Apple Earnings: Update

Apple delivered one of its most interesting earnings reports in a while this afternoon.

Just when the world was ready to bury Apple, it delivered a strong beat on revenue, EPS, and perhaps most importantly, iPhone sales.

Let’s get right to the big numbers everyone cares about:

  • Revenue: $45.6 billion, up 4% year-over-year, versus $43.6 billion expected by analysts.
  • EPS: $11.62 versus $10.16 expected by analysts.
  • iPhones: 43.7 million, up 17% year-over-year, versus 37.7 million expected by analysts.
  • iPhone ASP: $596 versus $610 expected by analysts.
  • iPads: 16.35 million, down 16% year-over-year, versus 19.7 million units expected by analysts.
  • iPad ASP: $465 v $430 expected by analysts.
  • Macs: 4.1 million versus 4.03 million expected by analysts.
  • iPods: 2.76 million versus 2.99 million expected by analysts.
  • Gross Margin: 39.3% versus 37.7% expected by analysts.
  • Q3 Revenue: $36-38 billion versus $38.1 billion expected by analysts.

Apple also announced a 7-for-1 stock split, and an increase in its buyback program and dividend.

On the earnings call, CEO Tim Cook explained the buyback by saying that he thinks Apple is massively undervalued. He believes it has a bright future ahead and the share repurchases are a sign of the board’s faith in Apple’s future.

He also said that the company was splitting the stock to “make it more accessible to a larger number of shareholders.” That sounds like Cook wants the share price to be more affordable for average mom and pop type investors. Right now, the shares are ~$524, which puts them out of price range for most normal people.

So, now that we’ve gotten the hard numbers out of the way, let’s talk about the most intersting things from this report and the earnings call.

The iPhone was way ahead of expectations. On the call, Cook said each category of the iPhone outsold the previous year in that category. (In other words, the 5S outsold last year’s 5, and the 5C outsold last year’s 4S, and the 4S outsold the 4 from last year.)

Cook didn’t get into product mix, but it seems like the iPhone 4S was the real star for Apple. The average selling price for the iPhone was down $41 sequentially, the biggest ever drop in the company’s history. On the earnings call, Cook said the 4S was selling well in greater China.

CHARTS ( Business Insider .com)

Read more: http://www.businessinsider.com/apple-q2-earnings-2014-4#ixzz2zkfc5VNg

Trading Alert : TINY Makes A BIG Jump

A very volatile stock – small increase in demand makes the needle jump

HARRIS AND HARRIS GROUP INC(TINY:NASDAQ, US)

BuySell
3.53USDIncrease0.1396(4.12%)Volume: 
Average
As of 23 Apr 2014 at 1:55 PM EDT.  


QUOTE DETAILS

Open 3.36 P/E Ratio (TTM)
Last Bid/Size 3.51 / 3 EPS (TTM) -0.65
Last Ask/Size 3.53 / 1 Next Earnings 5 May 2014
Previous Close 3.39 Beta 1.34
Volume 41,520 Last Dividend
Average Volume 66,618 Dividend Yield 0.00%
Day High 3.53 Ex-Dividend Date
Day Low 3.36 Shares Outstanding 31.2M
52 Week High 3.94 # of Floating Shares 28.56535M
52 Week Low 2.83 Short Interest as % of Float 0.27%

 

Trading Alert WRES Part 2 New 52 Week High

Warren Resources began the morning on below average volume.

As the price moved up so has the volume.

Now at 410.000 shares volume is above average.

 

WRES is now one of the top three holdings for Jack a. Bass Managed Accounts

to join in the profits email info@jackbassteam.com or call Jack direct at 604-858-3202

Pacific Time Zone  Monday to Friday 9:00 – 5;00

WARREN RESOURCES INC(WRES:NASDAQ, US)

BuySell
5.48USDIncrease0.215(4.09%)Volume: 
Above Average
As of 23 Apr 2014 at 11:49 AM EDT.

 

QUOTE DETAILS

Open 5.27 P/E Ratio (TTM) 12.6x
Last Bid/Size 5.47 / 8 EPS (TTM) 0.42
Last Ask/Size 5.48 / 6 Next Earnings 5 May 2014
Previous Close 5.26 Beta 2.32
Volume 412,393 Last Dividend
Average Volume 881,294 Dividend Yield 0.00%
Day High 5.48 Ex-Dividend Date
Day Low 5.20 Shares Outstanding 73.1M
52 Week High 5.48 # of Floating Shares 69.65162M
52 Week Low 2.46 Short Interest as % of Float 2.00%

 

 

Trading Alert WRES

Added to positions

- Jack A. Bass Managed Accounts

WRES

WARREN RESOURCES INC(WRES:NASDAQ, US)

BuySell
5.26USDIncrease0.07(1.35%)Volume: 
Below Average
As of 22 Apr 2014 at 10:28 AM EDT.

