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Facebook

2/27/2017

I can't imagine another brand as well known as Facebook throughout the world, with the possible exception of maybe Coca-Cola. I also can't imagine a company more dominant than Facebook with the possible exception of Amazon. Practically everyone in the world uses Facebook, Instagram, WhatsApp or Messenger, so to write an article on Facebook is rather presumptuous and almost a waste of time. But here it goes because Facebook is far from over. In fact it may just be getting started.

Facebook, Inc. provides various products to connect and share through mobile devices, personal computers, and other surfaces worldwide. Its solutions include Facebook Website and mobile application that enables people to connect, share, discover, and communicate each other on mobile devices and personal computers; Instagram, a mobile application that enables people to take photos or videos, customize them with filter effects, and share them with friends and followers in a photo feed or send them directly to friends; Messenger, a messaging application to communicate with people and businesses across platforms and devices; and WhatsApp Messenger, a mobile messaging application. The company also offers Oculus virtual reality technology and content platform, which allow people to enter an immersive and interactive environment to play games, consume content, and connect with others. As of December 31, 2016, it had approximately 1.23 billion daily active users. Facebook, Inc. was founded in 2004 and is headquartered in Menlo Park, California.
(Summary) (Company) (Chart)

22 February 2017
Price $136.12
1yr Target $159.72
Analysts 43
Dividend ---
Payout Ratio ---

1yr Cap Gain 17.33%
Yield ---
1yr Tot Return 17.33%

P/E 39.18
PEG 1.67
Beta 0.69

EPS (ttm) $3.47
EPS next yr $6.69
Forward P/E 20.34
EPS next 5yr 23.50%
1yr Price Support $157.21

Market Cap $394.30 Bil
Revenues $27.64 Bil
Earnings $10.19 Bil
Profit Margin 36.86%

Quick Ratio 12.00
Current Ratio 12.00
Debt/Equity 0.00

1yr RevGR 54.16%
3yr RevGR 51.13%
4yr RevGR 52.65%

1yr EarnGR 170.54%
3yr EarnGR 78.78%
4yr EarnGR 332.22%

1yr DivGR ---
3yr DivGR ---
5yr DivGR ---

ROA 17.50%
ROE 19.30%

Business Operations

Facebook's overall mission is to give the world the power to share their lives and make the world more open and connected.

The company's top priority is to build useful and engaging products that enable people to connect and share through mobile devices and personal computers. They also help people discover and learn about what is going on in the world around them, enable people to share their opinions, ideas, photos and videos, and other activities with audiences ranging from their closest friends to the public at large, and stay connected everywhere by accessing our products, including:

Facebook. Facebook is a mobile application and website that enables people to connect, share, discover, and communicate with each other on mobile devices and personal computers. The company had 1.04 billion daily active users (DAUs) on average in December 2015, an increase of 17% compared to December 2014. They had 934 million DAUs who accessed Facebook from a mobile device on average in December 2015, an increase of 25% compared to December 2014. There are a number of different ways to engage with people on Facebook, the most important of which is News Feed which displays an algorithmically-ranked series of stories and advertisements individualized for each person.
Instagram. Instagram is a mobile application that enables people to take photos or videos, customize them with filter effects, and share them with friends and followers in a photo feed or send them directly to friends.
Messenger. Messenger is a messaging application available for mobile and web on a variety of platforms and devices. Messenger enables people to reach others instantly and simply, and also enables businesses to engage with customers seamlessly and securely.
WhatsApp. WhatsApp Messenger is a fast, simple and reliable mobile messaging application that is used by people around the world and is available on a variety of mobile platforms.
Oculus. The Oculus virtual reality technology and content platform power products that allow people to enter a completely immersive and interactive environment to play games, consume content, and connect with others.

Facebook generates substantially all of their revenue from selling advertising placements to marketers. The company's ads let marketers reach people based on a variety of factors including age, gender, location, interests, and behaviors. Marketers purchase ads that can appear in multiple places including on Facebook, Instagram, and third-party applications and websites.

Competition

Facebook's business is characterized by innovation, rapid change, and disruptive technologies. The company faces significant competition in every aspect of their business, including from companies that provide tools to facilitate communications and the sharing of information, companies that enable marketers to display advertising, and companies that provide development platforms for application developers. Facebook competes to attract, engage, and retain people who use their products, to attract and retain marketers, and to attract and retain developers to build compelling mobile and web applications that integrate with the company's products.

Facebook competes with the following:

Companies that offer products that replicate the full range of capabilities we provide. For example, Google has integrated social functionality into a number of its products, including search and Android, as well as other, largely regional, social networks that have strong positions in particular countries.
Companies that develop applications, particularly mobile applications, that provide social or other communications functionality, such as messaging, photo- and video-sharing, and micro-blogging.
Companies that provide web- and mobile-based information and entertainment products and services that are designed to engage people and capture time spent on mobile devices and online.
Traditional, online, and mobile businesses that provide media for marketers to reach their audiences and/or develop tools and systems for managing and optimizing advertising campaigns.

As Facebook introduces or acquires new products, as the company's existing products evolve, or as other companies introduce new products and services, Facebook may become subject to additional competition.

Technology

Facebook's product development philosophy is centered on continuous innovation in creating and improving products that are social by design, which means that the products are designed to place people and their social interactions at the core of the product experience. As the company's user base grows and the level of engagement from the people who use their products continues to increase, including on mobile devices, the company's computing needs continue to expand. Facebook makes significant investments in technology both to improve their existing products and services and to develop new ones, as well as for the company's marketers and developers.

Facebook is also investing in a number of longer-term initiatives, such as connectivity efforts, artificial intelligence research, and virtual reality, to develop technologies that they believe will help the company better serve their communities and pursue their mission to make the world more open and connected.

