Timothy Green

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  • Is This Premium Burger Chain Worth The Price?

    By Timothy Green - August 19, 2013 | Tickers: PNRA, RRGB, YUM

    The burger is a mainstay of the American cuisine, and competition between the companies selling them is fierce. I classify burger restaurants in three categories: cheap fast food, mid-range, and premium. The cheap fast food category is comprised of companies like McDonalds and Wendy's, with dollar menus and lower-quality ingredients. The mid-range category is a step up from fast food, with companies like privately-held Five Guys able to charge more »

  • This Big Tech Disappointment Has Created an Opportunity

    By Timothy Green - August 19, 2013 | Tickers: CSCO, JNPR, PANW

    Networking giant Cisco (NASDAQ: CSCO) announced earnings which beat analyst estimates on Aug. 14, but the market wasn't satisfied. The stock fell after-hours, and after weak guidance was given on the conference call, shares plummeted further. The next day, the stock opened down 7.5%, giving long-term investors an opportunity to buy the stock of a great company at a discount. Even though the market reacted poorly, there were more »

  • The Big Business Of Breakfast

    By Timothy Green - August 16, 2013 | Tickers: DNKN, MCD, YUM

    Americans spend an estimated $42 billion on breakfast at restaurants each year, makign this a highly lucrative and competitive market. Fast food behemoth McDonald's (NYSE: MCD) has long held an enviable position in this market, with iconic items such as the Egg McMuffin remaining extremely popular for over 40 years. Breaking into the breakfast market in a significant way can be difficult, and many companies have tried and failed more »

  • There Is No Such Thing as a Crash-Proof Stock

    By Timothy Green - August 16, 2013 | Tickers: AMGN, AAPL, CVX, XOM

    Over on MarketWatch an article entitled "Three crash-proof blue-chip stocks" was published on Monday, in which the author put forth three big-name stocks that he believed could weather a pullback better than the rest. The three stocks put forth were Exxon Mobil (NYSE: XOM), Amgen (NASDAQ: AMGN), and, believe it or not, Apple (NASDAQ: AAPL).

    But there is no such thing as a crash-proof stock, and for a long-term investor more »

  • The Mobile Gaming Revolution

    By Timothy Green - August 15, 2013 | Tickers: NVDA, QCOM

    In the world of mobile processors NVIDIA (NASDAQ: NVDA) has struggled to make inroads in a market dominated by Qualcomm (NASDAQ: QCOM). The Tegra 3 was released at the end of 2011 and saw some success, most notably finding its way into Surface RT and the console of the Tesla Model S. The Tegra 4 was delayed to push the Tegra 4i, a version with a built-in LTE modem, and more »

  • Great Products, Terrible Investments

    By Timothy Green - August 14, 2013 | Tickers: CREE, P, TSLA

    One trap which investors sometimes fall into is buying the stock of a company because they like the company's product. A good product and a good investment are two very different things, and ignoring the bias created by being a customer can be difficult. Stocks like this tend to become dramatically overpriced, with loyalty and blind optimism driving up the stock price. Almost always these stock eventually come back more »

  • 1 Stock to Profit From the Booming Gaming Market

    By Timothy Green - August 12, 2013 | Tickers: AMD, MSFT, NVDA | Editor's Choice

    With shares of NVIDIA (NASDAQ: NVDA) falling after its Q2 earnings release, it seems that investors are focusing on what matters least. Total revenue and profit fell year-over-year, dragged down by a huge decline in the mobile Tegra business, but this was expected and doesn't really matter. The core GPU business is growing, and right now, NVIDIA offers an investment opportunity with little downside and an ample margin of more »

  • Is There Any Value Left In This Semiconductor Equipment Stock?

    By Timothy Green - August 12, 2013 | Tickers: AMAT, LRCX

    One group of stocks which have done well so far this year have been the semiconductor equipment stocks, led by market leader Applied Materials (NASDAQ: AMAT). In a recent report Goldman Sachs has included Applied in a list of the 40 most undervalued stocks relative to the firm's price target, but after a significant rise in the stock price year-to-date it seems questionable whether the stock is still a more »

  • Does a PayPal Spinoff Make Sense?

    By Timothy Green - August 12, 2013 | Tickers: EBAY, PFE, ZTS

    The ideal situation for a spinoff is when you have a small, fast growing division lodged within a large, slower-growing company. The new, fast-growing company commands a high P/E ratio while the large company is mostly unaffected by the loss of the division. This creates value for shareholders because the sum of the market values of the two companies is now greater than the original company.

    But sometimes, the more »

  • Is This Software Company Really Undervalued?

    By Timothy Green - August 10, 2013 | Tickers: ADBE, ADSK, INTU

    Recently David Kostin, an analyst at Goldman Sachs, released a list of 40 stocks with the most upside relative to Goldman's analyst price targets. Analysts are not known for being correct, both in general and with regard to price targets, so the fact that these stocks are well below their respective price targets means little. But are they actually undervalued? I'll look at number two on the list more »

  • Is There Any Value Left in Baidu?

