Masam Abbas

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  • Competition Dents the Outlook of These Stocks

    By Masam Abbas - March 8, 2013 | Tickers: AMD, ALTR, XLNX

    Intense competition in the semiconductor industry has led investors to value stocks in this space on very low multiples. Even international growth and solid balance sheets have not helped most of these stocks to regain their worth. The following stocks show both sides of the picture:

    Advanced Micro Devices (NYSE: AMD)    

    With the completion of the Global Foundries deconsolidation (Mar-2010) and the settlement with Intel (Nov-09) to resolve all outstanding more »

  • Why the Office Supply Industry Is so Hot

    By Masam Abbas - March 7, 2013 | Tickers: ACCO, ODP, OMX

    Certain industries have recently been closely watched by the Street as having great potential for consolidation. The merging of different players within an industry has been happening for different reasons. For example, potential sequestration has been responsible for consolidation in the defense industry. Similarly, the Street views saturation as the main reason for potential industry consolidation in the office supply retail industry. In this context, thr following stocks need special more »

  • Buy Staples for 25% Upside

    By Masam Abbas - March 5, 2013 | Tickers: ODP, OMX, SPLS

    Recently, I wrote an article on the merger of Office Depot (NYSE: ODP) and OfficeMax (NYSE: OMX). I discussed in detail how the merger’s premature announcement led to a massive rise in the respective stocks the day the announcement was put on Office Depot’s website. However, the stocks have been falling since the formal announcement of a merger given that many important details were not given to investors more »

  • 3 Stocks With a Negative Outlook

    By Masam Abbas - March 5, 2013 | Tickers: AZO, BKS, BBY

    The earnings season for specialty hardline retailers will kick off on Feb. 25. As already mentioned in one of my previous posts, the Street has a mixed outlook on this industry. Following is a brief discussion on three stocks with a pessimistic future outlook.

    AutoZone (NYSE: AZO)

    AutoZone is a specialty retailer of automotive replacement parts and accessories. The company offers an extensive product line for cars, sport utility vehicles more »

  • Have These Stocks Lost Their Luster?

    By Masam Abbas - March 1, 2013 | Tickers: BBBY, RH, TSCO

    Top and bottom-line expansion helped the entire retail sector rally last year. While the story of earnings growth is still intact with many stocks, there are some that have lost their luster either due to the fact that most of the earnings visibility has already been priced into the stock, or the company doesn’t have a definitive strategy to achieve its targets. Let’s have a look at the more »

  • The Key to Success for These 3 Semiconductor Stocks

    By Masam Abbas - February 26, 2013 | Tickers: ADI, LLTC, MU

    Writing on semiconductor companies is a tough job given the many complicated terms encountered that have to be described to general investors looking for high-yielding stocks. The following article briefly discusses the three best stocks in the semiconductor industry.

    Linear Technology Corp. (NASDAQ: LLTC)

    Linear Technology is considered to be a top pick for 2013. The stock is viewed as a core holding exhibiting both defensive (strong cash flow, dividend more »

  • Healthy Investments in the Health Space

    By Masam Abbas - February 26, 2013 | Tickers: GNC, SBH, ULTA

    The retail industry is huge and has several stories associated with it, given the different dynamics within each sub-sector. Health & Beauty sub-sector is one of those areas which receive a lot of attention from customers but hardly seem to attract regular investors. Let’s see what the following stocks have to say about this sub-sector.

    General Nutrition Centers (NYSE: GNC): GNC seems to be one of the best picks of more »

  • An Important Earnings Season Ahead for These Stocks

    By Masam Abbas - February 26, 2013 | Tickers: DKS, PETM, WSM

    The specialty hardline sector may not witness the same growth that it saw in 2012. Weakness in fundamentals might be one of the points, but the following note on three stocks tells us that there has been a considerable amount of uncertainty among the investor circles that has led to a weak outlook of this sector for 2013:

    Dick’s Sporting Goods (NYSE: DKS)

    Dick's Sporting Goods is a more »

  • 2 Semiconductor Stocks to Buy, 1 to Hold on Changing Macro Dynamics

    By Masam Abbas - February 26, 2013 | Tickers: ALTR, ADI, XLNX

    For most of last year, investors held out hope for a cyclical recovery in wireless and wireline CapEx with expectations of resurgence in China, LTE handset product cycles reinvigorating developed market capital spending and the insatiable growth in bandwidth consumption forcing network upgrades. Unfortunately, decelerating emerging market GDP and developed market carriers focus more on cash flow than subscriber acquisition acted to push out the investor-anticipated cyclical recovery driving relatively more »

  • 2 Stocks to Buy on Bottom-Line Expansion

    By Masam Abbas - February 25, 2013 | Tickers: EMC, NXPI, SNDK

    The semiconductor industry has recently been receiving favorable commentary given the improving macro environment. In one of my earlier posts, I discussed briefly how an investor can make money by playing one of the themes on this industry. This time around, I have picked up two such stocks that are expected to witness bottom-line expansion in the near future.

