seekingalpha
Author page description
January 9
- Penguin Solutions Earnings: Upgrading To Buy After Fiscal Q1 Surprise1. Penguin Solutions, Inc. (PENG) reported strong Q1 2025 earnings, boosting its stock by over 15% and proving skeptics wrong. 2. The company focuses on AI infrastructure and large-scale data center clusters, positioning itself well for future AI adoption. 3. Despite expected revenue growth moderation in H2 2025, the company is likely to exceed Q2 2025 revenue estimates, supporting a 15x EPS valuation.
- Gorilla Technology: Impressive Growth Vs. Poor Cash Flow Conversion1. The company has a robust revenue and profitability outlook with a large backlog and strong pursuit of multi-million-dollar deals. 2. The cash flow conversion profile is impaired due to high receivables from major government customers. 3. The P/E valuations are at a discount, but distorted by delays in cash flow conversion compared to revenue recognition. 4. Technical analysis shows a bullish trend but at a key resistance area, potentially muted outperformance against the S&P500.
- Overpriced Optimism: Why S&P Global's Valuation Deserves Scrutiny1. S&P Global's current EV/EBITDA multiple of 25 is overly optimistic; 2. Analysts' growth estimates of 12% are likely unrealistic; 3. Rising operational costs and debt could hinder future growth.
- Lockheed Martin: Recession Proof Your Portfolio And Dividends With LMT1. Lockheed Martin provides reliable and growing dividends with a 22-year streak and a current yield of 2.83%, making it an ideal choice for dividend growth investors. 2. The company has a strong capital allocation strategy, including significant share buybacks, resulting in a shareholder yield of 5.25%. 3. Lockheed Martin's robust balance sheet and stable cash flows from government contracts ensure financial stability and consistent shareholder rewards.
- Textron: Buy This Overlooked Aviation, Defense, And Industrial Conglomerate1. Textron Inc. is an undervalued mid-cap conglomerate with strong brand awareness; 2. Its diverse revenue streams include aviation, helicopters, industrial products, and defense systems; 3. The company has solid financial health with a BBB credit rating and consistent share buybacks.
- Rigetti Computing: Huang Pops The Quantum Bubble1. Rigetti Computing's speculative valuation led to a nearly 50% price drop after Nvidia's CEO commented on the distant scalability of quantum computing; 2. The article argues that Rigetti's fundamentals don't justify its valuation; 3. The author estimates a fair value of $595M with a negative margin of safety, recommending avoiding the stock despite short-term momentum.
January 8
- Generational Wealth - Our Favorite Dividend Stocks To Build A Lasting Legacy1. The article highlights three dividend stocks for building generational wealth; 2. These stocks offer stability and consistent income growth; 3. Each stock has a strong, reliable track record; 4. The focus is on long-term investment strategy.
- Newmont Stock: A 'Once-In-A-Generation' Buy 2.01. I discussed NEM's merits as a 'Once in a generation buy' last March; 2. The stock surged by 75% following that article until late October 2024; 3. The stock has recently dropped by over 33%; 4. I discuss why it is worth buying back in now.
- Why Realty Income's 6% Yield Makes It A Must-Buy For Dividend Investors1. Realty Income offers a 6% yield and long-term growth potential at a 33% undervalued price; 2. The company's low-cost capital allows for nearly unlimited growth; 3. Realty Income has demonstrated strong cash flow and occupancy through economic downturns, positioning it as a stable dividend aristocrat; 4. The company's entry into data centers positions it for growth in the AI infrastructure market.
- MicroStrategy Is A Coiled Spring About To Jump Higher1. MicroStrategy is expanding its Bitcoin holdings using innovative financial tools; 2. The company is reducing leverage and increasing optionality through ATM offerings; 3. MSTR plans to increase authorized share counts for future BTC purchases and potential stock splits; 4. The offering of perpetual preferred shares signals market expansion; 5. Despite risks, MSTR's business model and investor interest suggest impressive growth; 6. Convertible bonds and preferred stock in Q1 2025 may drive stock higher with increased BTC yield.
