noah kiedrowski Archives - Page 37 of 45

Disney Pushing New Highs and Breaks All-Time Box Office Record

Posted on December 6, 2016 by Noah Kiedrowski

Introduction

In early September I wrote an article speaking to the fact that The Walt Disney Company (NYSE:DIS) couldn’t seem to get out of its own way when it came to breaking out of its chronic stock slump. Over the past few weeks, Disney has seen a major move towards the $100 threshold after reporting its quarterly results and breaking the all-time worldwide box-office record. This uptick has been buoyed by Doctor Strange, Moana and Rouge One to round out the year at the box office. The stock fell from the $120s in late 2015 to low $90s and had been stuck in the $90 range all throughout 2016. This perpetual slump was almost entirely attributable to the decrease in ESPN subscribers and thus revenue and profit from their Media Networks segment. Excluding ESPN, Disney has been executing well and reporting record numbers throughout its other business segments. Disney has a deep and diversified enough entertainment portfolio to make a compelling case that these ESPN fears are overblown. Disney’s portfolio consists of Marvel Entertainment, Lucasfilm, Pixar, ESPN, ABC, 32% shareholder in Hulu and of course the core Disney franchise (Disney Studios, Disney consumer products, Parks and Resorts and Disney Cruise Line). The revenue stream from these assets is as diverse as the assets themselves. The ESPN franchise within the Media Networks segment generates revenue/operating income that are disproportionate to the amount of the company’s overall revenue and operating profit. Thus, one can see why investors were spooked after two consecutive significant declines in ESPN subscribers and thus numbers over the past three years. The decreases in revenue within this segment have been arrested and on the rebound due to measures put in place at Disney. As this revenue stream slowly recovers with initiatives put in place and investors can rest assure, Disney will likely retrace the $120 level seen in 2015. Continue reading "Disney Pushing New Highs and Breaks All-Time Box Office Record" →

Visa Delivers - Visa Europe Integration Begins To Shine

Posted on November 28, 2016November 25, 2016 by Noah Kiedrowski

Introduction

As cashless societies forge ahead, Visa remains at the forefront of this movement with its dominance in the credit card space. Visa Europe acquisition, growing dividends, share buybacks and accelerating revenue and EPS growth culminates into a compelling investment as a great long-term core portfolio holding. As many countries make a secular transition towards cashless societies, the credit card transaction space will continue to reap the rewards of this trend via swipe fees and other services. Globally, Visa has been at the forefront of this space, accounting for more than 45% and 68% of all credit card and debit card transactions, respectively. Visa Inc. (NYSE:V) has it eyes set on capturing more market share from competitors, notably American Express via securing long-term branded credit card relationships with Costco, Fidelity and USAA. Visa has recently signed a partnership with PayPal which allows U.S. merchants with a Visa payWave reader to accept PayPal as a form of payment thus leveraging Visa’s payments network while benefiting Visa and merchants alike. Visa is unique in that it does not take on any financial liability as it serves as an intermediary to process payment transactions and capturing a fee for its payments technology/network. I feel that Visa is a great long-term holding that offers growth and stability independent of banks and/or interest rates. This thesis is further supported by the most recent earnings announcement. Continue reading "Visa Delivers - Visa Europe Integration Begins To Shine" →

McKesson Craters - Misses Q2 2017 Estimates and Lowers Guidance

Posted on November 5, 2016November 4, 2016 by Noah Kiedrowski

Overview

McKesson Corporation (NYSE:MCK) recently reported Q2 2017 numbers that missed analysts’ expectations on both EPS and revenue, missing by $0.11 per share and $1.25 billion, respectively. This was the fourth consecutive quarter in which McKesson has missed revenue targets. As a result of the most recent miss, shares of McKesson sank by ~$40 per share or 23% beginning in after-hours trading and through the next trading day (Figure 1). In February I wrote a piece on McKesson stating that I felt McKesson presented a buying opportunity when the stock sank to a 52-week low of $148 per share. As that call began to come to fruition, I wrote a series of follow-up articles voicing caution as the share price appreciated. On March 21st I framed my thesis as being well intact as the shares appreciated to the mid $150s. On May 29th I stated that concerns remained despite the solid Q4 2016 quarterly earnings as shares appreciated to the low $180s. On July 20th I stated that shares had appreciated 34% by reaching the ~$200 level and at that point, I was hesitant due to pressures regarding the pharmaceutical supply chain and earnings from other pharmaceutical wholesalers such as Cardinal Health. At the writing of the July 20th article, I had relinquished my position in McKesson due to the run-up in share price and the growing concerns of the business model in combination with social and political pressures.

Chart of McKesson Corporation (NYSE:MCK)
Figure 1 – McKesson’s free fall after missing Q2 2017 earnings and lowering guidance

Continue reading "McKesson Craters - Misses Q2 2017 Estimates and Lowers Guidance" →

Biotech's Upward Trend - IBB Breaks $300

Posted on October 22, 2016October 21, 2016 by Noah Kiedrowski

Introduction and Backdrop

As of recent, the iShares Nasdaq Biotechnology ETF (NASDAQ:IBB) has caught an upward trend and briefly crossed the $300 per share threshold for the first time over the past 9 months. The political backdrop has been very contentious and even more so after two of the three presidential debates have wrapped up. I’ve written several pieces evaluating the massive sell-offs in the biotech sector and how extraneous events such as oil, China, interest rates and to a large extent political threats are merely noise in the larger picture. These external events provide great buying opportunities in high-quality companies or the cohort itself as represented by the sector ETF, IBB as a proxy. There’s no doubt that there’s at least a loose correlation if not a direct correlation between opportunistic political posturing by political front-runners (i.e. Hilary Clinton and Bernie Sanders) and the chronic price suppression of IBB. Each time a tweet is pushed out to social media regarding drug pricing and/or specific attacks on pharmaceutical companies, the entire cohort takes a significant hit as reflected in the price action of IBB. I contend that political posturing played a major role in the sell-off of the healthcare cohort and more specifically biotech stocks. Drug pricing was used as a centerpiece and scapegoat for political gains. Continue reading "Biotech's Upward Trend - IBB Breaks $300" →

Tag: noah kiedrowski

Disney Pushing New Highs and Breaks All-Time Box Office Record

Introduction

Visa Delivers - Visa Europe Integration Begins To Shine

Introduction

McKesson Craters - Misses Q2 2017 Estimates and Lowers Guidance

Overview

Biotech's Upward Trend - IBB Breaks $300

Introduction and Backdrop

It’s not goodbye, it’s hello Magnifi!

Introduction

Introduction

INO Health & Biotech Stock Guide

BIOTECH, HEALTH & PHARMA NEWS

THE POLITICAL SEESAW

Overview

Introduction and Backdrop

It’s not goodbye, it’s hello Magnifi!