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  • Wall Street is Completely Clueless about the Value of E*Trade

    By SumZero Research - March 2, 2012 | Tickers: SCHW, ETFC, OXPS.DL, AMTD

    (The following is an highly condensed version of a full write-up submitted to the SumZero community)

    Source: Victor Bonilla
    Firm: Formerly at Calypso Capital Management
    Education: Wharton (MBA), UPenn (Undergrad)
    Location: New York, NY

    Recommendation: Long
    Timeframe: 1-2 Years
    Price Target: $12.81

    Quick Thesis on E*Trade (NASDAQ: ETFC)

    I am recommending shares of E*Trade Financial for investment for four principle reasons:

    1. Price versus Value. The equity more »

  • salesforce.com: Loved by Wall Street, Shorted by Hedge Funds

    By SumZero Research - March 1, 2012 | Tickers: AMZN, GOOG, MSFT, ORCL, CRM, SAP, VMW

    salesforce.com (NYSE: CRM) — $143.70

    (The following information comes directly from SumZero’s community of buyside analysts.)

    Source: Hedge Fund. London, UK

    Recommendation: Short

    Wall Street consensus on salesforce.com: Buy
    11 Strong Buy, 20 Buy, 6 Hold, 0 Underperform, 4 Sell

    Wall Street Price Target
    Mean: $161.58
    Median: $165.50

    SumZero Contrary View
    salesforce.com generates ~80% if its sales from the increasingly commoditized and penetrated sales more »

  • Why NVIDIA Stock Needs to Drop By About 30%

    By SumZero Research - February 23, 2012 | Tickers: AMD, BRCM, INTC, NVDA, QCOM, TXN

    Quick Pitch: NVIDIA (Short)

    NVIDIA — (NASDAQ: NVDA)
    Recommendation: Short
    Recent Price: $15.90
    Target Price: $11.00

    Timeline: 6 Months to 1 Year

    Source: Hedge Fund.
    Location: San Francisco, CA.

    Overview of the Short
    NVIDIA has in the last 2-3 years branched out beyond its core graphic processing (GPU) business into producing processors for mobile devices and tablets (primarily Android). Given the projected growth and growing ubiquity of smartphones and more »

  • Hedge Funds Roundly Bullish on Aeropostale Stock

    By SumZero Research - February 23, 2012 | Tickers: ANF

    Aeropostale (NYSE: ARO)

    Recent Price: $17.50

    SumZero Analysts Following Aeropostale: 28
    SumZero Investment Reports on Aeropostale: 15

    SumZero Community Sentiment:
    82% Long, 12% Hold, 6% Short

    SumZero Consensus Price Target:
    Mean: $22.63 per share
    Median: $25.00 per share

    Quick Thesis:
    “At a current price of $17 per share, the stock remains at an attractive entry point from a valuation perspective. The herd mentality of sell-side analysts continue more »

  • Why Zillow Stock Needs a LinkedIn/Netflix/Sirius Multiple

    By SumZero Research - February 22, 2012 | Tickers: ACOM, LNKD, Z

    Quick Pitch: Zillow (NASDAQ: Z) — Long

    (This is an edited and highly abbreviated quick pitch pulled from the SumZero community.)

    Analyst: Rohit Dewan
    Firm: Olm Capital Management
    Industry: Hedge Fund
    Location: New York, NY

    Recent Price: $29.23
    Target Price: $40.00

    Zillow belongs in a highly diverse category of high-growth internet and media companies. Many of these companies have business models based on either subscriptions or advertising or a more »

  • Spirit Airlines: The One Airline Hedge Funds Can Fly With

    By SumZero Research - February 16, 2012 | Tickers: ALGT, DAL, JBLU, LUV, SAVE

    (This write-up is an edited and greatly-abbreviated pitch from the SumZero community.)

    Spirit Airlines (NASDAQ: SAVE)
    Recommended Action: LONG
    Current Price: $18.22 Target Price: $30.00
    Source: Hedge Fund. Minneapolis, MN.

