Piyush Arora

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  • Its Time To Buy Agri Stocks

    By Piyush Arora - August 19, 2013 | Tickers: AGCO, CNH, DE

    I have read several agriculture related articles over the last week, and most of them recommend selling agriculture machinery stocks. Their basic premise is that corn prices have plummeted by nearly 33% over the last year, which should lead to a cash crunch, and eventually deter farmers from buying agricultural equipment. However, I would like to differ.

    It's worth noting that farming equipment industry relies on farming revenues, and more »

  • Micron Technology Has Plenty Of Upside To Offer

    By Piyush Arora - August 18, 2013 | Tickers: AAPL, MU, SSNLF

    According to a recent report by IC insights, the ASP (Average Selling Price) of DRAM modules could soar by 40% this year. The report suggests that the constrained supply of DRAM modules, and limited investments in production capacity expansions, are the main culprits. On the other hand, a couple of research reports suggest that NAND flash are in short supply, due to which, average prices of NAND contracts could increase more »

  • Pinnacle Foods Doesn't Look Attractive

    By Piyush Arora - August 15, 2013 | Tickers: KRFT, PF, UL

    More often than not, investing community considers IPOs as one-time opportunities to lock-in stellar returns. People often cite the exponential growth of successful IPOs, but seldom do they recall the failures of bust IPOs. I believe that Pinnacle Foods (NYSE: PF) is one such case, as it seems to be living the hype of a fresh IPO, with lofty valuations, but limited growth prospects.

    About the Acquisition

    Since its IPO more »

  • How to Prepare for the Next Natural Gas Boom

    By Piyush Arora - August 15, 2013 | Tickers: BHP, CBI, RDS-B

    When we talk about Liquified Natural Gas (LNG) exports, most investors tend to think that the U.S and East Africa are the prime beneficiaries of its impending boom. However, Australia is another budding natural gas hotspot, which aims to have 66 mtpa (million tonnes per annum) of natural gas liquefaction capacity by 2025. As a matter of fact, nearly $200 billion worth of LNG projects are currently being developed more »

  • It's Time to Buy These Defense Contractors

    By Piyush Arora - August 14, 2013 | Tickers: LMT, NOC, UTX

    To bolster economic growth, reduce malignant spending and prevent another fiscal cliff debacle, the 2013 U.S defense budget has been cut by $487 billion. And now, another $500 billion worth of cuts is being recommended. While this is bad news for many U.S defense contractors, the recent string of events has opened up new investment opportunities.

    Going beyond the budget!

    According to the auditor general’s report, the more »

  • This QSR Could Continue To Soar

    By Piyush Arora - August 13, 2013 | Tickers: CMG, PNRA, YUM

    I don’t think that the investing community needs an introduction to Chipotle (NYSE: CMG). From operating with just one outlet 1993, to having over 1,500 stores in 2013, its rise has been nothing short of meteoric. However, now that shares of Chipotle have risen by nearly 840% since its IPO in 2006, its trailing P/E of 43x seems pretty high. But even with its currently high valuations more »

  • Profiting From The Growing Consumer Disposable Income

    By Piyush Arora - August 13, 2013 | Tickers: MA, KORS, TIF

    Thanks to the Fed’s $85 billion worth of monthly liquidity injections, the unemployment rate in the U.S has slid to 7.6%. And with the improving job scenario, the U.S per capita disposable income has grown by nearly $1 trillion over the last year. Since the Fed doesn’t have any plans to unwind its quantitative easing anytime soon, the economic recovery will most likely continue. This more »

  • Capitalising on Surging New Home Sales

    By Piyush Arora - August 12, 2013 | Tickers: KBH, LEN, PHM

    Thanks to the Fed’s liquidity injections in a low interest rate environment, the housing market has been nurtured back to health. Investors are willing to invest in real estate again, which is why new home sales recently reached their 5-year highs. Now that the kogs are finally in motion, analysts estimate that the overall demand for new homes in the U.S to increase by 8-10% in FY14. So more »

  • It's Not Too Late to Buy This Regional Bank

    By Piyush Arora - August 12, 2013 | Tickers: BBT, FITB, RF

    More often than not, banking stocks are considered growth plays instead of value plays. This is reasonable, as global financial institutions generally deliver modest but steady returns. Over the last year, however, shares of Regions Financial (NYSE: RF) have risen by an impressive 50% and outperformed most of the popular global banks.

    Now that its shares have more than doubled over the last four years, the Street is doubting the more »

  • This Solar Stock Is Set to Soar

    By Piyush Arora - August 12, 2013 | Tickers: FSLR, JKS, LDK

    Thanks to the rising environmental concerns and depleting hydrocarbon resources, the demand for solar power is increasing around the globe. Despite the towering installation costs of large-scale Photovoltaic (PV) modules, a recent report claimed that the global PV module industry could fatten up to $138 billion by 2020. That is an impressive annual growth rate of 51%, which gives investors an opportunity to capture this tremendous growth potential. I believe more »

  • Are You Prepared for a Refinery Turnaround?