Sales and Operations

The majority of the company's marketers use Facebook's self-service ad platform to establish accounts and to launch and manage their advertising campaigns. The company also has a global sales force that's focused on attracting and retaining marketers and providing support to them throughout the stages of the advertising campaign cycle from pre-purchase decision-making to real-time optimizations to post-campaign analytics. Facebook works directly with marketers, through traditional advertising agencies, and with an ecosystem of specialized agencies and partners. They currently operate five support offices and more than 35 sales offices around the globe.

Facebook owns and leases data centers in various locations throughout the United States, and also owns a data center facility in Sweden.

Marketing

The company's communities have grown organically with people inviting their friends to connect with them, supported by internal efforts to stimulate awareness and interest. In addition, Facebook has invested and will continue to invest in marketing products and services to build their brand, grow their user base, and increase engagement around the world. The company leverages the utility of their products and social distribution channels as their most effective marketing tools.

Intellectual Property

To establish and protect the company's proprietary rights, Facebook relies on a combination of patents, patent applications, trademarks, copyrights, trade secrets, including know-how, license agreements, confidentiality procedures, non-disclosure agreements with third parties, employee disclosure and invention assignment agreements, and other contractual rights. In addition, to further protect our proprietary rights, from time to time the company has purchased patents and patent applications from third parties.

My Path Forward

Recently Facebook announced that they had developed a SnapChat like feature that they're going to add to the WhatsApp application in direct competition with SnapChat. They're also announcing that they're going to stream a Major League Baseball game of the week this summer in direct competition with Twitter which streamed NFL and College Football games last fall. And I think they'll be successful.

All this just puts more eyeballs on their site for longer periods of times. This will provide Facebook the ability to subject it's customers with additional advertisements creating additional revenue for Facebook and its shareholders.

I feel that Facebook is a juggernaut in the social network space and it's so entrenched now with its billions of viewers that I believe it's not unstoppable. So not owning it is really not an option for me at this time. In actuality I've been in an out of this stock and looking back I probably should have just stayed in the stock. With support around $120 per share, the current price of $136 is a little bit of a reach for me. I'd rather buy these shares below $130. At that price, the stock would produce an estimated 20% total return on my investment. And that's a nice return.

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Mobileye

2/23/2017

1 Comment

Mobileye is an Israeli technology company that develops vision-based advanced driver assistance systems (ADAS) providing warnings for collision prevention and mitigation. Mobileye N.V. headquarters and main R&D centre is located in Jerusalem, Israel, operating under the company name Mobileye Vision Technology Ltd. The company has also sales and marketing offices in Jericho, New York; Shanghai, China; Tokyo, Japan and Düsseldorf, Germany.

Mobileye N.V., together with its subsidiaries, develops computer vision and machine learning, data analysis, and localization and mapping for advanced driver assistance systems and autonomous driving technologies primarily in Israel. It operates through two segments, Original Equipment Manufacturing and After Market. The company offers Roadbook, a localized drivable paths and visual landmarks using its proprietary REM technology through crowd sourcing; and proprietary software algorithms and EyeQ chips that perform detailed interpretations of the visual field to anticipate possible collisions with other vehicles, pedestrians, cyclists, animals, debris, and other obstacles. Its products also detect roadway markings, such as lanes and road boundaries, as well as barriers and related items; and identify and read traffic signs, directional signs, and traffic lights. In addition, the company provides enhanced cruise control, pre-lighting of brake lights, and Bluetooth connectivity, as well as related smartphone application. It serves original equipment manufacturers, tier 1 system integrators, fleets and fleet management systems providers, insurance companies, leasing companies, and others through distributors and resellers. Mobileye N.V. was founded in 1999 and is headquartered in Jerusalem, Israel.
(Summary) (Company) (Chart)

20 February 2017
Price $45.65
1yr Target $55.50
Analysts 20
Dividend $---
Payout Ratio ---

1yr Cap Gain 21.57%
Yield ---
1yr Tot Return 21.57%

P/E 114.70
PEG 2.35
Beta ---

EPS (ttm) $0.40
EPS next yr $1.04
Forward P/E 43.94
EPS next 5yr 48.75%
1yr Price Support $50.70

Market Cap $9.86 Bil
Revenues $325.40 Mil
Earnings $94.60 Mil
Profit Margin 29.07%

Quick Ratio 6.60
Current Ratio 7.50
Debt/Equity 0.00

1yr RevGR ---
3yr RevGR ---
5yr RevGR ---

1yr EarnGR ---
3yr EarnGR ---
5yr EarnGR ---

1yr DivGR ---
3yr DivGR ---
5yr DivGR ---

ROA 14.60%
ROE 16.40%

Mobileye Weekly Chart

Background

Mobileye N.V. was founded in 1999 by Amnon Shashua, when he evolved his academic research into a technical solution for a vision system which could detect vehicles using only a camera and software algorithms. Together with Ziv Aviram, he set up the company's R&D headquarters in Israel. At first the company developed algorithms, and a processor chip called the EyeQ chip which runs all the proprietary image processing algorithms. After years of testing, the chip and software algorithms began shipping to OEMs (original equipment manufacturers). The company’s first clients were automotive manufacturers (BMW, GM and Volvo) whose electronics suppliers integrated Mobileye’s technologies into their cars.

In 2006 Mobileye set up an Aftermarket department, which sells finished products manufactured by Mobileye at their Philippines factory, IMI. The Aftermarket products are sold to an international network of distributors on all continents who sell the products to fleets of trucks and buses, to car dealerships, and to car accessory shops.