QUOTE DETAILS

Open 5.22 P/E Ratio (TTM) 12.4x
Last Bid/Size 5.25 / 16 EPS (TTM) 0.42
Last Ask/Size 5.26 / 2 Next Earnings 5 May 2014
Previous Close 5.19 Beta 2.31
Volume 108,870 Last Dividend
Average Volume 871,471 Dividend Yield 0.00%
Day High 5.27 Ex-Dividend Date
Day Low 5.13 Shares Outstanding 73.1M
52 Week High 5.44 # of Floating Shares 69.65162M
52 Week Low 2.46 Short Interest as % of Float 2.00%

Under Armour BUY Target Price $ 60

UA : NYSE : US$53.01
BUY 
Target: US$60.00

Consumer & Retail — Footwear and Apparel
SOLID Q1 SALES MOMENTUM;
UPDATING EPS FOR STOCK SPLIT
Investment recommendation
We are expecting another solid Q1 print from UA when it reports
earnings on Thursday, April 24 BMO. Our consensus 4c EPS estimate
could prove conservative by 1-2c as we believe solid apparel and
footwear sales will likely drive top line growth in excess of our 25.3%
estimate. Specifically, we believe apparel categories in women’s and
kids continued to lead the momentum as new product introductions (e.g.
Amour Vent) along with updates to existing apparel lines continue to
resonate well with consumers. Our store checks also suggest recent
footwear launches (e.g., the Speedform Apollo) were very well received,
supporting our belief that UA is making strong progress in the category.
We believe UA is one of the few outperforming brands in retail, and as
such we would use the recent 15% pullback to add to positions.
Investment highlights
 We believe gross margin will likely top our +88bps estimate, largely
due to the continued supply chain benefits partially offset by
stronger yet lower margin footwear sales. We believe the work UA
has done to enhance its supply chain by instituting a longer term
forecasting methodology is translating into higher fill rates and
more on time deliveries while not stressing the system.
 Now that UA will have full visibility into its fall order book, we
expect FY14 sales/EBIT guidance to be raised, albeit modestly, as
has been the custom for the past three years.
Valuation
Our split adj. $60 target is a blend of 50x 2015EPS/25X EBITDA/DCF

Insider Buying

This is a PROMOTION from Zack’s – but a good summary, nevertheless.

How many times have you heard that as stocks are plunging?

I don’t know about you, but it’s easier said than done.

But there’s one group of investors who charge in to buy when stocks are selling off: the corporate insiders.

How do they do it?

They have 2 key advantages over you and I that provide them the edge during uncertain times. If you follow their lead, you can have that edge too.

Two Key Advantages Give Insiders the Edge 

1) Key Advantage #1: Insiders Have Information 

Everyone knows that information is power.

Who knows more than those who are actually running the company?

The corporate insiders, the CEO, CFO, General Counsels and even the Head of Human Resources know who is getting hired or fired. They know that last month was a record month for sales and that there is a new factory opening in China, which hasn’t been announced publicly yet.

Even better, they can actually purchase their company’s stock, knowing all this information, and it’s perfectly legal.

When corporate insiders get excited about their company’s prospects, you should too.

2) Key Advantage #2: Insiders Know When to Buy Insiders don’t buy their own shares willy-nilly. As a stock rallies, insiders are likely to stay on the sidelines because their stock is no longer cheap.

Insiders like bargains just like the rest of us.

That’s why during this recent bull market over the last 16 months, the number of insiders buying has fallen compared to the selling. Just like you, the insider doesn’t want to buy an overpriced stock.

But when the company stock sells off, especially in a short period of time, the insider sees it as an opportunity. The insiders want a deal.

This is what happened in August 2011 when the S&P 500 plunged from its April high. In the first nine days of August, 919 insiders at more than 100 different companies jumped in to buy their companies’ shares. It was the largest amount of insider buying since the market bottom in March 2009.

Were they right?

Just six months later, the S&P 500 had rebounded over 15%. Stocks never looked back from that sell off and the S&P has gone on to make dozens of new record highs since then.