    NXP Semiconductors N.V. (NASDAQ: NXPI)

    The Street maintains a positive more »

  • Are These Higher Valuations Justified?

    By Masam Abbas - February 25, 2013 | Tickers: BKS, PETM, SHLD

    The retail industry had a terrific 2012. However, that has led to high expectations from the Street. Apart from this, certain headwinds have appeared that have put a big question on certain retailers’ ability to re-perform in 2013. The most common concerns have been the rising use of Internet/online shopping/e-commerce and high valuations. Let’s view this with the example of three retailers.

    Barnes & Noble (NYSE: BKS): After more »

  • Glass Giant Looking to iWatch for Breakthrough

    By Masam Abbas - February 23, 2013 | Tickers: AAPL, GLW, DOW

    Corning’s (NYSE: GLW) recent investor meeting disappointed most of its investors. Poor outlook for display segment, a persistent weakness in yen and instability in its Hemlock Division were some of the disappointing factors. However, bright prospects for Gorilla Glass and rumors like Apple’s (NASDAQ: AAPL) interest in using Corning’s bendable glass for its soon-to-be released iWatch has sent bullish signals to the market.

    The key takeaways from more »

  • Will These Iron Ore Stocks Rise After Their Earnings Releases?

    By Masam Abbas - February 22, 2013 | Tickers: BHP, FSUMF

    I have pulled out another set of two Australian miners and I’m sure readers will believing I have been obsessed with Australian companies. However, this time around, the two companies that I have picked out are heavy weight mining companies. Since iron ore prices saw a historic rally in post September period, I am assuming that American investors will definitely want to have a look at the earnings preview more »

  • Who Is Going to Win: E-commerce or Department Stores?

    By Masam Abbas - February 21, 2013 | Tickers: KSS, M, JWN

    The advent of the internet, which facilitated the rise of ecommerce, was one of the most significant moments in the evolution of the retail industry along with Sam Walton starting a little store in Rogers, Arkansas called “Wal-Mart Discount City” in 1962 and the emergence of “big box” retailing in the late 1970’s. Although the rise of the internet during the tech bubble forced many retailers to dip their more »

  • Is This Sell-off Justified?

    By Masam Abbas - February 21, 2013 | Tickers: RKUS

    Netgear’s (NASDAQ: NTGR) recent earnings release has disappointed its investors. Though, the company topped both earnings and revenue estimates, it has lowered its future guidance on the basis of a soft commercial market and weak pricing in its HDD segment. However, given the recent slashing of future guidance by virtually every peer of Netgear, it seems as if the weakness is not stock specific, and it might be a more »

  • Have You Missed the Opportunity to Make Money on the Housing Recovery?

    By Masam Abbas - February 21, 2013 | Tickers: HD, LOW, LL

    Do you blame yourself for not being smart enough to read the housing recovery in advance? Do you believe that you have missed a golden opportunity to make money since the stocks might have priced in the housing recovery? Well, in most cases, especially in building stocks, (or stocks that are directly related to first phase of home building), what you believe is absolutely right. However, there are certain sectors more »

  • Nuts and Bolts of Apple

    By Masam Abbas - February 21, 2013 | Tickers: AAPL, QLGC, SNX

    Recently, the tech conference was hosted by Goldman Sachs in which different companies presented their future directions. Among those companies, Apple (NASDAQ: AAPL) also presented its case. Normally, these sorts of conferences are good in two manners for investors:

    1)      Given that companies present their cases, it is a good ‘contact point’ for investors. Normally, investors only find such detailed discussion on the company on the earnings conference call.

    2 more »

  • Is BlackBerry's Z10 Better Than iPhone5 and Nexus 4?

    By Masam Abbas - February 20, 2013 | Tickers: AAPL, BBRY, GOOG, RCI

    Since its introduction on Jan. 30, Research In Motion’s (NASDAQ: BBRY) BlackBerry Z10 has been one of the hottest topics in the tech spheres. Where the bears have been absolutely skeptical about the new product’s pricing vs. features story, bulls have made up some strong arguments that suggest that the product might be a hit, especially given its superior features as compared to rival products.

    The initial impressions more »

  • Aluminum: Steel Industry Deja Vu?

    By Masam Abbas - February 20, 2013 | Tickers: AWC, CENX, NOR

    The aluminum industry has been going through a “prisoner’s dilemma” just like the US steel industry. Industry output has exceeded demand and therefore margins have been squeezed due to massive price cuts. Not a single player is willing to take the first step of reducing its production capacity. This has led to unfavorable returns for aluminum investors:

    Noranda Aluminum (NYSE: NOR)

    Noranda’s sales volumes are expected to improve more »

  • Have We Seen the Bottom in the Railroad Industry?

    By Masam Abbas - February 20, 2013 | Tickers: CSX, KSU, UNP

    The shale gas boom has severely hit the railroad sector. The declining natural gas prices have led to a sharp decline in the demand for coal, especially for the purposes of power generation. Given that coal forms the highest percentage of carloads of most of the railroads, the railroads have suffered a lot as a result.

    However, there are some factors that are suggesting that the worst times might be more »