    By Piyush Arora - August 7, 2013 | Tickers: PSX, TSO, VLO

    Thanks to the rapid development of pipeline infrastructure, refineries now have better access to West Texas Intermediate (WTI) crude-oil feed. This, in turn, has caused a spike in WTI crude demand. The oil is also relatively easier to refine, which altogether has sent prices soaring. Over the last year, WTI spot prices have risen by nearly 16%, while Brent crude prices have remained flat.

    As a result, WTI-Brent spreads have more »

  • This Dollar Store Will Continue to Outperform

    By Piyush Arora - August 7, 2013 | Tickers: DG, DLTR, FDO

    History has shown that during austerity drives, companies that help in cutting costs are the ones that benefit the most. So it doesn’t take a rocket scientist to figure out why the shares of most discounted variety stores have outperformed over the last couple of years. And since the unemployment rate is still high, while the inflation rate is below 2%, these retail chains will most likely continue their more »

  • This Healthcare Stock Can Continue Its Rally

    By Piyush Arora - July 29, 2013 | Tickers: BAX, BDX, STJ

    Thanks to an expanding product portfolio, increasing healthcare spending, and explosive growth in the emerging markets, the healthcare industry has been growing at a stellar rate lately. Medical supplies and equipment providers are benefiting the most, as they serve the global healthcare industry. One of the most prominent beneficiaries has been Becton Dickinson (NYSE: BDX), which has recorded an appreciation of 45% over the last year. But, despite the recent more »

  • 3 Reasons Why AMD Could Turn Around

    By Piyush Arora - July 23, 2013 | Tickers: AMD, INTC, NVDA

    If we take a look at the charts, shares of AMD have lost around 90% of their value since 2006. Over the same period, its gross profits have nearly halved, while its operating cash flows have shrunk by 127%. With a debt/equity ratio of 493% and fiscal year 2012 losses mounting to $793 million, it is hard to find a single metric that proposes a buy rating for Advanced more »

  • This Company Is Set to Skyrocket

    By Piyush Arora - July 22, 2013 | Tickers: APC, E, NBL

    When it comes to the oil and gas sector, it's hard to find value plays. The task becomes daunting when we start scouting for large cap companies. While some companies are shifting to high margin projects, others are shedding assets to focus on their core competencies. But as a rare find, Anadarko Petroleum (NYSE: APC) appears to have all the ingredients of a perfect value play.

    Mozambique

    In 2010 more »

  • How to Profit From the Boom in the Civil Aviation Industry

    By Piyush Arora - July 17, 2013 | Tickers: BBD.B, EADSY.PK, BA

    With the recovery of major economies, airway load factors are booming and the aviation industry seems lucrative again. According to Boeing’s (NYSE: BA) forecasts, the global fleet of commercial airplanes could double in size by 2033. Its management estimates that global passenger traffic could increase by 5% annually till 2032, which should create a demand for $4.8 trillion worth of aircrafts.

    Even European Aeronautic Defence and Space Company more »

  • How to Trade This Gamer-Centric Company

    By Piyush Arora - July 16, 2013 | Tickers: ATVI, MSFT, SNE

    When it comes to technology, it's very hard to find undervalued companies. Tech related companies are mostly driven by market hype and speculation, which is why their valuations are often on the extremes. However, a classic exception to this theory is Activision Blizzard (NASDAQ: ATVI). Its shares have risen by nearly 35% over the last six months, yet they appear to be undervalued with a forward P/E of more »

  • How to Play the Tobacco Industry

    By Piyush Arora - July 16, 2013 | Tickers: MO, PM, RAI

    I admire tobacco companies. Despite nasty looking warnings on tobacco products, consumers find a reason to consume these items. And despite their minimal marketing campaigns, these companies find loyal customers to retain their growth momentum. This ensures a stable top line and the rising population presents steady growth potential. But when it comes to hand picking tobacco stocks, which companies should make it to your list?

    Why not Philip Morris more »

  • Profiting From Rising Coal Demand

    By Piyush Arora - July 15, 2013 | Tickers: ACI, NSC, BTU

    With the abundant supply and cheaply priced natural gas in the U.S, the clean fuel has successfully replaced coal in many industries. While coal prices have declined by nearly 25% over the last year, the rising domestic gas demand and increasing liquefied natural gas (LNG) exports have pushed up gas prices by nearly 30%. As a result, electric utilities now prefer coal over natural gas due to its low more »

  • Profiting From the Booming Smart Devices Industry

    By Piyush Arora - July 14, 2013 | Tickers: GLW, SSNLF, OLED

    According to recent reports, the smartphone industry grew by 45.1% in 2012 and is expected to grow by 44% in 2013. And thanks to the growing need for mobile devices, the tablet industry grew by 78.4% in 2012 and is expected to grow by 58.7% in 2013. Furthermore, tablet sales are estimated to surpass notebook sales by 2016. These bold projections point towards a booming industry of more »

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