In August 2015 Tesla Motors announced it was using Mobileye's technology to enable a self-drive solution in the Model S Tesla. After the first deadly crash of a self-driving Model S with active Autopilot became public in June 2016, Mobileye acknowledged that its technology won't be able to recognize a crossing trailer (which was the cause of the accident) until 2018. In July 2016, Tesla announced the end of its partnership with Mobileye.

In January 2017, Mobileye, BMW and Intel announced began developing autonomous vehicles that would be on the road in the second half of 2017. The companies also plans to develop autonomous vehicles for the consumer market by 2021.

My Path Forward

This company doesn't pay a dividend so Dividend Growth Investors can stop reading this article at this point and switch back to investing in the Dividend Aristocrats. But if you're interested in the future of Augmented or Driverless Automobiles, you might want to spend more time investigating this company. While it's been around for quite a few years, it hasn't been public very long. And since it's based in Israel, there's less information available than I would like.

My plan is to trade this stock rather than to simply buy and hold the shares. My reasoning is that I won't have the funds to purchase enough shares to sell options for awhile (I have so many other investing ideas I'm working on) so swing trading partial lots is my only avenue of approach on these shares. In time when I do build up enough shares I intend to approach these shares as I would any other company - start small and sell options for additional purchases.

I don't see anyway for me to avoid entering into a position on this company simply because of my interest in this area. I believe this area will explode over the next few years as drivers demand the safety aspects of driverless or driver assisted vehicles (similar to the invention of seat belts and air bags). At this point there's plenty of room for competition to survive but eventually there will be consolidation in the industry.

As stated in some of the videos above there's a multi-faceted approach to this industry but the ramifications are wide spread. This combination of machine visualization, detailed GPS and mapping, and the vast data mining and deep learning occurring on the processor will eventually spread over into other sectors and industries. And there's billions and billions of dollars to be made. That's why I'm interested.

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Walgreens Boots Alliance

2/21/2017

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It's getting harder and harder to find a great dividend stock that has both great fundamentals and technically a great price. The markets have just moved too high too fast. But if you look close enough and long enough, you can always find that special case that's both fundamentally sound and somewhat technically inexpensive. Today I came across one of those companies -- Walgreens Boots Alliance.

A quick look at the chart and you'll wish you bought the stock two weeks ago when the price was closer to $81 rather than the current price of nearly $86. But look at the estimates below and it's obvious that there's still more to be gained over the next year. That's not necessarily true for many of the other great dividend stocks. Below you'll find the fundamentals and links to the shares technical charts.

Walgreens Boots Alliance, Inc. operates as a pharmacy-led health and wellbeing company. It operates through three segments: Retail Pharmacy USA, Retail Pharmacy International, and Pharmaceutical Wholesale. The Retail Pharmacy USA segment sells prescription drugs and an assortment of general merchandise, including non-prescription drugs, beauty products, photo finishing, seasonal merchandise, greeting cards, and convenience foods through its retail drugstores and convenient care clinics. It also provides specialty pharmacy services; and manages in-store clinics. As of August 31, 2016, this segment operated 8,175 retail stores under the Walgreens and Duane Reade brands in the United States; and 7 specialty pharmacies, as well as approximately 400 in-store clinic locations. The Retail Pharmacy International segment sells prescription drugs; and health, beauty, toiletry, and other consumer products through its pharmacy-led health and beauty stores, as well as through boots.com. It is also involved in optical practice and related contract manufacturing operations. This segment operated 4,673 retail stores under the Boots, Benavides, and Ahumada in the United Kingdom, Thailand, Norway, the Republic of Ireland, the Netherlands, Mexico, and Chile; and 636 optical practices. The Pharmaceutical Wholesale segment engages in the wholesale and distribution of specialty and generic pharmaceuticals, health and beauty products, and home healthcare supplies and equipment, as well as provides related services to pharmacies and other healthcare providers. This segment operates in France, the United Kingdom, Germany, Turkey, Spain, the Netherlands, Egypt, Norway, Romania, the Czech Republic, and Lithuania. Walgreens Boots Alliance, Inc. was founded in 1901 and is based in Deerfield, Illinois.
(Summary) (Company) (Chart)

20 February 2017
Price $85.86
1yr Target $94.52
Analysts 20
Dividend $1.50
Payout Ratio 39.68%

1yr Cap Gain 10.08%
Yield 1.74%
1yr Tot Return 11.82%

P/E 22.70
PEG 1.80
Beta 1.25

EPS (ttm) $3.78
EPS next yr $5.52
Forward P/E 15.55
EPS next 5yr 12.60%
1yr Price Support $69.55

Market Cap $92.45 Bil
Revenues $116.82 Bil
Earnings $4.12 Bil
Profit Margin 3.52%

Quick Ratio 0.90
Current Ratio 1.50
Debt/Equity 0.64

1yr RevGR 13.44%
3yr RevGR 17.37%
5yr RevGR 10.20%

1yr EarnGR -4.50%
3yr EarnGR 12.54%
5yr EarnGR 5.37%

1yr DivGR 6.04%
3yr DivGR ---
5yr DivGR ---

ROA 5.90%
ROE 13.80%

The Path Going Forward

While WBA has a short dividend history, Walgreens had a long history of increasing its dividend over at least the last 25 years as it's on the list of Dividend Aristocrats. That recognition alone makes it a preferred choice for Dividend Growth Investors. For me it's a matter of finding dividend growth stocks that are currently priced relatively low enough that the total estimated annual return makes sense. That's not an easy thing to do in a market that's moved up so much recently.

I intend to add shares of WBA to my portfolio over the next few weeks as long as the stock stays at or below its current price. A price any higher and this transaction becomes harder to do. Any move lower makes any transaction a lot more desirable. In addition, this stock has a beta of 1.25 which may allow the stock to pullback just enough to make this transaction desirable and a lot more profitable.

