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Oct 17, 2017
Netflix's Third Quarter Shows Free Cash Burn, More Debt
The Netflix app is displayed alongside other streaming media services on the homepage of a Roku Streaming Stick. (Photo credit: Matthew Keys / Flickr Creative Commons)Netflix is burning through free cash and the company’s balance sheet is ballooning with debt. The junk-rated company continues to attract buyers in this frothy stock market, however. Oct 14, 2017
Euphoria Running Rampant: Investigating Some of the Hottest Names Around
Image Source: Tesla Roadster. As we march forward in what Morgan Stanley has dubbed a bull market of “epic proportions,” euphoria appears to be at levels perhaps not seen since the dot-com bust of the early 2000s. Let’s take a look at some of the “hottest” names on the market. Oct 5, 2017
Competitive Pressures Not Going Away for Teva
Image Source: Mylan. The end of the patent life of a lucrative product can often lead to significant legal strife as aspiring biosimilar equivalents jockey for exclusivity. We have found the recent aggressive move by Mylan noteworthy in our ongoing coverage of Teva’s recent struggles. On a separate but related note, the settlement between Amgen and Abbvie underscores the volatile nature of maneuvers conducted in order to extend the patent life of a highly successful product. Oct 5, 2017
The Legal Battle Between Regeneron and Amgen Heats Up
Image Source: Regeneron. The legal battle between two of the titans of the biotech world heated up further with a recent ruling overturning the injunction of a critical asset. We are updating our thesis in light of current events. Oct 2, 2017
Verint Systems: An Overlooked Idea on Cybersecurity
Image Source: Verint. The Best Ideas Newsletter idea is trying to break through the mid-$40s level, which has been illusive since late 2015. Sep 30, 2017
Amazon Casts a Large Shadow Over the Pharmacy Industry
Image Source: Mike Mozart. It is our belief the food retailing industry is in the midst of widespread disruption with Amazon’s attempt to break into the supermarket game with its audacious purchase of Whole Foods. The Whole Foods acquisition is not likely to be an isolated one-off event; instead, it may be a harbinger of Amazon’s ambition to break into new markets, thus expanding its overall percentage of retail sales. We update our views on Amazon and how the company may eventually impact newsletter portfolio holding CVS Health. Sep 24, 2017
How Strong Is Caterpillar’s 2.5% Dividend Yield?
Image Shown: A 10+ year share-price chart of Caterpillar. The stock has recently set new all-time highs.Caterpillar’s stock has reached new all-time highs! How excited should income investors be? Sep 24, 2017
AT&T’s 5% Dividend Yield: Is It Sustainable?
Image Source: Mike Mozart. The question on everyone’s minds: Is AT&T’s dividend sustainable? Sep 22, 2017
Best in Biotech? Global Blood Therapeutics' Promising Treatment for Sickle Cell Anemia
Image Source: National Institute for Health. We remain impressed with the depth of research conducted over a wide host of disease states. Though a molecule may appear to hold significant promise in the pre-clinical phase, we have often witnessed the unique ability of the human body to react to various treatments. Often an unwanted side effect can torpedo a treatment, thus relegating millions of dollars of research obsolete. However, if a promising molecule is brought to market, the payoff is often well worth the effort. Our goal is to sift through the various clinical data to unearth the most promising treatments with the understanding that nothing is assured until the FDA authorizes the product for marketing in the US. We believe we have identified a promising junior biotech in the rare drug field with a promising treatment for sickle-cell anemia. Sep 21, 2017
The Asset Sales at Teva Have Begun
Image Source: Teva. We continue to watch the implosion of Teva with some interest; the company was once a Best Ideas Newsletter portfolio idea thanks to its strong ability to generate a copious amount of free cash flow. However, Teva made the classic mistake of purchasing a company that operates in a highly-commoditized industry at a market top while loading up the balance sheet with an enormous amount of debt at the precise time the favorable industry dynamics began transitioning to a headwind. Let’s review the company’s progress for signs of a turnaround.
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