Category Archives: Stocks

Home Depot earnings report tomorrow morning

Home Depot (HD) is a do-it-yourself home improvement retailer. The firm operates The Home Depot stores, which are a full-service, warehouse-style stores. HD stores serve three primary customer groups; do-it-yourself (D-I-Y) customers, do-it-for-me (D-I-F-M) customers and professional customers.

homedepot

In February 2013, HD acquired Measurecomp LLC and HD components LLC. About one year later, in January 2014, HD acquired Blinds.com.

It`s only a few companies left to reveal their earnings this time, and tomorrow morning Home Depot (HD) will report their latest earnings. Last time HD reported earnings they had an earnings growth of 23%, but this time it is estimated an earnings growth of «only» 21%.

That will be down two ticks, but that`snot bad, because a 21% boost to the bottom line will be the second best quarter last year. The growth seems to continue, as the retailer has seen some solid growth on the bottom line over the past two years.

HD reported a sales growth of 3% and 6% in the first two quarters, and this growth is expected to decline to 5%. Analysts consensus is expecting $1,13 in earnings per share. Revenue is $20,500 billion YoY.

When HD reports positive earnings report Q3 like the one we will see tomorrow, it usually boost the stock price. It is expected to see similar things to happen and HD will continue to lead the industry.

Some analysts belive that the industrial retail sales companies like HD will lose market shares against the online sales. It will simply kill the market sector, but despite that, it is expected to see solid earnings report from HD tomorrow morning. Positive news for HD tomorrow is good news for long perspective investors. The stock is up 19% YTD, and 17% last three months.

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Ferrari IPO

Ferrari S.p.a is an Italian luxury sports car founded by Enzo Ferrari in 1929. Ferrari road cars are generally seen as a symbol of speed, luxury and wealth. Fiat acquired 50% of the company in 1969, and expanded its stake to 85% in 2008. Earlier this year Fiat announced its intention to sell its share in Ferrari. Piero Ferrari have a 10% stake in the company, while Fiat Chrysler Automotives have 90%.

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(Picture: Ferrari Aurea spider)

Ferrari is a strong brand, and the famous symbol of the Ferrari racing team is the Cavallino Rampante (prancing horse) black prancing stallion on a yellow shield, usually with the letters S F (Scuderia Ferrari), with three stripes of green, white and red (the Italian national colors at the top).

Ferrari sold 7,318 units in 2012. The sale dropped down to 6,922 last year, and the revenue was €2,3 billion in 2013. Up 5% from 2012. The company is struggling and in an U.S IPO they hope to raise at least $1 billion.

They struggle to compete with other automakers in Europe and the U.S, and the competition is tough. Tesla have great success with their new electric car with good comfort, technology and over 700 horsepower. Ferrari is also seen as a luxury car with a great vehicle (V8 and V12), but they are struggling. Why?

When you ask people about Ferrari, they think racing cars and especially Formula One, and that is probably an image problem. Formel One and Racing cars is not something for you and me. It`s something for Schumacher. Some people love Formel One and racing cars, but the market is unfortunately not big enough?

Ferrari F430 Spider runs on ethanol, and that hybrid will be in production next year. LaFerrari was put into production this summer. It`s called HY-KERS Concept, and the hybrid system adds more than 100 horsepower on top of the 599 Fiorano`s 612 HP.

The company has produced a number of concept cars such as Ferrari P4/5 and Ferrari SP12 EC, which have been commissioned by wealthy owners. Other quite radical cars is Ferrari Mythos and Ferrari Modulo, but the most recent concept car was produced in 2010, which is Ferrari Millechili.

The special projects program is a collaboration by Ferrari with Italian automobile coachbuilders such as Fioravanti, Pininfarina, and Zagato to build custom cars using selected Ferrari modes as a structural base. The first car under this program is the SP1, commissioned by a Japanese business executive. The second is the P540 Supersfast Aperta, commissioned by an American enthusiast.