As a Dividend Aristocrat, buying and holding shares of this company, along with dividend reinvestment, could easily make this company a significant core holding in my portfolio.

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Celgene

2/13/2017

1 Comment

This just may be a great time to begin accumulating shares of Celgene Corporation. This company has been in an overall uptrend for the last fifteen years and technicians are seeing something that may be signaling that the shares are about to move higher. Shares rose from 2003 thru 2007 before hitting resistance near $40 per share. At that point the stock moved sideways for the next six years as it struggled to break above that $40 resistance.

In 2013 the stock broke out again and moved higher. As it approached $130 per share the stock once again hit resistance and pulled back. It has now been moving sideways for two years and is approaching a technical uptrend line (see below). You can almost see a pennant forming forcing the shares more and more toward $130.

From a purely technical view, as these shares move higher thru the $130 per share level, the shares could see a significant move higher. Shares could easily double within a year of the breakout and triple over a couple of years.

And that would be an incredible move!

Celgene Corporation Monthly Chart

Celgene Corporation discovers, develops, and commercializes therapies to treat cancer and inflammatory diseases worldwide. It markets REVLIMID, an oral immunomodulatory drug for multiple myeloma, myelodysplastic syndromes (MDS), and mantle cell lymphoma; ABRAXANE, a solvent-free chemotherapy product to treat breast, non-small cell lung, pancreatic, and gastric cancers; POMALYST/IMNOVID to treat multiple myeloma; and OTEZLA, a small-molecule inhibitor of phosphodiesterase 4 for psoriatic arthritis, psoriasis, ankylosing spondylitis, Behcet's disease, atopic dermatitis, and ulcerative colitis. The company's products also include VIDAZA, a pyrimidine nucleoside analog to treat intermediate-2 and high-risk MDS, and chronic myelomonocytic leukemia, as well as acute myeloid leukemia (AML); THALOMID for the patients with multiple myeloma and erythema nodosum leprosum; ISTODAX to treat cutaneous and peripheral T-cell lymphoma; and FOCALIN, FOCALIN XR, and RITALIN products. Its clinical stage products include OTEZLA for the treatment of various immune-inflammatory diseases; sotatercept for the treatment of renal anemia, beta-thalassemia and MDS; luspatercept for beta-thalassemia and MDS; CC-486 to treat MDS, AML, and solid tumors; CC-122 and CC-220 to treat hematological and solid tumor cancers, and inflammation and immunology diseases; PDA-002 for the treat diabetic foot ulcers and peripheral neuropathy; and PNK-007 for hematological malignancies treatment. The company has collaborative agreements with Novartis Pharma AG; Acceleron Pharma; Agios Pharmaceuticals, Inc.; Epizyme Inc.; Sutro Biopharma, Inc.; bluebird bio, Inc.; FORMA Therapeutics Holdings, LLC; Acetylon Pharmaceuticals, Inc.; OncoMed Pharmaceuticals, Inc.; NantBioScience, Inc.; AstraZeneca PLC; Lycera Corp.; Juno Therapeutics, Inc.; TriNetX, Inc.; Triphase Accelerator Corporation; Nurix Inc.; Abbott; Sage Bionetworks; and PharmAkea Inc. The company was founded in 1980 and is headquartered in Summit, New Jersey.
(Summary) (Company) (Chart)

11 February 2016
Price $115.61
1yr Target $141.22
Analysts 23
Dividend ---
Payout Ratio ---

1yr Cap Gain 22.15%
Yield ---
1yr Tot Return 22.15%

P/E 46.50
PEG 2.07
Beta 1.79

EPS (ttm) $2.49
EPS next yr $8.71
Forward P/E 13.28
EPS next 5yr 22.44%
1yr Price Support $195.45

Market Cap $89.54 Bil
Revenues $11.23 Bil
Earnings $2.00 Bil
Profit Margin 17.80%

Quick Ratio ---
Current Ratio ---
Debt/Equity ---

1yr RevGR 21.31%
3yr RevGR 19.81%
5yr RevGR 18.32%

1yr EarnGR 28.35%
3yr EarnGR 13.86%
5yr EarnGR 11.80%

1yr DivGR ---
3yr DivGR ---
5yr DivGR ---

ROA ---
ROE ---

1 Comment

Ambarella

2/8/2017

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Ambarella is the system on a chip that made GoPro the sensation that it was. It allowed for High Definition video capture that captured the attention of everyday sports enthusiasts. And as GoPro sold millions of units so did Ambarella sell millions of chips. Today Ambarella is much more than GoPro as it expands it's market for video chips.

Today the company's chips can be found in Security Systems, Automotive Cameras, Flying Cameras, Sports and Virtual Reality Cameras, Wearable Cameras, and Broadcast Infrastructure Solutions. Tomorrow the video chips may be found on systems that haven't even been invented yet. The world looks broad and vast for Ambarella.

Ambarella Monthly Chart

Ambarella, Inc. develops semiconductor processing solutions for video that enable high-definition (HD) video capture, sharing, and display worldwide. The company's system-on-a-chip designs integrated HD video processing, image processing, audio processing, and system functions onto a single chip for delivering video and image quality, differentiated functionality, and low power consumption. Its solutions enable the creation of video content for wearable sports cameras, automotive aftermarket cameras, and professional and consumer Internet Protocol (IP) security cameras, as well as cameras incorporated into unmanned aerial vehicles in the camera market; and manage IP video traffic, broadcast encoding and transcoding, and IP video delivery applications in the infrastructure market. The company sells its solutions to original design manufacturers and original equipment manufacturers through its direct sales force and logistics providers. Ambarella, Inc. was founded in 2004 and is headquartered in Santa Clara, California.
(Summary) (Company) (Chart)