    Quick Pitch:

    Spirit Airlines is an ultra low cost airline with the lowest costs and best margins in the U.S. airline industry. The company provides extremely low priced flights to a combination of vacation destinations and secondary more »

  • Rising Hedge Fund Star on Overpriced Restuarants and Facebook Stock

    By SumZero Research - February 16, 2012 | Tickers: BJRI, SAM, BWLD, MCD, MNST

    (This interview is an edited and greatly abbreviated article from the SumZero community.)

    Member: Ben Axler
    Title: Managing Partner/Founder
    Firm: Spruce Point Capital Management
    Focus: Cash-rich value equities and special-situations
    Location: New York, NY
    Undergrad: Rutgers College
    Post Grad: Yale University
    Recent Ideas: STVI.OB (long), DLGC (short), CIS (short)

    Brief Bio:

    Prior to founding Spruce Point Capital Management, Mr. Axler spent eight years as an investment banker with more »

  • Hedge Funds Getting Behind Yahoo!

    By SumZero Research - February 4, 2012 | Tickers: YHOO

    Yahoo! (NASDAQ: YHOO) -- $15.75
    (The following information comes directly from SumZero’s community of buyside analysts.)
    SumZero Analysts Following Yahoo!: 37
    SumZero Investment Reports on Yahoo!: 4

    SumZero Community Sentiment:
    85% Long, 10% Short, 5% Hold

    SumZero Consensus Price Target:
    Mean: $19.50 per share
    Median: $21.00 per share

    Quick Overview:
    The market is underestimating the value of the Asian asset portfolio and is overly discounting the rate more »

  • Ancestry.com Is a Solid Short for Hedge Funds

    By SumZero Research - January 31, 2012 | Tickers: ACOM

    Ancestry.com (NASDAQ: ACOM)

    (This write-up is an edited and greatly-abbreviated pitch from the SumZero community.)

    Recommended Action: Short

    Current Price: $30.30 Target Price: $13.00 
    Source: Hedge Fund. Washington, DC. 

    Quick Pitch:

    Over the past few quarters, sell-side analysts have been predicting 'significant growth’ for Ancestry.com and estimate 50% subscriber base growth for the website by the year-end 2013. Analysts claim that Ancestry.com’s social network more »

  • PetSmart Is Getting Targeted by Hedge Funds

    By SumZero Research - January 31, 2012 | Tickers: AMZN, PETM

    PetSmart (NASDAQ: PETM) -- $53.15


    (This write-up is an edited and greatly abbreviated pitch from the SumZero community.)

    SumZero Analysts Following PetSmart: 12 
    SumZero Investment Reports on PetSmart: 3 

    SumZero Community Sentiment: 
    66% Short, 33% Long, 0% Hold 

    SumZero Consensus Price Target: 
    Mean: $39.50 per share 
    Median: $39.50 per share 

    Quick Business Description: 
    PetSmart is the largest specialty retailer of pet food, supplies and services in North America more »

  • Hedge Funds Eyeballing Shares of GM

    By SumZero Research - January 25, 2012 | Tickers: F, GM

    General Motors (NYSE: GM)

    (This write-up is an edited and greatly-abbreviated pitch from the SumZero community.)

    Recommended Action: Long
    Current Price: $24.38 Target Price: $33.00
    Source: Hedge Fund. New York, NY

    Quick Thesis

    An investment in GM offers upside to the cyclical recovery in the North American markets, as well as the best possible exposure to the secular growth in the BRIC countries, particularly China, but also Brazil more »

  • Hedge Funds Are Targeting Dialogic

    By SumZero Research - January 25, 2012 | Tickers: DLGC

    Dialogic (NASDAQ: DLGC)

    (This write-up is an edited and greatly-abbreviated pitch pulled from the SumZero community.)

    Recommended Action: Short
    Current Price: $0.94 Target Price: $0.00
    Source: Hedge Fund. New York, NY

    Brief Description

    Dialogic Inc. is a provider of communications platforms and technology that enable developers and service providers to build and deploy applications without concern for the complexities of the communication medium or network.