And the insiders cashed in.

Are the Insiders About to Jump In Again? 

The NASDAQ is down nearly 10% from its recent highs. This is the largest pullback in the NASDAQ in three years.

And some individual stocks have seen an even more significant pullback. Within the NASDAQ 100, 29 of those 100 companies have seen their share price fall more than 20% from their highs.

As we’ve seen, the insiders like to buy when there are dramatic sell offs. When everyone else is selling, they see a bargain. Remember, they have knowledge of what is going on inside the company so they are more optimistic than the rest of us.

Just like in 2011, 2014 is turning out to be an opportunity for insiders.

I’m expecting to see a deluge of insider buying. They love their deals and there haven’t been many chances like this in the last few years.

Are you ready to follow their lead?

Where to Find the Insider Buys 

Anyone can go on the SEC website and get the insider trading information but it’s time consuming to search by individual companies.

Some investment firms collect the insider buying data and can provide it to you as a weekly list. Have you ever seen one of those lists? The sheer number of companies can be overwhelming.

When the insiders step in to buy en masse, it can become even more overwhelming with hundreds and hundreds of insiders buying at countless numbers of companies. Imagine trying to figure out which of those companies you should be buying?

 

Goldman on High Frequency Trading

There’s only one bank that’s come out publicly against high frequency trading, and that’s Goldman Sachs.

It’s not an easy thing to do. Banks work with high frequency trading firms to execute orders, they also have their own dark pools — private, anonymous exchanges that have become a part of the new market ecosystem synonymous with HFT. Goldman’s dark pool is called Sigma X.

So why would a bank take on HFT?

Because Goldman bank believes it’s hurting their equities trading business, which has been on the decline for some time now. And as the WSJ’s Justin Baer and Scott Patterson point out, the bank would rather have a healthy stock trading business that can make it billions of dollars than a dark pool that only brings in hundreds of millions of dollars.

Thursday morning’s first quarter earnings numbers say it all. Goldman is losing stock trading share to its rivals. In Q1 2014, the bank made $416 million trading equities for clients. That’s down 49% from the same time in 2013 when the bank made $809 million.

In 2013, a year when the price of stocks exploded, Goldman’s client stock trading revenue fell from $3.2 billion in 2012 to $2.6 billion.

Arch rival Morgan Stanley, on the other hand, has seen it’s equity sales and trading rise 16% over the last year, and 24% over the last quarter.

Obviously for the biggest baddest bank on Wall Street, this is worrisome. The bank is not only losing market share in equity sales, but also its dark pool has lost its share of the market as rivals from Barclays, Deutsche Bank and Morgan Stanley have entered the market.

So once big institutional clients — the mutual funds and hedge funds that HFT firms love to pick off when they notice the institutionals’ big block trades in the market — started complaining about HFT, Goldman knew it was time to change their strategy.

Patterson and Baer reported that at a meeting in London several weeks ago, Goldman’s institutional clients voiced concerns that are now familiar thanks to Michael Lewis’ book, ‘Flash Boys‘.  They said that they felt HFT firms were given an unfair advantage and that the market was too opaque, complicated and dangerous.

That’s when Goldman started sending around internal memos asking for commentary on market structure, and COO Gary Cohn wrote the anti-HFT op-ed that shocked people across the Street.

In the op-ed, he mentions one more issue that has Goldman worried about HFT. The bank is known for having some of the best technology in finance, but last August a glitch in its software sent erroneous quotes into the market and cost the bank $100 million. And Goldman doesn’t lose $100 million.

From Cohn’s op-ed:

The economic model of the exchanges, as shaped by regulation, is oriented around market volume. Volume generates price discovery and liquidity, which are clearly beneficial. But the industry must recognize how certain activities related to volume can place stress on a market infrastructure ill-equipped to deal with it.

In other words, exchange software is now so complicated that it is not something a firm can do as a side show — it has to be the main event. 

Read more: http://www.businessinsider.com/why-goldman-sachs-2014-4#ixzz2zFx4Mt9a

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OPKO Health NR – Aquisition

OPKO Acquires Next Generation Dry Powder Inhaler to Treat Respiratory Disorders

OPKO HEALTH INC(OPK:NYSE, US)

BuySell
8.20USDDecrease0.13(-1.56%)Volume: 
Average
As of 17 Apr 2014 at 11:53 AM EDT.  

