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Sammy Pollack

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  • Sell Coinstar After Netflix Reports Blowout Earnings

    By Sammy Pollack - April 23, 2013 | Tickers: CSTR, NFLX

    On Monday, Netflix (NASDAQ: NFLX) reported stronger than expected first quarter results:

    • 2 million new U.S. streaming customers
    • Adjusted earnings of 31 cents per share compared to forecast of 19 cents per share
    •  1 million new streaming customers in markets outside the U.S. including Canada, Europe, and Latin America 
    • $1 billion revenue 
    Following the results, as shown by the chart below, shares of Netflix surged higher.

    NFLX data more »

  • Time To Buy These Two Speculative Insurance Companies

    By Sammy Pollack - April 22, 2013 | Tickers: MTG, RDN

    On March 7, 2013, in a piece entitled MGIC and Radian Surge: Updating My Outlook, I said:

    I am maintaining my long-term bullish outlook for both MTG and RDN. However, I would not buy shares right now. Investors should look to buy either MTG or RDN on a significant pullback or after both stocks have gone through a consolidation period.

     

    The chart below shows how MGIC Investment Corp (NYSE: MTGmore »)

  • 3 Gold Mining Stocks To Consider

    By Sammy Pollack - April 10, 2013 | Tickers: AEM, GFI, GG

    Over the past few months, despite the stock market's rally to an all-time high, shares of gold mining companies have been under severe selling pressure. However, at this point, in my opinion, it is time to consider buying some of these beaten down names. In particular, Gold Fields Ltd (NYSE: GFI), Goldcorp (NYSE: GG), and Agnico Eagle Mines Ltd (NYSE: AEM) 

    Dividend

    As shown by the chart below, GFI more »

  • Buy This Airline Stock After Delta Leads Sector Sell-Off

    By Sammy Pollack - April 3, 2013 | Tickers: DAL, LCC

    On Tuesday, as shown by the chart below, shares of the major airlines, US Airways (NYSE: LCC), United Continental, Delta (NYSE: DAL), and Southwest all traded sharply lower despite a more than eighty-point gain during the trading session by the Dow Jones Industrial Average. 

    DAL data by YCharts

    Delta Leads The Way

    The industry wide sell-off was led by Delta after the company reported disappointing results and cut its outlook more »

  • Darden Restaurants: A Good Fit For Berkshire

    By Sammy Pollack - March 4, 2013 | Tickers: BRK-B, DRI, HNZ

    On February 14, 2013, as I suggested was possible a month earlier, Berkshire Hathaway (NYSE: BRK-B) announced a joint deal with Brazilian based 3G ventures to buy H.J. Heinz (NYSE: HNZ) for $23.2 billion. However, despite this large deal, Buffett has said he is still looking for more acquisitions. I believe Darden Restaurants (NYSE: DRI) would be a good fit for Berkshire.

    Buffett Buys What He Knows

    One more »

  • What the Merger Means for the 5th Largest US Airline

    By Sammy Pollack - February 26, 2013 | Tickers: JBLU, LCC

    Just days ago, AMR and US Airways (NYSE: LCC) announced their much anticipated merger creating the world's largest airline. After the merger is completed, the new AMR will surpass both Delta and United Continental (UAL) to become the world's largest with just over 20% of domestic market share. Following AMR, Delta, United, Southwest, and the fifth largest domestic carrier, JetBlue (NASDAQ: JBLU). Without question, this merger will have more »

  • What Do Safeway Short-Sellers See?

    By Sammy Pollack - February 22, 2013 | Tickers: SWY, SVU, KR

    Shares of Safeway (NYSE: SWY), North America's second largest supermarket chain behind Kroger (NYSE: KR), are down more than 35% over the past five years.

    SWY data by YCharts

    Short Interest

    As of the most recently reported figures (Jan. 31, 2013), short interest in Safeway stood at more than 82 million shares, or 32.3% of the float. The high short interest has led me to look at what more »

  • 3 Reasons to Consider Buying This Railroad Stock

    By Sammy Pollack - February 6, 2013 | Tickers: ANR, ACI, CSX, BTU

    Over the past year, despite a more than 14% move higher in the S&P 500, shares of CSX Corp (NYSE: CSX) are down. There are three reasons to consider buying CSX now.

    CSX data by YCharts

    Valuation

    As shown by the chart below, CSX is trading close to historic lows in terms of PE ratio. Given this, I believe the downside is relatively small while the upside is big more »

  • Why I Expect These Two Refiners To Continue Rallying

    By Sammy Pollack - February 1, 2013 | Tickers: MPC, PSX, TSO, VLO, WNR

    Over the past year, one of the strongest market subsectors has been refiners. Shares of all major refiners, Phillips 66 (NYSE: PSX), Western Refining (NYSE: WNR), Valero (NYSE: VLO), Tesoro (NYSE: TSO), and Marathon Petroleum (NYSE: MPC) have all been very stong. While I expect this trend to continue into 2013, there are two refining stocks which I am especially bullish about: WNR and TSO. 

    Short Interest 

    Despite trading at more »

  • Why Warren Buffett Might Buy Apple Shares

    By Sammy Pollack - January 30, 2013 | Tickers: AAPL, BRK-B, IBM

    Everyone who follows the stock market knows that shares of Apple (NASDAQ: AAPL) have been under heavy selling pressure over the past few months. Despite the fact that Warren Buffett does not usually take stakes in technology companies, I believe there are reasons why Buffett could be a buyer of AAPL at current levels.

    Buffett doesn't usually buy tech stocks

    Throughout his investing career, Warren Buffett, chairman & CEO of more »