Bobby Shethia

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  • Volkswagen, King of The Chinese Road

    By Bobby Shethia - June 19, 2013 | Tickers: F, GM, TM, VLKAY

    Last month I wrote about Ford’s (NYSE: F) China Strategy, highlighting the important trends in the Chinese market, and how important it was for Ford, a late entrant, to gain market share in the world’s largest auto market.

    As fast as Ford is likely to grow, it’s worthwhile to take a closer look at the Chinese auto market leader Volkswagen (NASDAQOTH: VLKAY) and see what they have more »

  • Ford's China Strategy

    By Bobby Shethia - May 6, 2013 | Tickers: F, GM, VLKAY

    Car and truck makers sold 18.9 million vehicles in China last year, up 2.7% from a year ago, with growth sputtering from highs of 30% in 2010 and 42% in 2009. After overtaking the U.S. in 2009, China became the world’s largest auto market.

    Ford (NYSE: F) unfortunately, entered the market late; in 2003. Ford CEO Alan Mulally , who plans to steer $5 billion in four more »

  • Ford's Strengths Make It a Geat Bargain

    By Bobby Shethia - February 19, 2013 | Tickers: F, TM

    I own Ford, (NYSE: F) and the recent drop of 9%, due to expectations of a weak 2013 in Europe, suggests an opportunity to buy more. Sure, Europe will continue to bleed money -- Ford expects to lose $2 billion in Europe this year, but in my opinion this is already reflected in the price. At $49 billion, Ford 's market cap is a low 37% of sales as compared to more »

  • Dollar Tree: Small is Beautiful

    By Bobby Shethia - November 19, 2012 | Tickers: DG, DLTR, FDO, WMT

     Discount Stores:Five Impressive Years

    All Numbers in Percent except PE

    Forward P/E

    EPS growth past 5 years

    EPS growth next 5 years

    Sales growth past 5 years

    Return on Equity

    Total Debt/Equity

    Gross Margin

    Net  Margin

    Dollar Tree

    14.1

    26.7

    17.0

    10.8

    33.9

    17.0

    35.8

    7.6

    Family Dollar

    13.7

    17.1

    14.0

    6.4

    35.4

    42 more »

  • A Home Away From Home

    By Bobby Shethia - September 17, 2012 | Tickers: EXPE, AWAY, PCLN

    HomeAway (NASDAQ: AWAY) has some first mover advantages in the vacation home rental industry. The largest player in a fragmented industry, it is also reshaping it, making it more structured and organized. Unlike hotel and resort properties, most vacation rentals are smaller -- second homes, shared travel, and mom and pop bed and breakfasts. Very popular in Europe, this segment of travel is catching up in the US and also growing more »

  • TD Bank a Truly Disciplined Banker

    By Bobby Shethia - August 25, 2012 | Tickers: C, JPM, TD, WFC

    TD Bank (NYSE: TD) behaved like a truly seasoned banker and avoided the housing bubble, escaping the fate of its American cousins. As Amanda Alix wrote in Why these 5 Canadian banks rock, TD’s larger exposure to the Canadian housing market -- where their standards were not as lax -- helped.

    With its peers floundering, TD remained healthy and cash rich, scooping up Commerce Bank, Chrysler’s finance arm and credit more »

  • Stay LinkedIn for the Long Term

    By Bobby Shethia - August 15, 2012 | Tickers: FB, LNKD, MWW

    To most admirers of LinkedIn (NYSE: LNKD), the biggest question is -- is the premier jobs hub priced to perfection?. With consensus estimates pointing to 63 cents earnings for 2012 and $1.31 for 2013, LinkedIn has a whopping forward earning multiple of 79! And with the way the market has punished social network high fliers Facebook (NASDAQ: FB), Zynga and Groupon, surely LinkedIn is a likely candidate for a hammering more »

  • Scrappy Sprint Should Survive

    By Bobby Shethia - August 15, 2012 | Tickers: AAPL, T, S, VZ

    Sprint (NYSE: S) raced ahead this August with stellar second quarter results, handily beating estimates and pointing towards a tighter race with arch rivals AT&T (NYSE: T), Verizon (NYSE: VZ) and T-Mobile.

    Five takeaways from June 2012 earnings

    iPhone sales rang in at 1.5 million, cumulatively topping 4.5 million since Sprint signed the contract with Apple (NASDAQ: AAPL) last October. Sprint is on the hook for $15 more »

  • Nike Remains a Great Long Term Buy

    By Bobby Shethia - August 9, 2012 | Tickers: ADDYY, NKE

    Nike’s (NYSE: NKE) performance for the financial year ended May 2012 was way below par for the sports apparel and footwear giant. While revenues grew 16%, net income inched up a measly 4% and earnings helped by a generous buyback climbed faster at 8%. The gross margin sunk to 43.4%, down 220 basis points from 45.6% last year. Trimming overhead and sales, Nike managed to keep net more »

  • This Retailer is Too Erratic to Buy at this Price

    By Bobby Shethia - August 6, 2012 | Tickers: AMZN, BBBY, WSM

    Williams-Sonoma(NYSE: WSM), retailer of higher-end home furnishings operates five retail chains, Williams-Sonoma, Pottery Barn, Pottery Barn Kids, West Elm and the recently added Rejuvenation, earning 56% of revenues from retail stores and the rest from website and catalog sales.

    Williams-Sonoma’s strengths

    Williams-Sonoma went through two terrible years in 2008 (year ended Jan 2009) and 2009, (year ended Jan 2010), with revenues dropping from a peak of $3.9 more »

  • Bed Bath & Beyond - Worth Buying On Declines

    By Bobby Shethia - July 30, 2012 | Tickers: BBBY

    Bed Bath and Beyond's (NASDAQ: BBBY) first quarter of fiscal 2012 was a huge disappointment, with comps growing only 3% and Bed Bath ratcheting down expectations to low single digit earnings growth for fiscal 2012. Its stock price dropped almost 20% from its peak of $ 75.84, and has since stabilized in the low sixties.

    From fiscal 2008 to 2011, in spite of a weak housing market, Bed Bath more »