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What Is Value Investing

What Is Value Investing
  • Value investing involves buying stocks which are selling at less than their worth.
  • Value investors need to maintain a high "margin of safety".
  • One must keep a long term horizon in value investing.
  Value investing is an investment philosophy which involves buying securities whose intrinsic value is higher than the current market value. In other words, paying lower price for higher value. Value investing as an investment philosophy was first propagated by Benjamin Graham and David Dodd in their 1934 text “Security Analysis”. Since then “Security Analysis” has been considered as the bible for a ...
Related Tickers: BRK.A, BRK.B continue reading ...

Current valuation and Tinder potential make IAC attractive

Current valuation and Tinder potential make IAC attractive
  • IAC incurred significant write-down charges on account of the US Supreme court ruling against Aereo.
  • Going forward, the Tinder monetization opportunity represents a good topline and bottom line growth potential.
  • IAC valuations combined with Tinder monetization potential could present investors with a good upside over the next one year. Our IAC stock analysis re iterates our positive long term outlook on IAC stock.
  IAC/InterActive corp (NASDAQ:IACI), a holding company for over 150online brands has been among our top stock picks for close to 16 months and has netted 36.5% since its addition to our top stocks portfolio. There have been a number of ...
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Twitter Takes On Facebook Officially In e-commerce Race!

Twitter Takes On Facebook Officially In e-commerce Race!
  • Twitter has officially announced that it is testing its 'buy' feature.
  • Twitter will be taking on Facebook in its e-commerce foray.
  • Twitter is risky at its current valuations and Facebook is relatively more attractive.
  In July this year, we had written about how Twitter (NYSE:TWTR) was testing the e-commerce waters with its “buy now” button. A recent Twitter blog post has made it official that the company is testing the feature on a “small percentage of U.S users (that will grow over time)”. It is now well known that social media biggies Facebook (NASDAQ:FB) and Twitter are both mulling a foray into e-commerce. We’ll look ...
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eBay's PayPal taking on Apple payments

eBay’s PayPal taking on Apple payments
  • For the first time in a while, PayPal is on the defense in a category that it has long held dominance in.
  • PayPal addresses Apple pay by launching an anti-Apple payment ad campaign, and by accepting bitcoin payments.
  • eBay launched a mobile ad marketplace in which it may generate $1.2-$1.5 billion in annual revenue eventually, on top of the fees it generates from transactions.
  • Going forward, PayPal will develop a better strategy for monetizing mobile commerce volume, but it will take a while for these developments to unfold.
  eBay (NASDAQ:EBAY) has responded in a multitude of ways over the last couple of weeks to address ...
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Alibaba IPO: Avoiding Facebook IPO mistakes

Alibaba IPO: Avoiding Facebook IPO mistakes
  • Facebook went public in a hyped IPO in 2012 that yielded a very disappointing return from the first day of trade.
  • Facebook put a very high price tag on its shares that together with a NASDAQ technical error made Facebook IPO one of the worst IPO stories ever.
  • Alibaba, unlike Facebook, put a reasonable price tag on its shares and chose the NYSE over NASDAQ as the primary market to go public.
  In May 2012, after months of anticipation and countless articles, analyses, and speculations, social media giant Facebook (NASDAQ:FB) made its Wall Street debut on NASDAQ with a disappointing 0.6% increase on the ...
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Netflix: International Expansion To Drive Long Term Growth

Netflix: International Expansion To Drive Long Term Growth
  • Netflix has expanded into 6 additional European markets.
  • Netflix’s global subscriber base continues to grow at blistering rates.
  • Netflix’s domestic subscriber base is expected to grow to 60-90 million members, whereas the international subscriber base may grow to a much larger figure.
  Netflix (NASDAQ:NFLX) continues its expansion into Europe, and this is prompting a lot of speculation over Netflix’s long-term growth potential. Given recent history, it’s likely that the company will continue to expand aggressively, as it progressively optimize its contribution margin (margin based on revenue and variable costs). The company thinks that it can improve its operating profits considerably, and that investment into ...
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LinkedIn Stock Analysis Post The Recent Rally

LinkedIn Stock Analysis Post The Recent Rally
  • LinkedIn has delivered revenue growth and monetization.
  • Recent data shows lackluster user growth and engagement.
  • LinkedIn is a risky bet at current valuations.
  LinkedIn’s (NYSE:LNKD) stock has had a great run in the past few months, rising by over 50% since its 52 week low in May 2014. LinkedIn's Q2 2014 earnings release saw the the company deliver strong revenue growth and raise its full year revenue guidance. User Monetization has been one of LinkedIn’s strength. However, in spite of the optimism that LinkedIn has generated, the company’s user growth and engagement levels aren’t as encouraging as the rest of its metrics. We look at ...
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Warren Buffett and Diversification

