Andrés Cardenal

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  • A Winner in the Mobile Revolution

    By Andrés Cardenal - August 19, 2013 | Tickers: AAPL, QCOM, SSNLF

    The mobile computing revolution is here to stay; and this trend will generate plenty of opportunities for growth going forward. While industry giants like Apple (NASDAQ: AAPL) and Samsung (NASDAQOTH: SSNLF) fight each other over dominance in devices, Qualcomm (NASDAQ: QCOM) is in a position of remarkable strength to benefit from the mobile boom as a leading supplier to the major industry players.

    In the right places
    Qualcomm is a more »

  • Don’t Make This Expensive Mistake

    By Andrés Cardenal - August 19, 2013 | Tickers: NFLX, TSLA | Editor's Choice

    Valuation can be very important when it comes to making investing decisions, be it on the long side or the short side. However, valuation ratios should always be analyzed in the context of the company´s overall business strategy and growth potential. Shorting disruptive growth companies only because they seem overvalued can be a very expensive mistake.

    The value of uniqueness
    Tesla Motors (NASDAQ: TSLA) has been a textbook example more »

  • This Growth Story Has More Upside Potential

    By Andrés Cardenal - August 16, 2013 | Tickers: EXPE, GOOG, OWW, PCLN

    Priceline.com (NASDAQ: PCLN) has been firing on all cylinders lately, the company has many good things going on for investors, and the stock is up more than 50% year to date. After such an explosive rise, investors may understandably feel concerned about the company´s valuation levels. However, make no mistake, Priceline has plenty of gas left in the tank.

    The industry
    Pricing has become a critical aspect in more »

  • A Surprising Reason Why Warren Buffett Must Be Happy

    By Andrés Cardenal - August 15, 2013 | Tickers: BRK-B, BRK-A, IBM

    Warren Buffett made a big and unexpected move in 2011, when he decided to take a big position in IBM (NYSE: IBM) and make the IT company one of Berkshire Hathaway´s (NYSE: BRK-A) (NYSE: BRK-B) “big four” holdings alongside names like Coca-Cola, Wells Fargo and American Express.

    The stock is basically flat over the last year, seriously lagging the Dow Jones Index, which is up by nearly 20% in more »

  • Three High-Quality Companies With Attractive Valuations

    By Andrés Cardenal - August 15, 2013 | Tickers: AIG, AAPL, F

    Major market indexes are trading near historical highs, and some stocks are starting to look a bit pricey, but that doesn´t mean that each and every company in the market is overvalued. On the contrary, there are plenty of opportunities around if you know where to look. These high-quality names offer compelling valuations and plenty of upside potential.

    Apple

    Investors in Apple (NASDAQ: AAPL) have suffered a serious setback more »

  • This Company Has Extraordinary Growth Potential

    By Andrés Cardenal - August 13, 2013 | Tickers: AMZN, EBAY, MELI

    MercadoLibre (NASDAQ: MELI) is a leading e-commerce company in Latin America. It has a compelling business model and strong growth opportunities. Currency fluctuations could present some headwinds in the near term, but MercadoLibre is positioned to outperform in the long run.

    The business

    MercadoLibre is usually called “the eBay (NASDAQ: EBAY) of Latin America,” and for good reasons. With an ownership of nearly 18%, eBay is a major shareholder in more »

  • A Premium Company in the Bargain Bin

    By Andrés Cardenal - August 9, 2013 | Tickers: COH, KORS, RL

    Coach (NYSE: COH) took a serious hit last week when the company reported disappointing results for the second quarter. Sales in North America have slowed down lately, and the company is clearly feeling the pressure from trendier competitors like Michel Kors (NYSE: KORS). But this is still a very profitable company with a valuable brand and plenty of opportunities for growth, so current weakness looks like a buying opportunity from more »

  • This Disruptive Growth Company Still Has Upside Potential

    By Andrés Cardenal - August 9, 2013 | Tickers: KO, GMCR, PEP, SODA

    SodaStream (NASDAQ: SODA) exploded 15% last week after the company crushed earnings expectations and increased its guidance for the rest of the year. But, even after this move higher, the stock is trading at reasonable valuation levels considering its growth opportunities. As long as the company continues to deliver solid performance, there is still plenty of upside potential for investors.

    Sparkling performance

    SodaStream is trying to revolutionize the carbonated drinks more »

  • A Winner in the Battle for the Living Room

    By Andrés Cardenal - August 7, 2013 | Tickers: AAPL, GOOG, MSFT, NFLX

    Industry giants like Apple (NASDAQ: AAPL), Google (NASDAQ: GOOG) and Microsoft (NASDAQ: MSFT) are stepping up their efforts to win the living room war, an area that could have huge financial and strategic implications over the years to come. It´s still too soon to tell who the winner will be, but one thing is looking quite clear, though: Netflix (NASDAQ: NFLX) seems to be in an outstandingly strong position more »

  • Three Tasty Companies for Your Portfolio

    By Andrés Cardenal - August 6, 2013 | Tickers: CMG, MCD, SBUX

    Investing in restaurants is not very different from choosing a place to eat--at the end of the day, the right decision depends on your personal taste. There are some objective measures of value, quality and growth to consider, and investors should pay close attention to these factors when analyzing investment alternatives. However, keeping these characteristics in mind, investment decisions need to be made in accordance with each investor´s targets more »

  • Big Long-Term Potential for This Global Powerhouse

    By Andrés Cardenal - August 2, 2013 | Tickers: AXP, DFS, MA, V

    MasterCard (NYSE: MA) is firing on all cylinders lately, the stock is trading at all-time highs after delivering a blowout earnings report for the last quarter. Valuation may be getting a little frothy but, make no mistake; this global payments powerhouse still has plenty of upside potential for years to come.

