We've been noticing lots of wedge up formations in financial services, particular regional banks and technology service providers to those banks. Is this the trade to make in 2016? We will be closely monitoring these sectors and specific names.
Disclosure: Logos LP has no position in any of the stocks mentioned.
If I were to ask you to name me a company growing earnings at 500% year-over-year, return on invested capital at +16%, EPS growth quarter-over-quarter of +33% and ROE at +25%, which company would you choose?
I previously posed a similar question with impressive metrics in a previous article seen here, and the answer to this question was none other than good ol’ boring Unilever (NYSE:UL). In this case, many of you might guess a high flying technology company or biopharmaceutical company but the owner of these impressive metrics is none other than Herman Miller Inc. (NASDAQ: MLHR): a global provider of office furniture and fixtures for educational, commercial and healthcare providers.
To continue reading please visit Seeking Alpha.
Disclosure: Logos LP has no position in MLHR.
Global Brass and Copper Holdings (NYSE:BRSS) is a global supplier, distributor and fabricator of copper and brass products, including a range of sheet, strip, foil, rod, tube and fabricated metal component products. The company should be seen as a short-term trade: investing in commodity-linked businesses with narrow margins and moats is not the kind of investment I like to see overall. However, there are some interesting catalysts, metrics and technical indicators which make BRSS a short-term buy.
BRSS has been a small-cap market darling for some time and with good reason. Overall, the main argument for going long on BRSS is not betting on the rise in copper (which, if that were the case, would certainly propel the stock), but rather focusing on its ability to manage working capital above and beyond its competitors or any other industry.
To continue reading please visit Seeking Alpha.
Disclosure: Logos LP has no position in BRSS.
Manhattan Associates (NASDAQ: MANH) is a mid-cap provider of supply-chain, Omni-channel and inventory software to wholesalers, manufacturers and logistics providers worldwide. As stated in the company’s tear sheet, the company supply-chain solutions have been “architected to eliminate silos between warehousing and transportation” while its Omni-channel and inventory solutions allow organizations to “provide the infrastructure retailers need” and “manage forecasting, budgeting and planning”. The company has had an incredible run over the last little while (up 82% YTD – Figure 1) and by all traditional metrics seems expensive (very high PE ratio, high price to book, high price to cash flow) but I believe there is still room to run for this stock.
To continue reading please visit Seeking Alpha.
Disclosure: Logos LP has no position in MANH.
GlaxoSmithKline PLC (NYSE: GSK) is a global pharmaceutical giant that is trading below intrinsic value. The company’s real focus is on scale and innovation – providing much of the world with the drugs and medications it needs while containing an expansive list of patent-protected drugs in late stage development. Over 59% of the company’s revenues is based on prescription drugs while vaccines and consumer drugs make up 16% and 25%, respectively. The company is forecasting mid-single digit growth for all groups with earnings from 2016-2020 to hit high single digit CAGR.
To continue reading please visit Seeking Alpha.
Disclosure: Logos LP has no position in GSK.
