Archive for August, 2017
-
Disney Reports after the Close
Eddy Elfenbein, August 8th, 2017 at 1:02 pmDisney (DIS) is set to report earnings after today’s closing bell. In addition to being a Dow component, Disney is an important media conglomerate:
Disney is set to report its quarterly earnings Tuesday after the closing bell, and one portfolio manager said it could have far-reaching implications for the market given the media giant’s many different properties both in the U.S. and abroad.
“This is kind of a bellwether for so much of the U.S. economy,” said Eddy Elfenbein, portfolio manager at AdvisorShares, referring to Disney’s vast array of assets, which include broadcast, cable, movies and theme parks. “But what I’m going to be looking for is in their cable subsidiaries, [such as] ESPN,” Elfenbein said Monday on CNBC’s “Trading Nation.”
ESPN has traditionally proved quite profitable for Disney, Elfenbein said, but has not fared well recently.
“They’ve been bleeding subscribers recently, and that’s caused a lot of attention from Wall Street. So, I want to see how those numbers are, and how the ESPN business is shaking out,” he said.
-
Morning News: August 8, 2017
Eddy Elfenbein, August 8th, 2017 at 7:05 amChina Takes Away the Punch Bowl
Chinese Trade Data Misses and Export and Import Growth Slows
Drop In German Trade Activity Feeds Into Global Stimulus Debate
Hedge Fund Sues to Have Puerto Rico’s Bankruptcy Case Thrown Out
Trump’s Stalled Trade Agenda Leaves Industries in the Lurch
Gundlach, Wary of Pricey Market, Sets Cap on DoubleLine’s Growth
Tesla Seeks $1.5 Billion Junk Bonds to Fund Model 3 Production
Mazda Announced Breakthrough in Long-Coveted Engine Technology
Avis, Stung by Falling Used-Car Prices, Reports Disappointing Results
Wells Fargo, Awash in Scandal, Faces Violations Over Car Insurance Refunds
Pizza Vending Machines at Little Caesars
Time Inc Misses Revenue Estimates as Advertising Sales Slip
If Retail is Dying, Why is Money Pouring Into Malls?
Michael Batnick: If This Is 1929…
Jeff Carter: Should Valuation Be A Disqualifier For Investment?
Be sure to follow me on Twitter.
-
The Dow Logs Ultra-Rare Winning Streak
Eddy Elfenbein, August 7th, 2017 at 5:56 pm -
The Bull Case for Financials
Eddy Elfenbein, August 7th, 2017 at 4:17 pm -
The Decline and Fall of Value
Eddy Elfenbein, August 7th, 2017 at 10:56 amSteven Russolillo has an interesting article in today’s WSJ on the poor performance of value stocks. Value isn’t in a typical underperformance cycle. Rather, it’s been in a very long stretch of lagging the market.
Stocks that look cheap relative to traditional fundamental metrics such as profit or cash flow have fallen so far out of favor that Goldman Sachs in June questioned whether the markets are witnessing the death of value investing. With value investments in Europe and Asia also struggling, value funds globally are on track to post their worst performance this year relative to growth funds since before the financial crisis.
The struggle for value stocks over such a prolonged period contradicts the popular investment approach coined by financial analyst Benjamin Graham, known as the father of value investing, and since popularized by Warren Buffett. The billionaire investor and Berkshire Hathaway Inc. chairman has attracted a legion of followers who remain confident that value investing will never go out of style.
(…)
Over the past decade, the performance of U.S. growth stocks has been almost three times better than that of value stocks, contributing to what index fund giant State Street Global Advisors calls “the longest period of underperformance for value since the late 1940s.”
One of the problems, I suspect, is that the composition of value has changed. Since the financial crisis, many banks have been pushed into the value bin since they have very low price-to-book ratios. Properly speaking, I doubt many of these beaten-down financials behave as what I think of as value, meaning high-dividend yields. I can’t be positive this is what’s happening, but I’m guessing it’s an issue.
Here’s the S&P 500 Value divided by the S&P 500. Note that the cycle peaked in 2007 right with financial stocks.
-
Morning News: August 7, 2017
Eddy Elfenbein, August 7th, 2017 at 7:06 amGerman Industrial Output Unexpectedly Falls First Time This Year
Renault Forms New Joint Venture Company in Iran
BlackRock, Vanguard Say Bond Market’s Got This Trade All Wrong
The World’s Most Feared Investor
Countering West Coast Pull, by Helping Finance Start-Ups Sell in New York
How This U.S. Tech Giant Is Backing China’s Tech Ambitions
Higher-Cost Crude Could Squeeze Margins at U.S. Refiners
SoftBank Profit Tops Estimates on Shift to Deals, Investing
Sprint, Looking to Get Bigger to Survive, Weighs Deal-Making
Where Are all These Electric Cars Going to Charge?
Bitcoin Soars to Record as Buyers Look Beyond Miners’ Split
Shkreli Sentence Turns on Antics, Investor Impact of Crime
Jeff Miller: Weighing the Week Ahead: Time to Raise Price Targets?
Roger Nusbaum: James Montier Is Still Bearish
Cullen Roche: Let’s Talk About “Maximizing Shareholder Value”
Be sure to follow me on Twitter.
-
“Somewhat Less Famous Twitter User”
Eddy Elfenbein, August 4th, 2017 at 10:08 amFrom Investopedia:
Almost exactly a year ago, then-candidate Donald Trump said of the stock market that “It’s all a big bubble,” as CNBC then reported. Earlier today, President Trump cheered a new market high and “business enthusiasm at record levels,” suggesting between the lines that he deserves credit for both, per one of his tweets. Indeed, the Dow Jones Industrial Average (DJIA) has risen by a remarkable 40% during the last 18 months, well before Trump graced the White House steps, as pointed out by a somewhat less famous Twitter user, Eddy Elfenbein.
-
Cinemark Earns 44 Cents per Share
Eddy Elfenbein, August 4th, 2017 at 9:23 amThis morning, Cinemark (CNK) said they earned 44 cents per share last quarter. That was a penny below estimates. The stock dropped yesterday after AMC completely bombed their earnings report. Whatever’s hurting AMC isn’t plaguing CNK. Here are some numbers:
Cinemark Holdings, Inc.’s total revenues for the three months ended June 30, 2017 increased 0.9% to $751.2 million from $744.4 million for the three months ended June 30, 2016. For the three months ended June 30, 2017, admissions revenues were $449.9 million and concession revenues were $262.3 million. Concession revenues per patron increased 8.9% to $3.78 and average ticket price increased 3.7% to $6.48 for the three months ended June 30, 2017.
(…)
“We continue to be pleased with the consistency of our financial performance, including our second quarter’s global revenue growth, record food and beverage per caps, and year-over-year box office results that again exceeded the North American industry,” stated Mark Zoradi, Cinemark’s CEO. “We remain optimistic about film content for the remainder of the year, as well as the future growth potential that our strong foundation and strategic initiatives provide for our Company.”
Cinemark’s screen count is up to 5,926.
-
Q2 2017 Earnings Calendar
Eddy Elfenbein, August 4th, 2017 at 8:51 amIn our current earnings season, 21 of our 25 Buy List stocks have reported their second-quarter earnings results. Here’s a list of reporting dates, Wall Street’s consensus estimates and actual reported results:
Eddy Elfenbein is a Washington, DC-based speaker, portfolio manager and editor of the blog Crossing Wall Street. His