Mohammed Shaaban

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  • Can American Cars Earn the Quality Premium?

    By Mohammed Shaaban - July 20, 2013 | Tickers: F, GM, TM

    It has been four years since the U.S. government bailed out General Motors (NYSE: GM) and Chrysler. For years, these two companies, along with Ford (NYSE: F), had done everything wrong. They were building cars that consumers didn't want, that were totally unreliable, and that were inferior in quality. Thus, they suffered from diminishing market share and low returns on invested capital until reality finally hit them in more »

  • How To Profit From Rising Rates

    By Mohammed Shaaban - July 19, 2013 | Tickers: IAK, KBWI, KBWP, KIE

    Everyone in the financial markets suspects that rising interest rates are just a matter of time. The Federal Reserve's Quantitative Easing, or as Mr. Bernanke likes to call it Credit Easing, policy has for the past 4 years, for better or for worse, created an addictive environment of easy money and artificially low interest rates. Investors expect the Fed to taper its bond buying program starting later this fall more »

  • Quotes and Investing: Markets and Trucks

    By Mohammed Shaaban - July 17, 2013 | Tickers: ^DJI, RSP, ^GSPC, VXUS, VTI

    Over the Weekend, I had the pleasure of reading this piece 50 Fascinating Things I have Read Lately  by Fool Writer Morgan Housel. As the title implies, It features 50 interesting quotes from different publications. It was a real joy to read which added a lot of perspective. As I was reading I noticed that some of these quotes are relevant to the investing world -- even if they weren't more »

  • The Market For This Company is Set to Explode

    By Mohammed Shaaban - July 16, 2013 | Tickers: JNJ, MAKO, SYK, ZMH

    After World War Two, The United States of America witnessed the largest population increase in its history. Birth rates reached 25 per 1000 people, while death rates hovered at 9.5 per 1000, resulting in what came to be known as the baby boomer generation. Born between 1946 and 1964, the age range of this generation is currently between 49 years and 67. 

    76 million strong, second only to millennials more »

  • Has BlackBerry Re-Entered Its Death Spiral?

    By Mohammed Shaaban - July 15, 2013

    What a disaster! These were the exact words that crossed my mind as I first saw the results of BlackBerry's (NASDAQ: BBRY) Q1 FY 2014 earnings. I truly believed that BlackBerry would be in the black this quarter and that it would significantly beat consensus estimates. There was a lot of upbeat optimism among analysts over the past few weeks. RBC Capital predicted 3.5 million BB10 shipments and more »

  • The Bearish Case for This Beverage Company

    By Mohammed Shaaban - July 1, 2013 | Tickers: KO, PEP, SODA

    In part one we looked at the strong side of Sodastream (NASDAQ: SODA); In this post we will take a look at the empty half of the glass (no pun intended). After all, Sodastream has its own share of critics and disbelievers, is headquartered in a volatile part of the world, and has some pretty scary competition to go up against.

    Weaknesses

    Generic nature of many soda syrups

    Branding is more »
  • The Bullish Case for This Beverage Company

    By Mohammed Shaaban - July 1, 2013 | Tickers: KO, PEP, SODA

    Sodastream (NASDAQ: SODA) is an interesting company -- no doubt.

    This small company from Israel is challenging two titans The Coca-Cola Company (NYSE: KO) and Pepsico (NYSE: PEP). Coca Cola and Pepsi may be, in the words of Steve Jobs, only sugar water, but the companies behind them are so large and influential that they have become globally recognized icons of American culture and have been featured on the Fortune 500 more »

  • Is This Organic Apple Rotten?

    By Mohammed Shaaban - June 17, 2013 | Tickers: AAPL, FB, GOOG

    Earlier last month’s rumors were circulating that Facebook (NASDAQ: FB) is interested in acquiring the crowd-sourced digital mapping company Waze. The price tag for such a transaction was rumored to hover around the $1 Billion mark which would have been Facebook's second 10 figure acquisition within the space of a year, the first being the Instagram acquisition. However, late last month, news came out that the acquisition talks more »

  • This Company Is Making a Killing on the Patent Cliff

    By Mohammed Shaaban - May 22, 2013 | Tickers: CVS, RAD, WAG | Editor's Choice

    If you have been following the pharmaceutical industry lately, then you're probably no stranger to the "Patent Cliff" phenomenon that the industry is facing. The giant pharmaceutical companies are struggling to get new medications approved to replace the onslaught of blockbuster drugs that were approved in the 1990s, and are currently going off patent year after year.

    This following is a chart depicting the number of new medications approved more »

  • Why the Decline in RIM's Service Revenue Doesn't Matter

    By Mohammed Shaaban - January 14, 2013 | Tickers: AAPL, BBRY, GOOG, NOK

    At the end of December, Research In Motion (NASDAQ: BBRY) released its financial results for Q3 FY 2013; a dive by the company's share price shortly followed. It wasn't due to bad results; on the contrary, the results were simply amazing. The company beat estimates both on the top and bottom line. EPS came in at a 22 cent loss versus the 35 cent loss that the Street more »

  • The Smartphone Market Is Too Big for Apple and Samsung

    By Mohammed Shaaban - January 10, 2013 | Tickers: AAPL, BBRY, GOOG, NOK

    I have been hearing a lot lately about how the Smartphone market is a two horse race between Apple (NASDAQ: AAPL) and Samsung. The two aforementioned companies account for about 50% market share and the platforms they run on, iOS and Google's (NASDAQ: GOOG) Android, account for 90% of the smartphone market. There is an even more impressive aspect; These two giants make up 106% of the profits in more »

  • Massive Sales, Why Is This Game Maker Unloved?

