from other customers and markets. The company’s CapEx needs will be much smaller this year. The main risks are in pricing […]

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Tags: AMSSY

Zebra Technologies Is Firing On All Cylinders

April 27th, 2019 · Comments Off on Zebra Technologies Is Firing On All Cylinders

The company is powered ahead by some favorable long-term trend, as its clients require more operational visibility. The booming sales powers margin expansion and boosts cash flow, which is invested in R&D and acquisitions, reinforcing its position. There is another pay-off, which is a strong reduction in leverage, and we think this will be followed […]

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Tags: ZBRA

The Fed Hasn’t Blown Another Asset Bubble

April 27th, 2019 · Comments Off on The Fed Hasn’t Blown Another Asset Bubble

Investors feel whiplashed by the Fed, but while this is understandable, this isn’t necessarily justified as financial markets are a bit of a side show for the Fed. The Fed is also accused of having blown another asset bubble, but it is even debatable whether there is an asset bubble, let alone the Fed being […]

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Tags: Monetary policy · The Markets

SHU Portfolio: The Turnaround At Destiny Media Has Legs

April 22nd, 2019 · Comments Off on SHU Portfolio: The Turnaround At Destiny Media Has Legs

The predicted growth acceleration is finally materializing. Costs are also increasing as the company invests in business and product development. But the shares are still reasonably priced and we think this is a growth story for some time to come, given the opportunities in front of the company. Source: SHU Portfolio: The Turnaround At Destiny […]

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Tags: DSNY

Skechers’ Future Still Looks Good To Us 

April 22nd, 2019 · Comments Off on Skechers’ Future Still Looks Good To Us 

The company suffered from a slowdown in its domestic wholesale business and currency headwinds in its international business, producing disappointing growth figures. However, margins and especially cash flow have strengthened considerably and the company’s balance sheet remains terrific. Growth is likely to accelerate in H2 and the shares aren’t expensive, in our view. Source: Skechers’ […]

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Tags: SKX

Tecnoglass Is Cheap

April 19th, 2019 · Comments Off on Tecnoglass Is Cheap

With a booming business, investors can take advantage of a depressed valuation because of a share offering. There are some negatives, cash flow is negative but about to turn and the company has a history of dilution and a fair amount of debt. But there is a nearly 8% dividend yield which adds to the […]

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Tags: TGLS

Sogou Should Bottom Out Here

April 18th, 2019 · Comments Off on Sogou Should Bottom Out Here

Rising traffic acquisition costs and macro headwinds have led to stagnation. But given that half the market cap is in cash and short-term investments, the shares are not expensive. Underneath, there are slow improvements, driven by AI and a rise in organic traffic and less aggressive traffic acquisition. Source: Sogou Should Bottom Out Here – […]

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Tags: SOGO

Investors Should Stay Clear Of Netlist

April 17th, 2019 · Comments Off on Investors Should Stay Clear Of Netlist

The company is an innovator in the combined memory and storage space (NVDIMM) and that’s validated by a deal with Samsung, but it’s unclear what the potential is here. The history of cash bleed, losses, litigation cost and really substantial dilution doesn’t bode well. The company wasn’t able to turn a profit in the up-cycle […]

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Tags: NLST

Ebix, A Cheap Play On India’s Digital Economy

April 17th, 2019 · Comments Off on Ebix, A Cheap Play On India’s Digital Economy

Much of Ebix’s business comes from EbixCash, its Indian subsidiary which generates most of its revenue through software platforms combined with third-party kiosks. This ‘phygital’ strategy is smart and reproducible on different segments, markets and even geographies. The company produces 30% operating margins and considerable free cash flow, even pays a dividend and has a […]

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Tags: EBIX

SHU Portfolio: Why We Cooled On Pareteum

April 17th, 2019 · Comments Off on SHU Portfolio: Why We Cooled On Pareteum

The company is going gangbusters and in fact the whole sector is rapidly growing. The two acquisitions the company executed recently seem a good fit. Yet the weight of evidence is that the company is too aggressive with its backlog numbers and/or conversion rates. While as of yet, there isn’t any compelling evidence that management […]

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Tags: TEUM