5 February 2016
Price $51.58
1yr Target $71.67
Analysts 9
Dividend ---
Payout Ratio ---

1yr Cap Gain 38.94%
Yield ---
1yr Tot Return 38.94%

P/E 39.80
PEG 2.44
Beta 1.45

EPS (ttm) $1.30
EPS next yr $2.86
Forward P/E 18.03
EPS next 5yr 16.33%
1yr Price Support $46.70

Market Cap $1.71 Bil
Revenues $290.80 Mil
Earnings $44.60 Mil
Profit Margin 15.33%

Quick Ratio 7.00
Current Ratio 7.40
Debt/Equity 0.00

1yr RevGR 44.94%
3yr RevGR 37.29%
5yr RevGR ---

1yr EarnGR 44.58%
3yr EarnGR 55.13%
5yr EarnGR %

1yr DivGR ---
3yr DivGR ---
5yr DivGR ---

ROA 10.20%
ROE 11.70%

Business Overview

Ambarella is the leading developer of semiconductor processing solutions for video that enable high-definition, or HD, video capture, sharing and display. A device that captures video includes four primary components: a lens, an image sensor, a video processor and storage memory. The video processor is the most complex of these four primary components as it converts raw video input into a format that can be stored and distributed efficiently. Ambarella combines their processor design capabilities with their expertise in video and image processing, algorithms and software to provide a technology platform that is designed to be easily scalable across multiple applications in a variety of markets and enable rapid and efficient product development. The company's system-on-a-chip, or SoC, fully integrates HD video processing, image processing, audio processing and system functions onto a single chip, delivering exceptional video and image quality at high compression rates, differentiated functionality and low power consumption.

The inherent flexibility of this technology enables the company to deliver solutions for numerous applications in multiple markets. In the camera market, their platform enables the creation of high-quality video content in wearable cameras, automotive aftermarket cameras, professional and consumer Internet Protocol, or IP, security cameras, and cameras incorporated into unmanned aerial vehicles, also referred to as UAVs, drones or flying cameras. Their revenue growth over the last three years has been driven primarily by specialized video and image capture devices such as wearable sports cameras, automotive aftermarket cameras and IP security cameras. In the infrastructure market, their solutions efficiently manage IP video traffic, broadcast encoding and transcoding and IP video delivery applications.

Ambarella initially focused their technology platform on the infrastructure market, where they were able to differentiate solutions for broadcast customers based on high performance, low power consumption, transmission and storage efficiency and small form factor. Leveraging these same capabilities, they then designed high-performance solutions for the camera market. As a result of the advantages of these solutions, the company became a leading provider of video processing solutions for cameras that capture both HD video and high-resolution still images simultaneously. In addition, they have released SoC solutions that combine high-resolution video and image capture capabilities with advanced networking, connectivity and application processing functionalities.

Ambarella sells their solutions to leading original design manufacturers, or ODMs, and original equipment manufacturers, or OEMs, globally. In the camera market, the company's video processing solutions are designed into products from leading OEMs including Axis Communications AB, Carcam Electronics Technology Co., Ltd., Dahua Technology Co., Ltd., Dajiang Innovation Technology Inc., Garmin Ltd., GoPro Inc., Hikvision Digital Technology Co., Qihoo 360 Technology Co. Ltd., Robert Bosch GmbH and affiliated entities, and XiaoYi Technology Co., Ltd., who source Ambarella's solutions from ODMs including Asia Optical Co. Inc., Chicony Electronics Co., Ltd., Jabil Circuit, Inc., San Jet Technology Corp., Sercomm Corporation, and Sky Light Digital Ltd. In the infrastructure market, the company's solutions are designed into products from leading OEMs including Harmonic Inc., Motorola Mobility, Inc. (owned by Arris Group, Inc.) and Telefonaktiebolaget LM Ericsson, who source Ambarella's solutions from leading ODMs such as Plexus Corp. The company intends to continue to build and strengthen their relationships with existing customers and also diversify their customer base.

Ambarella employs a fabless manufacturing strategy and is currently shipping the majority of their solutions in the 45, 32 and 28 nanometer process nodes. As of January 31, 2016, the company had 640 employees worldwide, approximately 72% of whom are in research and development.

For our fiscal years ended January 31, 2016, 2015 and 2014, Ambarella recorded revenue of $316.4 million, $218.3 million and $157.6 million, respectively, and net income of $76.5 million, $50.6 million and $25.7 million, respectively. The company has generated net income in each quarter beginning with the first quarter of fiscal year 2010, and they have generated cash from operations in each of fiscal years starting from 2009.

Future Trends

Video traffic is growing at a significant rate. The market trends that are fundamentally impacting video content creation and distribution include the following:

Increasing Number of Video Capture Devices . Traditionally, HD video has been captured using large, power intensive and expensive dedicated devices. Recent improvements in HD video capture quality, device size and cost have allowed video capture functionality to be incorporated into a broad range of devices. Today, smartphones, tablets, wearable cameras, automotive aftermarket cameras, IP security cameras and UAVs, are increasingly including both HD video capture and high-quality still image capture. In addition to the significant growth in the number of devices, new applications are emerging for video capture devices. Very small HD cameras, or wearable cameras, incorporating connectivity to a smart phone or internet are being developed for new applications such as law enforcement, personal security and social media. In some regions of the world, such as China, Russia, South Korea and Taiwan, video capture devices are being added as aftermarket accessories to automobiles and connected to on- board recording systems to capture video in the event of an incident, which assists the legal and insurance claims process following an accident.
Growing User-Generated Content . Historically, most video content was created by media companies, professional studios and large broadcasters that possessed the equipment, expertise and other resources necessary to produce and distribute such programming. However, with the proliferation of low-cost digital video devices and greater penetration of broadband connectivity, individuals are playing a greater role in content creation and distribution. Websites such as YouTube and Facebook have enabled an effective new channel to widely distribute, store and display video and other rich media. In addition to user-created videos, other user-generated content such as video conferencing and video instant messaging through services provided by Apple, Inc., Google Inc. and Skype, among others, are becoming increasingly popular.
Broadband Penetration Enabling the Proliferation of the Video Cloud . The adoption of high-speed broadband and the proliferation of connected devices such as smartphones, tablets, laptops, desktop computers and connected televisions have allowed consumers to more easily download and share IP video accessed upon demand through the video cloud. The video cloud has led to new business models based on personal content such as streaming video provided by services like YouTube. Additionally, consumers are leveraging the video cloud for security by utilizing an IP camera and cloud infrastructure to watch live HD video streaming on any web connected device. This video cloud application has enabled expansion of the connected home to include intelligent IP surveillance systems that detect activity and then stream encrypted HD video through secure servers and alert end users.
Advancements in Display Technology . The increasing proliferation of HD displays in television and in mobile connected devices such as laptops, smartphones and tablets is accelerating HD video content growth. This trend highlights the new paradigm of escalating consumer expectations of video quality, such that video is comparable to high-resolution still images, which drove the transition from standard definition to HD, and will drive the transition to ultra high-definition, or UHD. UHD is commonly referred to as 4K video, which supports up to 4096x2160 pixels per frame, more than four times greater resolution than the current Full HD standard, which supports up to 1920x1080 pixels per frame.
Requirement for Efficient Video Compression . HD video is increasingly a requirement for consumer video cameras, IP security cameras and for the broadcast of television programs, whether via cable, satellite or IP networks. Uncompressed HD video requires massive amounts of digital data to represent it, necessitating the need for video compression technology to reduce da ta rates for storage or for transmission of video over networks with limited bandwidth. In broadcast television, an upgrade of networks from H.264 video compression technology to the new high efficiency video coding, or HEVC, video compression technology w ould support the transition of consumers to 4K video. In consumer cameras, the efficiency of the encoding has a significant impact on video quality, recording time and battery life. In IP security cameras, encoding efficiency is important for realizing the highest image quality possible over bandwidth-limited networks, and for minimizing the costs of cloud-based storage of video content. Additionally, the ability to actively adapt the encoding bit-rate based on changing network bandwidth availability provid es the highest possible video quality and enables network traffic management. As consumers increasingly view video on smartphones and tablets, in addition to traditional televisions and PCs, the ability to trans-rate video content in real time to the vario us resolutions and bit-rates supported by smartphones or tablets is essential.

Higher Definition and Higher Frame Rates . The demand for enhanced video resolution has been increasing in both the camera and infrastructure markets. Consumers expect video quality to be closer to high-resolution still images, which continues to drive the transition from standard definition to Full HD and beyond. Similarly, as new display technologies enable higher resolutions and higher frame rates, we believe consumer demand will drive the requirement for UHD or 4K video capture and transmission. In the market for wearable sports cameras, for example, resolution and frame rate have been the primary factor in consumers’ purchasing decisions. In the infrastructure market, consumer demand for viewing Full HD content has prompted broadcasters to seek high-performance solutions.
Ability to Capture High-Quality Still Images and Video . Historically, consumers have purchased devices that either provide high-quality image capture or record high-quality video. This was the result of consumer preference, as reasonably priced and sized devices would provide only one of those attributes. However, as a result of technological improvements, consumer devices that deliver both attributes have proliferated to the point that a pure video capture device or still image capture device is becoming uncommon. Increasingly, devices are able to simultaneously capture HD video and high-quality still images without adversely impacting the quality of either. We believe devices that can capture Full HD video while encoding a second mobile resolution video for uploading to the Internet or streaming over a Wi-Fi network will expand consumer demand for specialized video capture devices. Additionally advanced low-light processing including high dynamic range and high-ISO processing will continue to improve image quality even in challenging lighting conditions.
Connectivity . Integrated wireless capability using wireless links such as Bluetooth and Wi-Fi is becoming an increasingly prevalent feature across many classes of video capture devices. Consumers want to watch, control and capture real-time video using their smartphones as the remote control and viewer for wirelessly enabled wearable and sports cameras. Additionally, rather than storing images and video to local media and transferring to a computer later, consumers are demanding the ability to wirelessly transfer and share their video content to websites such as YouTube, Facebook and other online media albums. In video security applications, connectivity to cloud services allows users to monitor surveillance video in real-time on their smartphones or tablets. The storage of video in the cloud also provides protection against theft of the video content and enables users the capability to play back the stored video.
Ability to Deliver Feature-Rich Video . The addition of de-warping capability allows cameras to utilize a wide angle or “fish eye” lens to cover a wide viewing area. In security applications this capability can allow a single camera to replace multiple cameras and may also eliminate the need for mechanical pan-tilt-zoom in the cameras. In automotive markets, the ability to combine and display images captured by multiple cameras can allow the automotive camera recorder to capture and display images from the front, rear and sides of the car. Our wide dynamic range, or WDR, and high dynamic range, or HDR, processing capabilities provide greater dynamic range between the lightest and darkest areas of an image, permitting captured still images to reveal details that would otherwise be lost against a bright background. Our new hardware-accelerated three-dimensional image stabilization engine with rolling shutter correction enables stable video recording during high-motion conditions. In flying camera applications this potentially eliminates the need for a mechanical gimbal system.
Computer Vision. Computer vision represents the field of methods for acquiring, processing, analyzing, and understanding images and high- dimensional data from the real world in order to automate and integrate a wide range of processes. Computer vision is becoming increasingly important for the development of int elligent video cameras. In the IP security camera market, computer vision can be used for various functions including motion detection to trigger alarms, and the counting and tracking of people. The application of computer vision may be also be used to hel p control the video encoding process to reduce video bitrates and maximize network efficiency. In the automotive market, the application of computer vision for advanced driver assistance systems, or ADAS, is increasingly being used to help drivers. Automot ive analytics functions include lane detection warning system (LDWS) and forward collision warning (FCW). In general, powerful CPUs and dedicated computer vision hardware are required to support the advanced analytics algorithms in video cameras.
Transcoding . The ability to decode and simultaneously re-encode high-quality video streams in multiple formats, which is commonly referred to as transcoding, using dense, small form factor and power-efficient hardware is a critical requirement for content providers and the video cloud. Given the differing connection speeds and capacities in current communication networks, broadcasters must be able to deliver video to consumers at varying bit-rate and quality levels. Furthermore, the significant increase in the number and types of devices capable of displaying video, from HD televisions to smartphones, requires broadcasters and other distributors to have the capability to provide video content in multiple formats and source resolutions.