- Devon Energy: A Turnaround Story In The Making1. Devon Energy is rated a BUY due to its counter-cyclical investment opportunity and significant free cash flow growth from the Grayson Mill acquisition. 2. The market has overlooked the GM acquisition on the eve of the first full quarter operating under DVN. 3. The addition of this high oil cut producer will add $200 million in FCF in Q4 despite the commodity weakness.
- QuantumScape: The Uptrend Is Just Getting Started1. QuantumScape's development of solid-state lithium metal cells positions the company as a key player in the EV battery niche. 2. As the niche grows, QS should be able to maintain sufficient liquidity to grow and achieve profitability sooner than expected. 3. The potential size of the solid-state battery market could significantly narrow the gap with the lithium-ion battery market in the next 10-12 years, making QuantumScape a potential 10-bagger in the next few years. 4. The analyst initiates coverage with a 'Buy' rating.
- VICI Properties: A Top REIT For 20251. VICI Properties' stock dip has increased its yield to 6%, making it an attractive opportunity for passive income investors at the beginning of 2025. 2. The trust's entertainment-focused real estate portfolio, with 100% occupancy and significant EBITDA growth, is a key strength. 3. VICI Properties' dividend payout ratio is stable and comparable to Realty Income, offering inflation protection with CPI-linked rent increases.
- Why You're Not Bullish Enough On 7%-Yielding Energy Transfer1. President-elect Trump's policies are expected to favor the American midstream industry by reducing regulations and increasing domestic output; 2. Energy Transfer LP stands to benefit significantly from these policy changes, making it a high-yielding, undervalued investment with strong growth potential; 3. ET has outperformed the S&P 500 significantly, reinforcing its 'Strong Buy' rating and promising both income and growth opportunities.
- Microsoft: I Hate AI, But This Is The Only Tech Stock I'm Buying1. AI is both overhyped and a significant invention of the last decade; 2. The short-term impact of AI is overestimated; 3. Fundamental questions about AGI remain unanswered, making true AGI unlikely soon; 4. Microsoft is uniquely positioned to navigate the AI revolution and market backlash.
January 7
- Coca-Cola And PepsiCo: Own Both Or Lose Big This Year1. PEP and KO are both undervalued; 2. Owning both stocks benefits from complementary operational philosophies; 3. 2025 is expected to be a strong year for these low beta stocks with strong brands.
- Argan: Lots To Like, But Priced To Perfection1. AI and advanced computing developments are bringing energy infrastructure companies into focus, with Argan experiencing significant share price growth; 2. Despite the sector's promising future, the rapid rise in Argan's shares raises concerns about market over-valuation; 3. The author initiates a 'Hold' rating on Argan, suggesting it may be moving beyond its intrinsic value.
- Hershey: Forget The Takeover And Focus On What Matters1. Hershey's stock experienced volatility due to takeover speculation, but has resumed its downtrend driven by contracting sales and higher margins. 2. Despite headwinds, Hershey remains a leading confectionary brand with a solid revenue stream and a forward dividend yield of 3.24%. 3. Its current problems could be temporary or can be fixed, and the author rates Hershey a 'buy' near potential support at $160-162.
- Philip Morris: Shift To Smoke-Free Sparks Steady Dividend Growth1. Philip Morris International aims to be 66% smoke-free by 2030, leveraging high-margin smoke-free products to mitigate regulatory risks and boost profits. 2. PM's acquisition of Swedish Match and US IQOS rights enhances its smoke-free product portfolio, targeting significant growth in nicotine pouches and heated tobacco units. 3. PM's financials show strong revenue growth and expanding operating margins, with a 4.5% dividend yield and plans to reinstate buybacks post-deleveraging by 2026.
- Brookfield Renewable: Diversified Clean Energy Leader1. The share of renewables in global electricity production has increased from 21% in 2012 to over 30% today, and is projected to reach 46% by 2030. 2. Brookfield Renewable has a diversified portfolio, strategic investments in emerging technologies, and partnerships, making it a top pick for long-term shareholders. 3. Inflation-linked revenues ensure stable cash flows, making it a solid choice for long-term dividend growth and portfolio diversification.
