Ashish Sharma

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  • Apple: What Next After iPhone 5?

    By Ashish Sharma - August 29, 2012 | Tickers: AMZN, AAPL, GOOG, NOK

    The iPhone 5 is getting much user hype as it is being dubbed as the biggest product launch in the history of consumer electronics. While this has provided ample upside to the stock, some investors are getting increasingly worried that iPhone 6 may not be able to attract as much consumer attention as iPhone 5 did. This has led investors to ask: “What next?” While this is a valid concern more »

  • RIM: Running on the Rumour Mill

    By Ashish Sharma - August 27, 2012 | Tickers: AAPL, BBRY, IBM

    In a recent news article from Bloomberg, IBM (NYSE: IBM) was identified as the latest potential suitor for Research in Motion (NASDAQ: BBRY). It was reported that IBM made an “informal approach” about acquiring RIM’s BlackBerry enterprise services assets for $1.5 billion to $2.5 billion. Earlier, Jefferies & Co.’s Peter Misek also indicated that Samsung may be in the process of licensing the new BB-10 OS or more »

  • Nu Skin: False Allegations, True Fundamentals

    By Ashish Sharma - August 27, 2012 | Tickers: AVP, BTH, NUS

    Share prices of Nu Skin (NYSE: NUS) have seen a 12% downfall in the last 20 days after short-seller Citron Research published a report alleging that the personal-care products maker was operating an illegal multi-level marketing scheme in China. However, the company’s business model in China is different from its global model and is in compliance with local regulations.

    In all of Nu Skin’s markets except for China more »

  • Strong International Trends and Increasing Popularity of Taco Bell Makes us Bullish on Yum

    By Ashish Sharma - August 27, 2012 | Tickers: CMG, JACK, YUM

    On 22nd August, YUM Brands (NYSE: YUM) held its annual Yum Restaurant International (YRI) analyst day in Dallas focusing on the strategy of international business segment that encompasses the world, excluding the U.S., China and India. Given that YRI has operations in over 120 countries and contributed 26% of the total revenue and over 30% of operating profits in 2011, we find strong trend in this segment encouraging more »

  • SalesForce: Expect increasing Force Going Forward

    By Ashish Sharma - August 27, 2012 | Tickers: GOOG, ORCL, CRM (NYSE: CRM) reported better than expected Q2 earnings as it posted revenues and EPS at $731.6m and $0.42 against consensus estimates of $728.3 million and $0.39 respectively. Billing growth at 30% was in line with Street estimates. If we adjust for a shift to annual payment terms, billings grew 34% YoY, despite a $14m QoQ FX headwind. Operating cash flow equaled $136.2 million more »

  • Trulia or Zillow: Which is the best investment?

    By Ashish Sharma - August 27, 2012 | Tickers: AOL, MOVE, YHOO, Z

    On August 17, Trulia filed an S-1 in preparation for an IPO of up to $75 million. The filing finally threw some light on the size of the company and its competitive position relative to Zillow (NASDAQ: Z). We believe that there is plenty of scope in the real estate business even for multiple players in the short term and over the long term, Zillow has a very good chance more »

  • 2 Coffee Stocks With Upside Potential

    By Ashish Sharma - August 27, 2012 | Tickers: DNKN, MCD, SBUX

    Starbucks (NASDAQ: SBUX) and Dunkin’ Brands (NASDAQ: DNKN) are the two leading coffee chains in the country. To accommodate the current trend for high quality coffee and the popularity of coffee shops in general, quick-service restaurant giant McDonald's (NYSE: MCD) also introduced McCafe, a café-style accompaniment to McDonald's restaurants in the style of Starbucks. McDonald’s McCafe provides an affordable alternative and can attract customers who view Starbucks more »

  • JOY: A Good Long Term Buy

    By Ashish Sharma - August 27, 2012 | Tickers: CAT, DE, JOY, TEX

    Joy Global (NYSE: JOY) is a leading mining equipment manufacturer and operates its business in two primary segments: Underground (~58 % of sales) and surface mining equipment (~ 42% of sales). Joy Global has made significant progress in its internal operational excellence programs, effectively allowing for capacity increases from stronger execution throughout existing factories. I believe that Joy’s forward earnings will outperform the low U.S. coal expectations reflected in the more »

  • Deere: Near Term Headwinds, Bullish In Long Term

    By Ashish Sharma - August 27, 2012 | Tickers: AGCO, CNH, DE

    On August 15th, Deere Company (NYSE: DE) reported its 3Q EPS of $1.98 on sales of $8.93 billion, falling short of consensus estimate of $2.31 and sales of $9.56 billion.  Earlier this month, its peer CNH Global (NYSE: CNH) also reported lower than expected results. However, CNH EPS miss was just $0.02 against the $0.33 miss reported by Deere. We believe that disappointing more »

  • Why Facebook is Still Not Undervalued?

    By Ashish Sharma - August 27, 2012 | Tickers: AAPL, FB, GOOG

    As Facebook (NASDAQ: FB) shares have lost more than ~50% since its IPO, more and more investors and analysts are getting bullish and calling it undervalued. Facebook shares recently received an upgrade from Capstone research’s analyst Rory Maher. We have been bearish on Facebook for quite some time now (See Facebook: The Best is Behind) and the stock has declined quite a bit in that time. We still don more »

  • Caterpillar: Strong Trends and Overhyped Concerns

    By Ashish Sharma - August 27, 2012 | Tickers: CAT, ETN, JOY

    Editor's Note: A previous edition of this article erroneously stated that Caterpillar announced an intention to idle its East Peoria manufacturing complex.

