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Archive for the ‘Quick Pitch’ Category

Microsoft Corp. (MSFT), an undervalued stock with strong business predictability (closing price $25.25). Part 2

In Quick Pitch on August 29, 2011 at 12:14 am

Continued from Part 1 Microsoft Corp. (MSFT), an undervalued stock with strong business predictability (closing price $25.25). Part 1

Forward looking earnings guidance provided by management for FY12

i) Its largest revenue and operating profit segment, Microsoft Business Division transactional revenue likely lag overall PC market. However, multi-year licensing revenue should grow low double digits.

ii) Its second largest revenue and operating profit segment, Windows and Windows Live transactional revenue in emerging market growth significantly outpacing developed market growth. Business PC growth to outpace consumer PC growth, as business refresh continues. We opined that many of the business and personal usage of Windows XP will likely to fully convert to Windows 7 due to the old cycle attrition.

iii) Its third largest revenue and operating profit segment, Server and Tools transactional revenue to track with the hardware market. Multiyear licensing revenue and enterprise services revenue to grow low double digits.

Read more here Microsoft Corp. (MSFT), an undervalued stock with strong business predictability (closing price $25.25). Part 2

Microsoft Corp. (MSFT), an undervalued stock with strong business predictability (closing price $25.25). Part 1

In Quick Pitch on August 29, 2011 at 12:10 am

Preamble: Technical analysis

Microsoft (MSFT) certainly looks like a dividend play, with its range bound prices at the lows of $15 in March 2009 to its climax of $37+ in May 2007, ex dividend yield and share buybacks, and withstood the slings and arrows of outrageous fortune (2000: Dot-com boom and bust; 2001: 9/11 attacks on World Trade Center and 2007: Subprime mortgage crisis).

These are the top 11 mutual/hedge fund gurus which have more than 12 million shares outstanding as at June 30th filing, bearing in mind they are not reflective of a fund’s entire portfolio. Hedge funds may have hedged their positions with derivatives/short other capital structure as an arbitrage play. A cursory glance at Gurus’ latest trades revealed that investors currently have the opportunity to buy the stock at a slightly higher price ($25.25 at the time of this writing) than smart money ie Einhorn, Klarman and Yacktman’s average trade price of $25.04.

Read more here Microsoft Corp. (MSFT), an undervalued stock with strong business predictability (closing price $25.25). Part 1

The APPLE of Thy Eye?

In Quick Pitch on August 26, 2011 at 11:33 pm

Apple certainly has a nice run from the consolidation low of $100 in late 2009, which more than quadrupled its high in July 2011.

These are the hedge fund gurus which have more than 1 million shares outstanding. But with the departure of Steve Jobs’ leadership, will it still be the Apple of the gurus’ eye? Its large CSO of 927 million, allows traders to trade in and out with its broad liquidity which hedge funds are in favor of.

Read more here The APPLE of Thy Eye?

Investment Quick Pitch – Citigroup, a Good Buy Near Its 52-Week Low

In Quick Pitch on August 26, 2011 at 11:30 pm

Citigroup Inc. (C), a global financial services company, provides consumers, corporations, governments and institutions with a range of financial products and services. The company operates through two segments, Citicorp and Citi Holdings. The Citicorp segment operates as a global bank for businesses and consumers with two primary businesses, Regional Consumer Banking and Institutional Clients Group. The Citi Holdings segment operates Brokerage and Asset Management, Local Consumer Lending, and Special Asset Pool businesses. (Source: Yahoo finance)

Read more here Investment Quick Pitch – Citigroup, a Good Buy Near Its 52-Week Low

Bank of America (BAC) with a compelling entry point for long term investors

In Quick Pitch on July 31, 2011 at 11:44 am

Question to the technicians: Take a look at the 10 year chart of Bank of America (BAC). Would you short at this bargain price of $9.71 (as at July 29th 2011)? The price is at its 52-week low, it is short term oversold and the price being hammered in its long term downtrend. No? Great, now we’ve established that there’s substantial downside risk in shorting, let’s turn to the fundamentals.

Guru Trades

Bank of America is an unloved stock at this juncture, judging from the recent downtrend. However, it is a favorite among the smart money. Fairholme Fund, Bruce Berkowitz, David Tepper, John Paulson each owns about/more than 5% of the shares outstanding. Along with other institutional funds, this translates to 60% of institutional holdings out of the common stock outstanding/float of 10Bil shares.

Read more here Bank of America (BAC) with a compelling entry point for long term investors