My Path Forward

Companies not paying a dividend usually don't end up on my radar and Ambarella hasn't paid a dividend yet. What put it on my radar was it's revenue and earnings increases. They are incredible. Then when sales of the GoPro stumbled in 2016 the stock fell from around $120 per share to nearly $40 per share. In late 2016 the company was "discovered" again and the stock was run up again but this time only to about $75 per share. Recently it's fallen again but I think the smart money will enter before it falls to $40 again. At $51 per share we may be close to seeing a bottom again. Or it may fall to support near $40 again. But personally I'm not taking that chance. I intend to start a small position here and add to that position on any pullback. I want to be a part of this company's future and entering here works for me. This will be a long term hold and a bet on the future of all of the industries that this company supports.

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Neenah Paper

2/6/2017

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Neenah is a fine paper and packaging company that has recently pulled back to a six month support level which offers an opportunity to accumulate these shares at a relatively low risk cost as long as proper stops are employed. Late last year the stock hit resistance several times near the $81 level before breaking through in mid November. Then after rising to near $90 per share the stock has been falling consistently back to support near $81 per share. The stock has now bounced off this level twice and Friday it headed higher once again (see chart below).

The company also increased its dividend last week informing me that management sees strength in the future of the company's fundamentals. I believe the analysts have this one wrong as they estimate little or no growth in the price of the stock. With earnings estimated at $4.51 next year and projecting a P/E ratio of 20, this could be a $90 stock.

Neenah Paper Daily Chart

Neenah Paper, Inc. produces and sells technical products, and fine paper and packaging products worldwide. The company’s Technical Products segment provides filtration media for transportation, water, and other filtration markets; saturated and unsaturated crepe and flat paper tapes to manufacturers; lightweight abrasive paper for waterproof and dry sanding; label and tag products to pressure sensitive coaters; latex saturated and coated papers; publishing and security papers; clean room papers, durable printing papers, release papers, and furniture backers. Its Fine Paper and Packaging segment manufactures and sells writing, text, cover, and specialty papers and envelopes used in corporate identity packages, advertising collateral, premium labels and packaging, and wide format applications; This segment also offers packaging and label papers for retail, cosmetics, spirits, and electronics end-use markets; and specialty paper products for enhanced image, such as translucent and art papers, papers for optical scanning, and other specialized applications. Neenah Paper, Inc. markets its products under the JET-PRO, SofStretch, KIMDURA, MUNISING LP, PREVAIL, NEENAH, GESSNER, varitess, CLASSIC, CLASSIC CREST, ESSE, ENVIRONMENT, CAPITOL BOND, ROYAL SUNDANCE, SOUTHWORTH, CRANE'S CREST, CRANE'S BOND, CRANE'S LETTRA, SO...SILK, PLIKE, STARDREAM, ASTROBRIGHTS, and TOUCHE trademarks. The company sells its products through authorized paper distributors, converters, retailers, specialty businesses, and direct sales. Neenah Paper, Inc. was founded in 2004 and is headquartered in Alpharetta, Georgia.
(Summary) (Company) (Chart)

Neenah Paper Monthly Chart

Neenah Paper Dividend History

1 January 2016
Price $82.65
1yr Target $82.75
Analysts 4
Dividend $1.48
Payout Ratio 36.00%

1yr Cap Gain 0.12%
Yield 1.79%
1yr Tot Return 1.91%

P/E 20.13
PEG 1.79
Beta 1.47

EPS (ttm) $4.11
EPS next yr $4.51
Forward P/E 18.33
EPS next 5yr 11.25%
1yr Price Support $50.73

Market Cap $1.38 Bil
Revenues $951.40 Mil
Earnings $69.90 Mil
Profit Margin 7.34%

Quick Ratio 1.10
Current Ratio 2.20
Debt/Equity 0.60

1yr RevGR 5.71%
3yr RevGR 3.11%
5yr RevGR 6.18%

1yr EarnGR -26.06%
3yr EarnGR 3.56%
5yr EarnGR -21.84%

1yr DivGR 13.88%
3yr DivGR 33.71%
5yr DivGR 24.57%

ROA 8.70%
ROE 20.10%

Neenah Paper (NP) declares a $0.37/share quarterly dividend which is a 12.1% increase from its prior dividend of $0.33. The forward yield is 1.8% and payable on March 2 for shareholders of record on Feb. 17. The ex-dividend date is Feb. 15.

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Nexstar Media Group

2/1/2017

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I'm always interested in media companies at all levels of the industry and Nexstar is one of the largest in ownership of local television stations. In just 20 years it has grown from a single station in Scranton, PA, to the largest portfolio of local broadcast television stations in the United States.

Nexstar Media Group is a telecommunications company with a portfolio of 171 TV stations located throughout the US. Most of the stations are affiliates with the four "major" U.S. television networks and located in small to medium-sized markets. In addition, it operates all of the stations owned by an affiliated company, Mission Broadcasting, under local marketing agreements.

