Despite struggles to launch new products, rising geopolitical pressure, and increased competition, this company is making the necessary investments to address the challenges it faces.
Companies with long histories of profit losses often attempt to sell investors on their plans to “reach scale.” But, what happens when a company reaches scale and profits remain elusive? Profitless since going public, Cornerstone OnDemand (CSOD) lands in the Danger Zone this week.
Thesis: Management can boost the market value of ORCL in the amounts provided by aligning the firm’s strategy and performance compensation with real cash flows or what we call return on invested capital.
As hacks or data breaches seem to occur almost daily, the cyber security sector is receiving significant attention across the globe. When we focus on fundamentals and cut through the “sector theme” noise, we find some weak links in the cyber security industry. This week's Danger Zone is one of those weak links.
The Information Technology sector ranks second out of the ten sectors as detailed in our 4Q15 Sector Ratings for ETFs and Mutual Funds report. Last quarter, the Information Technology sector ranked second as well. It gets our Neutral rating.
Our Most Attractive Stocks (-1.9%) underperformed the S&P 500 (+0.8%) last month. Our Most Dangerous Stocks (-4.3%) outperformed the S&P 500 (-0.8%) last month.
The All Cap Blend style ranks third out of the 12 fund styles as detailed in our 3Q15 Style Ratings for ETFs and Mutual Funds report. It gets our Neutral rating.
It feels as if the longer interest rates remain depressed, the crazier company valuations become. As investors scramble to find returns in this stretched market, some are turning to IPOs, private equity, and other risky, often speculative investments. This makes finding quality stocks even harder.
In my most recent article, I said that modest growth over the next 15 years makes Intel worth ~$41 share today, and this earnings report strengthens my belief in that fair value estimate.