Warren Buffett and Diversification
  • Warren Buffett has often opposed diversification as an investment strategy, which is a central concept taught in traditional B-schools.
  • Benjamin Graham, Buffett’s Guru, on the other hand viewed Diversification as a central concept to achieve market beating portfolio returns.
  • Are the two at a conflict? A deeper look reveals interesting conclusions.
  Warren Buffett’s take on diversification Warren Buffett of Berkshire Hathaway (NYSE:BRK.A), once said, “Diversification is protection against ignorance, it makes little sense for those who know what they’re doing.” This one line summarizes his view on diversification. While it is a clear practice in the world of investments, diversification as a concept has ...
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Alibaba IPO: Who owns the Chinese giant?

Alibaba IPO: Who owns the Chinese giant?
  • Alibaba IPO shareholders will only have “claim to profits” of the Chinese owned variable interest entities without any direct ownership of these companies.
  • Investors looking at the Alibaba IPO must weigh in the risks of this complicated structure and Chinese regulations in order to arrive at an informed investment decision.
  • However, this isn’t a huge risk as large investors like Yahoo and Softbank are also exposed to the same risk and most China based companies listed in the US also have this inherent risk.
  Alibaba (NYSE:BABA), the Chinese online commerce and technology giant is all set to launch its IPO within the next ...
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Will Amazon Beat Q3 2014 Revenue Guidance?

Will Amazon Beat Q3 2014 Revenue Guidance?
  • ChannelAdvisor reported its August 2014 same store sales report this week
  • Based on the historic relationship between ChannelAdvisor numbers and Actual revenue growth reported and also change in this relationship, we model Amazon’s September same store sales growth required to beat the company’s Q3 2014 revenue guidance.
  • With ever improving ChannelAdvisor Same Store Sales numbers through the last few months, Amazon looks likely to beat Q3 2014 revenue guidance.
  ChannelAdvisor, the provider of e-commerce support services, yesterday came out with its latest Same Store Sales (SSS) for the month of August 2014. The report showed an improvement in Amazon‘s (NASDAQ:AMZN) same store sales even ...
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How To Buy Alibaba Stock?

How To Buy Alibaba Stock?
  • Alibaba will most likely begin trading on the NYSE on Sep 19 2014.
  • The chances for a retail investor to get stocks prior to listing, at the IPO price, are extremely low.
  • A good strategy would be to take up a pre IPO position in Yahoo or Softbank and use them as proxy stocks to cash in on the pre listing gain in Alibaba’s valuation.
  • Once the Alibaba listing is complete, investors can move funds from these proxy stocks to Alibaba stock, which will be available through any online brokerage account.
  Alibaba Alibaba (NYSE:BABA) IPO is on the radar of every tech investor and it ...
Related Tickers: YHOO, BABA continue reading ...

iPhone 6 set to drive Apple topline growth

iPhone 6 set to drive Apple topline growth
  • Apple announced iPhone 6 in two screen sizes, both larger than the previous iPhone models.
  • Apple’s launch of larger screen phones is in line with growing demand for bigger screen phones.
  • The demand for larger screen devices and refresh cycle of iPhone 5 users will drive iPhone 6 sales and Apple topline over FY 2015.
  • We re-iterate our positive long term outlook on Apple, as reflected in our Apple stock analysis.
  The world was recently glued to what has become one of the biggest event in technology space. Apple’s product launch event held on Sep 9, 2014 was watched around the world and Cupertino ...
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XBox One And Cloud Will Drive Microsoft Future Growth

XBox One And Cloud Will Drive Microsoft Future Growth
  • Microsoft stock has gained over 20% in 2014, with investors taking notice of Microsoft’s topline growth and free cash flow growth.
  • Microsoft is well positioned for future growth from its cloud and gaming segments.
  • Fundamentals continue to remain strong and attractive valuations combined with future growth opportunities make Microsoft a good large cap stock to invest in.
  Looking for a growth play in the large-cap tech space? Look no further than Microsoft (NASDAQ:MSFT). That's right - Microsoft, the tech behemoth whose fate has long been tied to the increasingly irrelevant PC. Things are changing at Microsoft and those changes are starting to translate ...
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Is Facebook's WhatsApp A Threat To Twitter?