Ferrari`s former CEO and Chairman Luca de Montezemolo, resigned from the company after 23 years, and is to be succeeded by Sergio Marchionne, CEO and Chairman of Fiat Chrysler Automobiles, Ferrari`s parent company. Marchionne merged Fiat and Chrysler into the world`s seventh-largest carmaker to better compete with leaders such as General Motors, Volkswagen AG and Toyota Motor Corp.

On 29 October 2014, the FCA group, resulting from the merger between manufacturers Fiat and Chrysler, announced the split of its luxury brand, Ferrari. The aim is to turn Ferrari into an independent brand which 10% of stake will be sold in an IPO next year.

Fiat Chrysler`s brands include Jeep, Fiat, Maserati, Alfa Romeo, Chrysler and Dodge, which all strong brands. They sold about four million cars and trucks in 150 countries last year. Fiat Chrysler declared bankruptcy right after the financial crises in 2009.

Marchionne want to raise cash to cover its expenses and said that the company will spend money on R&D and capital expenditures. The stock rose after the IPO news and Marchionne has stated that he want to increase production to 10,000 cars a year. That`s music in investors ears.

Fiat is putting its jewel on the market.

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Harley-Davidson Project LiveWire

«Don`t drink and drive». You have probably heard that before, but maybe for the last time, because now you can simply switch to put your car on autopilot. You can let the car take over and do the work for you. Just like an autopilot technology in aircraft.

HD2

The connected car trend is gaining some serious momentum, and Tesla (TSLA) is getting in on the act too, with a driverless «autopilot» feature revealed in its new Model D car. There is no doubt that the auto industry is getting increasingly high-tech, from augmented reality to infotainment systems, to driverless cars from Google (GOOGL) and Volvo (VOLVY).

But who is talking about motorcycles?

Milwaukee`s stalwart, Harley Davidson (HOG) embraces its tech side and have launched a few projects it`s been working on. One of them is LiveWire, and Harley Davidson broke away from two century-old traditions at the company, and that`s their new electric motorbike swapping its signature V-Twin engine for an electric motor.

The bike is not available for dealers yet, but Harley Davidson will take the electric bike on a cross-country tour through 30 dealers located on Route 66. Afterwards, Livewire will make its way through select cities in Canada and Europe.

The 460-pound bike boasts 74 horsepower. It can race from 0 to 60 mph in 4 seconds. The drawback is that this bike has only one gear and the engine tops out at 92 mph. In addition; there is no sound. Can you imagine a Harley Davidson without sound? It`s good for me, but what about the rider?

How cool is it to ride a bike that sounds like a tiny cat compared to a big lion?

Harley Davidson is thinking different, and the company is one of two American motorcycle manufacturers that survived the Great depression. That`s pretty impressive for a company with the motto; «We know what we`re doing, and haven`t looked for outside help», but in 2009, the stock fell from $73 to $10. A dramatic drop.

Innovation have helped them to get back again. Q3 results showed a 6,8% rise in sales. EPS is up 20,1% (compared to Q3, 2013), and net income jumped 16,9%. U.S bike sales grew by 3,4%, and global sales rose 3,8%.

Another upgrade is their Project Rushmore. Harley`s new Twin Cam 103. It`s liquid-cooled V-Twin engine. The vehicles were given a new cam shaft. The rider is given more comfort especially on hot days. New ABS brakes, a larger rigid fork, LED headlamps, and a text-to-speech infotainment system, voice recognition software, satellite radio and bluetooth connectivity.

Harley Davidson is becoming a tech company?

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Is this the next big IPO?

This is probably the next big IPO. Xiaomi technology is founded by Lei Jun, which  is China`s Steve Jobs. Along with Alibaba`s Jack Ma, he is also the face of China Inc. His company Xiaomi is expanding overseas.

Xiaomi Inc was founded in 2010 and is a privately owned Chinese electronic company headquartered in Beijing. The company develops, and sells smartphones, mobile apps, and customer electronics. Products they run is MiPhone, MiBox, MiTalk, MiHome launcher, Duokan Reader, MiCloud and MiTV. Lei Jun founded the company together with Hong Feng, Zhou Guangping, Li Wanqiang, Huang Jiangji, Lin Bin, Liu De and Wang Chuan.