    By Mohammed Shaaban - January 8, 2013 | Tickers: ATVI, EA, MSFT, NTDOY.PK, VIVHY.PK

    Call of Duty, developed by Activision Blizzard (NASDAQ: ATVI), has been one of the best-selling video game franchises of all time. Each and every release had shattered previous records. Call of Duty Black Ops 2, the latest installment in the series, so far has achieved more than a Billion dollars of revenue. So the question is, if Call of Duty has been so explosively successful why has Activision Blizzard's more »

  • Will Amazon Rain on Apple and Samsung's Party?

    By Mohammed Shaaban - December 11, 2012 | Tickers: AMZN, AAPL, BBRY, GOOG, NOK

    The Smartphone industry has helped produce the most valuable company in the world, and another that is equal to 19.9% of the south Korean Kospi Index. Apple (NASDAQ: AAPL) and Samsung are projected to sell massive numbers of smartphones in the hundreds of millions and generate obscene amounts of money in doing so, but the industry could witness a potential new entrant that can spoil the party for these more »

  • Flanking the Price War

    By Mohammed Shaaban - December 6, 2012 | Tickers: DAL, RYAAY, LUV, LCC

    It should be no surprise to anyone if it were said that the airline industry is a lousy business to be in. Airlines have been shedding money left and right. It seems that every couple of years one hears of another Airline filing for protection from creditors. American Airlines just filed for bankruptcy last year, Delta (NYSE: DAL) the world's largest airline by fleet size and number of passengers more »

  • The Many Earnings Per Share of RIM

    By Mohammed Shaaban - December 6, 2012 | Tickers: AAPL, BBRY, GOOG, NOK

    The once mighty Research in Motion (NASDAQ: BBRY) is set to release the eagerly awaited Black Berry 10 early next year. The Blackberry was once the coolest device on the block and jolted up RIM's shares in the early 2000s thousands of percentage points, but now has lost its relevance especially in the developed world. RIM's shareholders, CEO Thorsten Heins, and Blackberry fans are banking on the BB10 more »

  • The Rising Sun and The Rising Yen

    By Mohammed Shaaban - December 4, 2012 | Tickers: HMC, PCRFY, SNE, TM

    At the end of Micheal Crichton's Best Selling Novel, 'Rising Sun', the author wrote

    "Sooner or later, Americans must come to grips with the fact that Japan has become the leading industrial nation in the world. The Japanese have the longest lifespan. They have the highest employment, the highest literacy, the smallest gap between rich and poor. Their manufactured goods have the highest quality. They have the best food more »

  • In Defense of Wal-Mart

    By Mohammed Shaaban - December 4, 2012 | Tickers: COST, GS, WMT

    Yesterday, as I was browsing my Facebook news feed, I came across an interesting post by one of those anti corporate groups that have become a dime a dozen after the Occupy Wall Street movement 2 years ago.  It featured a picture of Costco's (NASDAQ: COST)  former CEO Jim Sinegal and read "Costco pays $17 per hour on average to its employees and refused to cave in to Wall more »

  • Bezos The Explorer

    By Mohammed Shaaban - December 2, 2012 | Tickers: AMZN, AAPL, BBY

    Recently Jeff Bezos, the founder of Amazon (NASDAQ: AMZN) was on the Charlie Rose Program to speak his mind on some of the issues that face Amazon and the tech world in general. 

    The Three Pillars

     According to Bezos Amazon is founded on three principles

    1. Customer Obsession
    2. Sacrificing Short Term Results for Long Term Performance
    3. A Willingness to Invent

     The Ruthless Tactician Perception

    Bezos is sometimes seen by many as more »

  • Best Buy Loves Showrooming

    By Mohammed Shaaban - November 19, 2012 | Tickers: AMZN, AAPL, BBY, COST, WMT

    Best Buy (NYSE: BBY) is  in danger of going the way of Borders and Circuit City, two big box retailers that went broke due to competition from online retailers, mainly Amazon (NASDAQ: AMZN). Investors' pessimism has been reflected in the performance of the company's stock in the last few years. The share price has just hit a new 52 week low, and overall the share price has sunk 65 more »

  • Gun Stocks Are Still a Buy

    By Mohammed Shaaban - November 14, 2012 | Tickers: SWHC, RGR, WMT

    Last Wednesday, after I woke up, I immediately switched on to CNN and heard the news that Barack Obama will remain in the oval office for four more years. Later that night I checked out how stocks were doing on my iPhone, and all I saw was a barrage of red!

    There were a few exceptions though, most notably Sturm, Ruger & Co (NYSE: RGR) and Smith and Wesson (NASDAQ: SWHCmore »)

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