Is Facebook’s WhatsApp A Threat To Twitter?
  • Some sites have reportedly found more content sharing activity on WhatsApp than Twitter.
  • Now Twitter seems to have added a WhatsApp direct sharing button on its mobile app.
  • The new feature might help Twitter but its valuations are expensive when compared to those of Facebook.
  If you've used Twitter's (NYSE:TWTR) mobile app lately, you might have noticed the addition of a green sharing button placed in a corner of the app. That button belongs to none other than arch rival Facebook (NASDAQ:FB) owned Whatsapp. That's right, Twitter has integrated a Whatsapp direct share button in its mobile app, but why? Even as Twitter works on ...
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Alibaba IPO Valuation

Alibaba IPO Valuation
  • Alibaba is scheduled to launch its IPO this week, with trading on NYSE to begin mid-September.
  • We look at potential Alibaba valuation from three perspectives.
  • Anything lower than $160 billion will be a conservative valuation and could offer tremendous upside potential for shareholders.
  Alibaba (NYSE:BABA) is set to IPO in September 2014, with reports stating a possible IPO launch on September 8. The stock could be trading on the NYSE under the ticker ‘BABA’ as soon as September 19. We today take a look into what could well be one of the largest IPO’s of all time.   Alibaba is gigantic Alibaba has a solid grip on ...
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Measuring The Risk Of Equity Shares

Measuring The Risk Of Equity Shares
  • Risk is an integral part of equity investment, making it important to understand and measure risk of an equity share.
  • Value investors judge the riskiness of a stock by looking at the fundamentals and current price levels of the stock.
  • Statistically, risk of a stock is measured by deviation of a stock returns from its mean or the market.
  The Oxford English dictionary defines risk as “A situation involving exposure to danger”. However in finance risk and return go hand in hand. The Chinese symbol of risk better explains the risk involved in finance. In fact, the Chinese Symbol of risk is nothing ...
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iWatch could boost Apple yearly profits by $8.6B

iWatch could boost Apple yearly profits by $8.6B
  • iWatch may have further contribution to Apple’s top and bottom line due to an increase in ASP.
  • Higher component costs due to sapphire will be offset through higher pricing, thus improving the profitability of the device.
  • The iWatch may be a much bigger contributor to net income and revenue than what the street is anticipating.
  Based upon new information, I raise my full-year estimates for iWatch sales from $15 billion to $16.8 billion. I estimate that profit contribution will increase from $5.5 billion to $8.6 billion. I have high conviction that Apple’s (NASDAQ:AAPL) enthusiast base of users will buy the product, and that the ...
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Ctrip Investment Is A Positive For Priceline

Ctrip Investment Is A Positive For Priceline
  • Priceline’s investment stake in Ctrip is contingent upon the conversion value of the bond and stock and whether Priceline increases its stake to 10% of the total shares outstanding.
  • The partnership between Priceline and Ctrip offers meaningful upside for both companies involved.
  • Investing into Ctrip via Priceline offers a reasonable compromise between earnings growth and valuation, versus investing into Ctrip directly.
  Recently, Priceline (NASDAQ:PCLN) invested approximately $500 million into Ctrip.com (NASDAQ: CTRP) which is an online booking and travel website. The company trades at a fairly high valuation in relation to earnings due to the relatively high growth prospects of the Chinese travel industry.   According to Ctrip.com: The ...
Related Tickers: PCLN, CTRP continue reading ...

Alibaba will outrun Amazon in E-commerce race

Alibaba will outrun Amazon in E-commerce race
  • Alibaba gains the benefit of favorable Chinese regulations and has huge international growth opportunity.
  • Alibaba remains dominant in C2C, B2C, and B2B segments putting it in the prime position to benefit from a growing Chinese middle class.
  • Organic growth in the form of higher spend per consumer, paired with monthly active user growth will continue over a long period of time (at least the next 20 years).
  • Further growth opportunity in other segments like Alipay, local deliveries, and etc. will also drive significant growth in future.
  Alibaba (NYSE:BABA) may have shut out Amazon from ever becoming a major competitor in China, while it can easily ...
Related Tickers: BABA, YHOO continue reading ...

Alibaba Poised For Further Growth

Alibaba Poised For Further Growth
  • Alibaba reported improving monetization trends, paired with robust volume growth.
  • Net income doesn’t compare very well to prior periods, but the high profitability excluding investment income reveals that Alibaba’s profit margin is respectable when compared to peers.
  • The favorable economic backdrop, paired with high growth potential in Chinese e-commerce should be considered when determining whether or not to invest into Alibaba.
  Alibaba (NYSE:BABA) recently updated its F-1 filing to reflect Q2 earnings. The reported earnings figures offered further confirmation of the strengths of the e-commerce business, along with further improvements to the gross/net profit margin figure. Alibaba continues to absorb the benefits of a ...
Related Tickers: BABA, YHOO continue reading ...

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