    On August 17th, Caterpillar (NYSE: CAT) reported its impressive July dealer statistics with machine sales up 14% YoY, accelerating from 11% growth in both June and May. By region, sales in North America improved slightly (up 25% YoY, up 24% in June), Asia Pacific accelerated sharply (up more »

  • Dollar Stores Crushing Big Lots

    By Ashish Sharma - August 27, 2012 | Tickers: BIG, DG, DLTR, FDO

    Big Lots’ (NYSE: BIG) 2Q results and updated FY12 guidance were far worse than expected and it is not surprising to see the shares trading down significantly after the earnings announcement. Reported 2Q12 EPS of $0.36 was below consensus estimates of $0.42 and also below the low end of guidance of $0.37-$0.42. Moreover, same store sales were weaker than expected and declined 1.9% as more »

  • Is Qihoo a threat for Baidu?

    By Ashish Sharma - August 27, 2012 | Tickers: BIDU, GOOG, MSFT, QIHU, SINA

    Qihoo 360 Technology (NYSE: QIHU) announced last week that it is replacing Google’s search service with its own search engine,, for its Website and browser. Investors seem to be concerned by this development as Baidu (NASDAQ: BIDU) saw a decline of ~10% following the announcement with a further ~6% following the downgrade from Deutsche Bank. We believe that investors are particularly worried about Qihoo’s large more »

  • Why there’s room for more upside in HAIN Stocks

    By Ashish Sharma - August 27, 2012 | Tickers: BNNY, BDBD, HAIN, WFM

    Shares of Hain Celestial Group (NASDAQ: HAIN) surged over 19%, after the company reported good Q4 results and provided a solid initial guidance outlook for FY13. The reported 4QF12 EPS of $0.47 was ahead of consensus estimates of $0.45. We were anticipating good Q4 results (See: HAIN: A Good Investment for a Health Life), given good trends at Annie’s (NYSE: BNNY) and Whole Foods (NASDAQ: WFM).  Annie more »

  • Why LinkedIn's Stock Performed When Others Didn’t? It All Boils Down to Fundamentals

    By Ashish Sharma - August 27, 2012 | Tickers: FB, LNKD, ZNGA

    We have long been saying that LinkedIn (NYSE: LNKD) is a fundamentally better company than its web 2.0 peers. In this post we will illustrate how LinkedIn performs better than its peer group and what makes it the best social network play. For this purpose, we will compare it with two of its web 2.0 peers which offered their IPOs around the same time as LinkedIn: Facebook (NASDAQ: FBmore »)

  • Why American Eagle is the Best Bet in Teen Space

    By Ashish Sharma - August 27, 2012 | Tickers: ANF, ARO, AEO, URBN

    Recently, American Eagle (NYSE: AEO) reported 2Q adjusted EPS of $0.21 which was in line with consensus and at the high end of management’s raised guidance. The most encouraging aspect was a 9% same store sales (SSS) growth. Management also indicated that back-to-school season is off to a good start and provided 3Q SSS guidance of mid-single digits with 4Q SSS in the low-single digits. We are encouraged more »

  • The Online Travel Market- Two Buys and One Sell

    By Ashish Sharma - August 27, 2012 | Tickers: CTRP, LONG, EXPE, OWW, PCLN

    We at have been working on the online travel market for quite some time  and have been watching closely the stock movements for many online travel stocks. As the Online travel market is slowly stabilizing, we feel that the agencies with maximum TAM will perform well while the companies which remain low on expansion will perform weakly on the stock markets. Here is our brief analysis of three more »

  • eBay: Payments and Marketplace have interesting growth prospects

    By Ashish Sharma - August 27, 2012 | Tickers: AMZN, DFS, EBAY, GOOG, SBUX

    Recently eBay’s (NASDAQ: EBAY) PayPal announced its partnership with Discover (NYSE: DFS) following a recent partnership announcement by Square and Starbucks (NASDAQ: SBUX). This partnership will bring PayPal to more than 7 million offline merchants across the US (Discover has penetrated 95% of the U.S. market.). eBay’s management noted that PayPal will begin the rollout to the 1,500 large merchants provided by Discover from 2Q13 with more »

  • A Good Buy in Medical Equipment Sector

    By Ashish Sharma - August 27, 2012 | Tickers: ABT, BSX, COV, MDT, SYK

    On Tuesday, Medtronic (NYSE: MDT) reported its 1Q13 results which were largely in line with expectations and organic sales growth (+3.5%) and EPS growth (+8%) both exceeded the peer group average. Although we wouldn’t say the bar was exceedingly high, but Medtronic’s growth seems impressive as compared to its peer group average of just 2.4% organic sales growth and 6% EPS growth in the quarter. Medtronic more »

  • Cummins: A Good Buy From Both Near and Long Term Perspective

    By Ashish Sharma - August 27, 2012 | Tickers: CAT, CMI, NAV, PCAR

    Cummins (NYSE: CMI) designs, manufactures, and distributes diesel engines, electric power generation systems, and engine-related products, such as filtration and emissions solutions. Late last Month, Cummins reported its 2Q12 results and the reported EPS of $2.40 was better than the consensus estimates ($2.27) by a fair margin. Despite a 4.5% YoY decline in sales, I am pleased with Cummins's gross margin of 27.2%. I believe more »

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