    Summary

    The company more »

  • How Ralcorp Can Unlock Value

    By SumZero Research - January 24, 2012 | Tickers: CAG, RAH, THS

    Ralcorp Holdings (NYSE: RAH)

    (This write-up is an edited and abbreviated pitch pulled from the SumZero community. It represents a fraction of the full report.)

    Recommended Action: Long
    Current Price: $86.00 Target Price: $105.00
    Source: Hedge Fund. New York, NY

    Brief Description

    Ralcorp is the largest publicly traded private label food manufacturer in the US, competing in the cereal, cookie/crackers, snacks/sauces/spreads, refrigerated/frozen bakery and more »

  • Going Short the USO

    By SumZero Research - January 24, 2012 | Tickers: USO

    United States Oil (NYSEMKT: USO)

    (The following write-up is an edited and abbreviated pitch pulled from the SumZero community.)

    Recommended Action: Short
    Current Price: $38.00 Target Price: $30.00
    Source: Hedge Fund. New York, NY

    Quick Background

    United States Oil Fund is an ETF that is supposed to track the price of a barrel of oil in the USA (WTI). In theory, it is an interesting financial product that more »

  • Hedge Funds Dig into Lockheed Martin

    By SumZero Research - January 23, 2012 | Tickers: GD, LMT, NOC, BA

    Lockheed Martin (NYSE: LMT)

    (The following write-up is an edited and abbreviated pitch pulled from the SumZero community.)

    Recommended Action: Long
    Current Price: $83.50 Target Price: $100.00
    Source: Hedge Fund. New York, NY.

     

    The Opportunity

    Lockheed Martin offers the opportunity to invest in an oligopoly business that:

    • Derives 50%+ of operating income from long-term, recurring programs;
    • Generates a 9% FCF yield, which is all spent on dividends and more »

  • Hedge Funds Dig into Royal Bank of Canada

    By SumZero Research - January 23, 2012 | Tickers: RY

    Royal Bank of Canada (NYSE: RY)

    (The following write-up is an abbreviated pitch pulled from the SumZero community.)

    Recommended Action: Short
    Current Price: $52.50 Target Price: $36.00
    Source: Hedge Fund. New York, NY.

    Thesis:

    A short position in Royal Bank of Canada common equity has little downside risk, offers modest upside, and should be effective as a portfolio hedge.

    Royal Bank of Canada is one of the better more »

  • Hedge Funds Dig into Coinstar

    By SumZero Research - January 23, 2012 | Tickers: CSTR

    Coinstar (NASDAQ: CSTR) -- $47.40

    SumZero Analysts Following Coinstar: 38
    SumZero Investment Reports on Coinstar: 5

    SumZero Community Sentiment:
    68% Long, 21% Short, 11% Hold

    SumZero Consensus Price Target:
    Mean: $58.00 per share
    Median: $65.00 per share

    Quick Business Description:
    Coinstar dominates the coin counting machine market (the market for which CSTR is best known), and the company has a 50% investment in a company (Redbox) which is more »

  • Digging Into Green Mountain Coffee Roasters, GM and Dunkin' Brands

    By SumZero Research - January 18, 2012 | Tickers: DNKN, GM, GMCR, SBUX

    This is your SumZero (www.sumzero.com) Weekly Market Dispatch for Jan. 18, 2012.

    Green Mountain Coffee Roasters (NASDAQ: GMCR)
    SumZero Analysts Following Green Mountain: 25
    SumZero Investment Reports on Green Mountain: 6

    SumZero Community Sentiment:
    54% Short, 38% Long, 8% Hold

    SumZero Consensus Price Target:
    Mean: $40.00 per share
    Median: $40.00 per share

    Key Comparables:
    Starbucks (NASDAQ: SBUX) -- Consensus: 100% Long, EV/EBITDA: 16.0x
    Peet’s more »