    By Timothy Green - August 8, 2013 | Tickers: BIDU, GOOG, QIHU

    In April I wrote an article about Chinese search giant Baidu (NASDAQ: BIDU) in which I claimed that after a steep decline the stock had entered value territory and was a real bargain. At the time the stock traded for about $85 per share. Since that writing Baidu has surged to around $135 per share, up nearly 60% in just a few short months.

    BIDU data by YCharts

    Baidu fell more »

  • Can Whole Foods Maintain Its Margins?

    By Timothy Green - August 6, 2013 | Tickers: SFM, KR, WFM

    In the organic and natural grocery business Whole Foods (NASDAQ: WFM) is the largest player in its market, with over 350 stores and annual revenue of $12 billion. Whole Foods also has extremely high margins compared to traditional grocers, achieved by charging higher prices for its high-quality products. But are these margins sustainable? As the company grows to 1,000 stores, which the company has set as its target, will more »

  • Are These Book Sellers In Trouble?

    By Timothy Green - August 6, 2013 | Tickers: AMZN, BKS, BAMM

    The bookselling industry was revolutionized by Amazon (NASDAQ: AMZN), leaving many independent book stores and even national chains struggling to survive. Borders went under in 2011, leaving Barnes & Noble (NYSE: BKS) as the only nationwide chain left and Books-A-Million (NASDAQ: BAMM) as a distant second.

    I recently wrote an article that claimed that Barnes & Noble was actually fairly profitable if you back out its failing hardware business, while Books-A-Million likely more »

  • Uncertainty Surrounds This Game Company

    By Timothy Green - August 5, 2013 | Tickers: ATVI, EA, TTWO

    This year is an exciting one for the world of video games. With Sony and Microsoft set to launch new consoles this holiday season, the Playstation 4 and the Xbox One respectively, there should be a much needed jolt provided to the gaming industry. One of the biggest game companies, Activision Blizzard (NASDAQ: ATVI), is in prime position to benefit from this new generation of gaming. But the company is more »

  • Temporary Issues For This Energy Stock

    By Timothy Green - August 5, 2013 | Tickers: HAL, NOV, SLB

    For two quarters in a row National Oilwell Varco (NYSE: NOV) has reported a decline in earnings coupled with an increase in revenue. In the second quarter the company posted 18% year-over-year revenue growth and a record backlog of orders, but adjusted EPS declined to $1.33 from $1.46 one year ago. Is this a short-term problem, or should long-term investors be worried?

    A flurry of acquisitions

    National Oilwell more »

  • Take Advantage of This Overreaction

    By Timothy Green - August 1, 2013 | Tickers: CROX, DECK, NKE

    When shoe maker Crocs (NASDAQ: CROX) reported second quarter earnings last week the stock got destroyed, falling 20% on the following day. While revenue grew substantially earnings came in well below analyst estimates, which the company blamed on a colder-than-normal spring season. The stock now trades for around $13.50 per share after approaching $18 earlier this year, and Barron's believes that there is significant upside going forward. I more »

  • An Earnings Beat With Long-Term Potential

    By Timothy Green - August 1, 2013 | Tickers: MGI, WU, XOOM

    When money-transfer giant Western Union (NYSE: WU) reported its second-quarter earnings on Tuesday, the stock soared by as much as 9.5% as the results came in far better than analysts expected. The company cut prices on many of its services to better compete with rival MoneyGram (NASDAQ: MGI) and upstart Xoom (NASDAQ: XOOM), and while a decline in profits was expected, increased volume caused that decline to be smaller more »

  • A Big Tech Opportunity

    By Timothy Green - July 31, 2013 | Tickers: CSCO, IBM, MSFT

    When Microsoft (NASDAQ: MSFT) reported earnings last week the market did not like what it saw. The company lost about $30 billion in market value in one fell swoop as the shares dropped by $4 in value. I've written about why I think that Microsoft's quarter was a lot better than people seem to think and how the massive drop in the stock price was an overreaction, but more »

  • Avoid IPO Madness

    By Timothy Green - July 23, 2013 | Tickers: MANU, NDLS, SSTK

    The life cycle of the typical IPO seems to be this: the stock shoots up on the first day to outrageous levels, stays there for a time as it's propped up by nothing more than enthusiasm and hope, and then eventually crashes when people realize that the business model isn't as bulletproof as they had originally assumed.

    The second stage of this life cycle is a dangerous one more »

  • Getting Real About Chipotle

    By Timothy Green - July 23, 2013 | Tickers: CMG, PNRA, YUM

    The value of a company, and therefore the value of its stock, is really a function of what the company will look like in the future instead of what the company looks like today. The expectation of strong growth into the future drives stock prices higher, but it's important to understand the risk/reward balance when investing in a fast growing company. Burrito king Chipotle Mexican Grill (NYSE: CMGmore »)

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