Wednesday, September 6, 2017

Daqo New Energy: The Lowest-Cost Producers Will Survive


Government, financial institutions and banks have boosted the industry and demand
Falling costs throughout the supply chain are finally making solar energy feasible on a wide scale and I think DAQO is positioned to consolidate as the lowest-cost producer
DAQO believes silicon-based cells will remain the most widely used solar photovoltaic cells in the near future. If you agree, BUY DAQO
If you believe solar energy will be wildly adopted, BUY DAQO
I recommend buying DQ for a target price of $60.00 USD/share, offering a 130% upside from current levels

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Thursday, June 1, 2017

Sypris Solutions: The Vehicle To Play The Trump Card


Sypris Solutions is in the three industries that will benefit from Trump's agenda: defense, O&G and trucks.
Management is fulfilling its cost reduction promises and increasing revenues.
The stock is currently trading at an EV/EBITDA of 3.1x and P/B of 1.2x, compared to the industry average of 12.6x-13.0x and 3.1x-4.0x respectively.
If you believe Trump will remain president and will be able to push his agenda, Sypris would be a high beta way to bet on that.
Based on a conservative DCF, I recommend buying the stock with a target price of $2.50/share.

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Wednesday, April 26, 2017

NYX: 2017 May Be The Year Of The Catalyst


4Q16 results positive with revenue growth and margin improvements as expected.
Impairments of 94m surprisingly high but due to management decisions of migrating customers to a better platform.
Listing on the TSX in the second semestre of 2017 may be the catalyst and improved liquidity needed.
A guidance for 1Q17 was provided, while revenues fall within my expectations, EBITDA margins fall short of my expectations.
I recommend buying CVE:NYX with a target price of CAD 4.70/sh and OTC:NXXY with a target price of USD 3.45/sh.

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Wednesday, April 12, 2017

MarketAxess: Credit Trading Needs To Be Disrupted



Great company with double-digit returns and a clear moat.
Opportunity for capital structure enhancement as it has no debt.
Its market share gain from 1% to 16.5% is the best proof of its solution. However, I think the market is not pricing all the potential.
I recommend to buy MKTX at the current price of $180.80 with a 12-24 month target price of $220 offering a 21% upside.

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Monday, March 13, 2017

Tecnoglass: The Undiscovered Colombian Gem Offering A 94% Upside Potential


4Q16 results better than expected. Revenues and EBITDA both grew 26%, positive net income, lower financing cost and backlog increased 6%.
Two accretive acquisitions in line with its vertical integration strategy.
I recommend buying TGLS with a target price of $21.00 offering a 94% upside from the current price of $10.86.

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Tuesday, February 28, 2017

Seadrill And The Pirates Of The Sea


The stock is overly punished as current market conditions are extrapolated into the future.
Market is being pessimistic about obtaining a contract for the West Capella.
The discount of semisubs to drillships has expanded beyond what's reasonable.
I recommend SDLP with a target price of $10.00/sh, a double-your-money opportunity. My stop loss would be at $2.75 (a 55% downside).

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Wednesday, February 8, 2017

NYX Gaming: An Asymmetric Risk/Reward Opportunity


Asymmetric risk/reward profile. 300% upside ($3.45/sh) versus a 49% downside ($0.44/sh).
Interesting part of its life cycle, 95% of its revenues are recurring, strong market position, and new management. Time to monetize revenues.
Industry projected to grow at 9-10.5% in the next couple of years depending on how regulation is shaped.

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Why I Believe Highpower International Revenues Should Surprise In The Coming Year

Electric vehicles and smartphones should keep the demand for lithium batteries high for the next 15 years. Lithium and cobalt prices a...