- Nvidia: Expect Shares To Soar Higher On 2025's AI Spending Frenzy1. Nvidia's 2024 revenue surged 86% to $113.3 billion, driven by hyperscaler spending on data center capital expenditures; 2. Hyperscalers like AWS, Microsoft, Meta, and Google will invest $300 billion in AI data centers in 2025; 3. Nvidia's 90% AI GPU market share and upcoming Blackwell architecture ensure continued dominance and revenue growth.
- 14%+ Dividend Yields: 1 To Buy And 1 To Avoid1. High-yield dividend stocks can be powerful income machines but also risky; 2. We discuss two 14%+ yielding stocks, one to buy and one to avoid; 3. High Yield Investor offers exclusive access to subscriber-only portfolios.
January 6
- Snowflake: A Top AI Play For 20251. Snowflake is consolidating, down 7% since the last coverage; 2. Strong growth profile and AI investments make it a buy-the-drop opportunity; 3. AI workloads shifting to Cloud and Snowflake's AI investments are key catalysts in 2025.
- Broadcom Stock More Than Doubled In 2024, This Is Just The Beginning (Rating Upgrade)1. Broadcom's stock surged 107% in 2024, benefiting from the AI revolution; 2. The company's earnings report and analyst call surprised investors; 3. Nexus Research upgrades Broadcom stock to 'buy'.
- IonQ Has A Distinct (And Pretty Good) Place In Emerging Quantum Computing Field1. Quantum computing is facing a battle akin to the 1970-80s video cassette format wars; 2. IonQ addresses the challenges of quantum computing by trapping and energizing ions, which it calls nature's qubits; 3. IonQ is well on its way to becoming a financial giant in the quantum computing field.
- Seasonal Patterns Didn't Work In 2024, How Does That Affect 2025?1. Seasonal patterns in 2024 did not conform as expected, but will continue to be used as trading and hedging signposts in 2025. 2. Stock picking and disciplined investing are more important than seasonal strategies; use charts to find good trading or investment opportunities. 3. The Fed's rate cuts and US fiscal policies affected market behavior, leading to unexpected rallies and impacting traditional seasonal patterns. 4. Maintain a balanced approach with cash reserves, long positions, and specific shorts, preparing for both bullish and bearish market scenarios.
- Alibaba: A Good Opportunity In Call Options1. Despite recent underperformance, Alibaba's low valuation and strong cash position make it attractive; 2. China's 4.5% GDP growth and stimulus efforts support recovery; 3. Alibaba's stock chart shows signs of stabilization, and buying call options is attractive due to low implied volatility.
- Barings BDC: Portfolio Quality Continues To Weaken (Rating Downgrade)1. The author downgrades Barings BDC due to increased non-accruals, lower earnings, and weaker dividend coverage; 2. Despite a 10.7% dividend yield and a diversified portfolio, no significant dividend increases are expected; 3. The recent 5% price drop presents an entry point, but concerns remain about future performance due to NAV decline and higher non-accrual rates.
- American Airlines: Growth Ahead, But Debt Remains A Drag1. Despite positive industry outlook and new credit card deal, American Airlines remains a hold due to high debt, lower margins, and premium valuation. 2. Q3 2024 earnings showed revenue growth and reduced debt, but net income loss persists; Q4 2024 earnings guidance was recently increased by management. 3. A new exclusive credit card partnership with Citi aims to boost loyalty program earnings but faces regulatory challenges and rising credit delinquencies.
- Aquestive Therapeutics: Five Foci For 20251. Aquestive Therapeutics' Anaphylm is nearing FDA approval, potentially disrupting the U.S. anaphylaxis market; 2. AQST-108, a topical epinephrine gel for alopecia areata, shows promise; 3. Libervant, a diazepam buccal film for cluster seizures, has gained orphan drug exclusivity.