QUOTE DETAILS

Open 8.29 P/E Ratio (TTM)
Last Bid/Size 8.19 / 12 EPS (TTM) -0.33
Last Ask/Size 8.20 / 20 Next Earnings 5 May 2014
Previous Close 8.33 Beta 1.01
Volume 1,351,913 Last Dividend
Average Volume 3,501,287 Dividend Yield 0.00%
Day High 8.37 Ex-Dividend Date
Day Low 8.12 Shares Outstanding 412.9M
52 Week High 12.95 # of Floating Shares 221.0759M
52 Week Low 6.14 Short Interest as % of Float 21.06%

Inspiromatic™ Improves Drug Delivery, Monitors Patient Inhalation and Provides Real-Time Patient Feedback

MIAMI–(BUSINESS WIRE)– OPKO Health, Inc. (NYSE:OPK) has entered into a definitive agreement to acquire Inspiro Medical Ltd. (“Inspiro”), an Israeli medical device company developing a new platform to deliver small molecule drugs such as corticosteroids and beta agonists or larger molecules to treat respiratory diseases. Inspiro’s Inspiromatic™ is a “smart” easy-to-use dry powder inhaler with several advantages over existing devices.

Inspiromatic™ offers improved drug deposition to the lower airways of patients and real time data for patient compliance monitoring. The device has an internal microcontroller and flow sensor that controls the delivery of the medication and, using micro-pump technology, dispenses the drug particles at the right speed without the need for forceful inhalation. It also provides instant feedback to the patient with a green or red flasher light to indicate proper inhalation and a beeper after the dose has been delivered. For physicians, Inspiromatic™ provides a built-in logger that stores patient use data for easy access and transmission by electronic devices such as smart phones.

In a recently completed, First In Man double blinded clinical study conducted in 30 asthmatic children comparing Inspiromatic™ to a market leading dry powder inhaler, Inspiromatic™ demonstrated superior pulmonary delivery of the active drug.

“We are pleased to add this next generation inhaler to OPKO’s growing product portfolio,” stated Phillip Frost, M.D., OPKO’s CEO and Chairman. “We expect this innovative device to play a valuable role in the improvement of therapy for asthma, chronic obstructive pulmonary disease, cystic fibrosis and other respiratory diseases. We plan to use the Inspiromatic™ device to test the inhaled form of OPKO’s new sulfated disaccharide drug against these disorders. This drug product is still undergoing pre-clinical testing prior to submission of an IND, but animal data indicates safety and efficacy for both inhaled and orally delivered forms. Of course, we believe that Inspiromatic™ can improve outcomes of treatment with other drugs, those presently available in more ‘standard’ type inhalers, as well as new inhalation drugs being developed. This acquisition fits our strategy of developing new products that address large markets in need of more effective therapeutic solutions.”

Nimrod Kaufmann, CEO and Co-Founder of Inspiro, commented, “We are extremely proud of Inspiro’s success in bringing our smart Inspiromatic™ respiratory drug-delivery device to market. With Inspiro now a part of OPKO, we will be able to help more people faster. Inspiro joining OPKO is a big win for the shareholders of both Inspiro and OPKO, as well as good news for our patients and physicians.”

Eran Feldhay, M.D., CEO of Trendlines Medical, Inspiro’s largest shareholder, added, “The acquisition of Inspiro is our third exit in eight months, all to U.S.-based multinational corporations. This success brings continuing confirmation of the strength of the Trendlines team in fulfilling our vision of creating and developing companies to improve the human condition. We are very pleased to see OPKO take the Inspiro opportunity forward.”

Trading Alert : Warren Resources

Volume and price moving higher on this undervalued play

 

WARREN RESOURCES INC(WRES:NASDAQ, US)

BuySell
5.20USDIncrease0.39(8.11%)Volume: 
Above Average
As of 17 Apr 2014 at 10:36 AM EDT.  

QUOTE DETAILS

Open 4.81 P/E Ratio (TTM) 11.5x
Last Bid/Size 5.20 / 2 EPS (TTM) 0.42
Last Ask/Size 5.21 / 10 Next Earnings 5 May 2014
Previous Close 4.81 Beta 2.32
Volume 876,420 Last Dividend
Average Volume 592,419 Dividend Yield 0.00%
Day High 5.25 Ex-Dividend Date
Day Low 4.81 Shares Outstanding 73.1M
52 Week High 5.27 # of Floating Shares 69.65162M
52 Week Low 2.46 Short Interest as % of Float 2.00%
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