Xiaomi sold more smartphones in China than Apple Inc and Samsung Electronics Co! But it is worth saying that Xiaomi has a low-cost business model. They run Google`s Android mobile OS, and has become the world`s fifth largest smart phone maker behind Samsung, Apple, Lenovi and Huawai.

They are a low-cost company and belive that when it costs you $200 to make a product, you should sell it for $600. Innovation is not a luxury item. Innovation is for everyone. That`s Xiaomi`s thoughts.

The company is looking to expand into Brazil and Mexico, and has moved beyond China to sell their products in India and Indonesia. India is the world`s second largest cellphone market after China.

Xiaomi needed money for their expansion, and borrowed $1 billion from 29 different banks for a three-year loan.

The lead bankers on the loan are Goldman Sachs Group Inc, Credit Suisse Group SA, Deutsche Bank AG, J.P Morgan Chase & Co, Bank of Tokyo-Mitsubishi UFJ, Banco do Brasil, Morgan Stanley, ICBC Asia and a subsidiary Chinese lender of Industrial & Commercial Bank of China Ltd. Xiaomi is borrowing at attractive terms and the bankers are charging them 2,325% points over London interbank offered rate for the loan it is borrowing in two tranches. Normally, company’s similar to Xiaomi are charged 2,5% points over Libor.

Xiaomi raised a fourth round of funding in August 2013, and that valued the company at $10 billion, and that is more than double its June 2012 valuation of $4 billion. The $1 billion loan now is their first overseas.

Investment banks see business opportunities with Chinese technology companies in the future. Many investors belive we are in a tech bubble, but lenders feel more comfortable now with the technology industry than they did only a few years ago.

The reason why we had a tech bubble in 2000 was that many of the companies listed on Nasdaq didn`t have income. Xiaomi sold about 18 million phones in the past year, and it is forecasting sales of 60 million units in 2014. Bubble? I would rather say; possibly the next big IPO!

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

 

 

 

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Investors expectations for Facebook is high

Facebook will report earnings for its 3rd quarter of the year after the closing bell today. They smashed the earnings estimates in July and the stock jumped 6,5% higher. The stock continues to rally after that, but have surged 14% in the past two weeks.

facebook logo

Last quarter Facebook reported earnings of 42 cents per share, while Wall Street was forecasting 33 cents. Everyone was surprised, but what now? Over the past year Wall Street has sandbagged its estimates 5 quarter in a row, and Estimize is more bullish on Facebook`s bottom line now, expecting the social media king`s EPS to beat the Street by 5 cents per share. Wall Street has left its earnings consensus flat.

It`s expected to see the company to grow by 57% at the top and 80% at the bottom line. A 57% YoY revenue increase would be down slightly. Average over the past year is 64%. An 80% EPS gain YoY is also below the average of 124%. Their growth is expected to break. $3 billion a quarter in sales makes it unprecedented to grow fast.

In the company`s previous earnings release Facebook reported 1,32 billion monthly users, and 1,07 billion monthly users on mobile. A huge number, but Zuckerberg have a plan to keep the profit piling g up.

They will increase the value of advertisements by improving data tracking, and with help from Atlas, Facebook will try to compete with Google, which is the master of data tracking and serving targeted advertisements which is gold for marketers worldwide.

Mark Zuckerberg want to offer best in the class mobile experience. At the beginning he was worried that the app was too difficult to manage. He was worried that the app was clunky on mobile, and trying to do too many things at once. So far it looks like his plan is paying off as Facebook is making a killing on mobile advertisements.

They will also try to expand the user base by connecting more people to the internet across the globe. When Zuckerberg outlined his goal to connect the world to the internet last summer, only 2,7 billion (1/3 population of the planet) had access to the internet. So far, they have done a great job to sign up new members as they have over 1 billion monthly users.

It`s easy to see why investors are so bullish on Facebook. The only point of concern might be that Facebook has performed so well over the past year that expectations have gotten ahead of themselves.

Facebook is up 47,4% YTD. Will they beat the Street this time?

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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