    Business Model

    There are basically two kinds of card companies with very different business models, players like American Express more »

  • Three High Quality Leaders With Strong Dividend Growth Prospects

    By Andrés Cardenal - August 1, 2013 | Tickers: XOM, MCD, WFC

    Industry leaders with indestructible competitive strengths are the way to go when searching for companies providing soundness and reliability for your portfolio. Add a growing dividend to the equation, and things become even more interesting for investors: cash flow distributions provide not only regular income, but also transparency on the company´s fundamental quality.

    Wells Fargo

    When it comes to the big U.S. banks, no other company has the more »

  • Buying a Network of Growing Profits

    By Andrés Cardenal - July 31, 2013 | Tickers: EBAY, FB, GOOG

    When it comes to successful investing, extrapolating a company´s past performance into the future is not enough to pick the best stocks for the long term. Investors need to analyze the company´s competitive strengths to determine if it will be able to continue delivering growing profits for years to come, and the network effect can provide powerful source of self sustainable competitive advantage.

    Network Effect

    The network effect more »

  • The Case for Investing in Technology ETFs

    By Andrés Cardenal - July 31, 2013 | Tickers: AAPL, MSFT, QQQ, XLK, VGT

    Investing in the right sectors is crucial when it comes to generating superior long-term returns for your portfolio, and the technology industry offers unparalleled opportunities for growth and innovation. No other sector has the same kind of dynamism in terms of creating new products with disruptive possibilities that the tech business provides.

    However, competitive risks are always a challenge in such a dynamic sector; for this reason, investing in technology more »

  • A Friend Request From Facebook

    By Andrés Cardenal - July 31, 2013 | Tickers: FB, GOOG, YHOO

    Facebook (NASDAQ: FB) delivered a blowout earnings report last week, and the company is showing impressive strength in key areas like mobile advertising. The social network is moving in the right direction, however, there are some important risks to consider.

    I "Like" this report

    The numbers in the last earnings report were comfortably above analysts' expectations: the company delivered revenue of $1.81 billion versus $1.62 billion estimated by more »

  • This Automaker Is Firing on All Cylinders

    By Andrés Cardenal - July 29, 2013 | Tickers: F, GM, HMC, TM

    Ford (NYSE: F) has been on an impressive run lately as the company benefits from an improved product portfolio, growing demand in key markets and strong financial performance. Even though the stock has risen by more than 90% in the last year, the bull ride is far from over for this iconic American automaker.

    The Products

    With its big fat profit margins, the F-Series provides Ford with undisputed leadership in more »

  • Is it Time to Invest in Europe?

    By Andrés Cardenal - July 26, 2013 | Tickers: SAN, BAMXF, DB, TOT

    The European crisis has been long and painful, and it´s still too early to tell if the Eurozone is leaving the recession behind. However, recent economic data is quite auspicating, so maybe it’s time to invest in European companies while they are still cheap.

    European Green Shoots

    European stocks were rising on Wednesday as the Markit Flash Eurozone PMI index reveled encouraging data about the health of the more »

  • Three Reasons to Buy Apple After Earnings

    By Andrés Cardenal - July 25, 2013 | Tickers: AAPL, GOOG

    Apple (NASDAQ: AAPL) was rising more than 5% on Wednesday after the company reported earnings results above analysts’ expectations the day before. The company is not completely out of the woods yet, but things are looking much better for Apple investors from middle term point of view.

    1. Strong iPhone

    The biggest positive takeaway from Apple´s earnings release is that the iPhone is selling better that most analysts had more »

  • Looking for the Next Berkshire Hathaway

    By Andrés Cardenal - July 24, 2013 | Tickers: BRK-B, BRK-A, LUK, L, MKL

    Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) has delivered truly amazing returns for investors who were smart enough to invest with Buffett and Munger for the long term. However, the company has gotten quite big, and this materially reduces the chances of outsized performance in the future.

    But other smaller companies are trying to imitate Berkshire´s success, and the hunt for the next Berkshire Hathaway, meaning a smaller company with more »

  • The Right Time to Buy eBay

    By Andrés Cardenal - July 23, 2013 | Tickers: AMZN, DFS, EBAY

    eBay (NASDAQ: EBAY) fell by more than 6% after the company missed earnings estimates by a cent last week. The market usually overreacts to short-term news, especially on the negative side, and this seems to be the case with the online retail giant. In case you were waiting for a good entry point, this looks like the right time to press the buy button on eBay

    The Numbers

    The company more »

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