Nexstar Media Group, Inc. operates as a television broadcasting and digital media company in the United States. It focuses on the acquisition, development, and operation of television stations and interactive community Websites in medium-sized markets. The company offers free over-the-air programming to television viewing audiences. It also provides sales, programming, and other services through various local service agreements to 25 television stations and 5 power television stations owned and/or operated by independent third parties. As of December 31, 2015, the company owned, operated, programmed, or provided sales and other services to 99 television stations in 61 markets in the states of Alabama, Arizona, Arkansas, California, Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maryland, Michigan, Missouri, Montana, Nevada, New York, Pennsylvania, Tennessee, Texas, Utah, Vermont, Virginia, West Virginia, and Wisconsin. The company's stations reach approximately 20.4 million viewers. Nexstar Broadcasting Group, Inc. was founded in 1996 and is headquartered in Irving, Texas.
(Summary) (Company) (Chart)

Nexstar Media Group Monthly Chart

Nexstar Media Group Dividend History

29 January 2016
Price $63.65
1yr Target $70.83
Analysts 6
Dividend $0.96
Payout Ratio 30.86%

1yr Cap Gain 11.28%
Yield 1.50%
1yr Tot Return 12.78%

P/E 20.48
PEG 3.15
Beta 2.22

EPS (ttm) $3.11
EPS next yr $3.81
Forward P/E 16.71
EPS next 5yr 6.50%
1yr Price Support $24.76

Market Cap $1.97 Bil
Revenues $1.04 Bil
Earnings $98.20 Mil
Profit Margin 9.42%

Quick Ratio 1.60
Current Ratio 1.60
Debt/Equity 15.51

1yr RevGR 41.98%
3yr RevGR 32.89%
5yr RevGR 23.39%

1yr EarnGR 19.80%
3yr EarnGR -25.65%
5yr EarnGR ---

1yr DivGR 25.00%
3yr DivGR 25.70%
4yr* DivGR 25.74%

ROA 4.60%
ROE 82.50%

Nexstar Broadcasting (NXST) declared a $0.30/share quarterly dividend which is a 25% increase from its prior dividend of $0.24. The forward yield is 1.9% and payable on Feb. 24 for shareholders of record Feb. 10. The ex-dividend date is Feb. 8.

Business Overview

Nexstar Media Group is a television broadcasting and digital media company focused exclusively on the acquisition, development and operation of television stations and interactive community websites in medium-sized markets in the United States.

As of December 31, 2015, the company owned, operated, programmed or provided sales and other services to 99 full power television stations, including those owned by Variable Interest Entities (VIE) with which they have local service agreements, in 61 markets in the states of Alabama, Arizona, Arkansas, California, Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maryland, Michigan, Missouri, Montana, Nevada, New York, Pennsylvania, Tennessee, Texas, Utah, Vermont, Virginia, West Virginia and Wisconsin. The stations are affiliates of ABC, NBC, FOX, CBS, The CW, MyNetworkTV and other broadcast television networks. The stations reach approximately 20.4 million viewers or 18.0% of all U.S. television households.

Nexstar Media concentrates on medium-sized markets because they believe those markets offer significant advantages over large-sized markets. First, because there are fewer well-capitalized acquirers with a medium-market focus, Nexstar has been successful in purchasing stations on more favorable terms than acquirers of large market stations. Second, in the majority of their markets only four to six local commercial television stations exist. As a result, the company achieves lower programming costs than stations in larger markets because the supply of quality programming exceeds the demand.

The stations Nexstar owns and operates or provides services to provide free over-the-air programming to their markets’ television viewing audiences. This programming includes (a) programs produced by networks with which the stations are affiliated; (b) programs that the stations produce; and (c) first-run and rerun syndicated programs that the stations acquire. The company's primary sources of revenue include the sale of commercial air time on the stations to local and national advertisers, revenues earned from the retransmission consent agreements with cable, satellite and other multichannel video programming distributors (“MVPDs”), and the sale of advertising on websites in each of the broadcast markets.

Nexstar seeks to grow their revenue and operating income by increasing the audience and revenue shares of the stations they own, operate, program or provide sales and other services to, as well as through the growing portfolio of digital products and services. The company also strives to increase the audience share of the stations by creating a strong local broadcasting presence based on highly rated local news, local sports coverage and active community sponsorship. The company seeks to improve revenue share by employing and supporting a high-quality local sales force that leverages the stations’ strong local brands and community presence with local advertisers. They further improve broadcast cash flow by maintaining strict control over operating and programming costs. The benefits achieved through these initiatives are magnified in their duopoly markets by broadcasting the programming of multiple networks, capitalizing on multiple sales forces and achieving an increased level of operational efficiency. As a result of the operational enhancements, Nexstar expects revenue from the stations acquired or providing services to in the last four years to grow faster than that of the company's more mature stations.

The digital media businesses provide digital publishing and content management platforms, a digital video advertising platform and other digital media solutions to media publishers and advertisers. Nexstar is focused on new technologies and growing their portfolio of digital products and services complementary to their vision of providing local news, entertainment and sports content through broadcast and digital platforms.

Operating Strategy

Nexstar seeks to generate and enhance their revenue and media cash flow growth through the following strategies:

Develop Leading Local Franchises. Each of the stations the company owns, operates, programs, or provides sales and other services to creates a highly recognizable local brand, primarily through the quality of local news programming and community presence. Based on internally generated analysis, Nexstar believes that in over 78.0% of their markets they rank among the top two stations in local news viewership. Strong local news typically generates higher ratings among attractive demographic profiles and enhances audience loyalty, which may result in higher ratings for programs both preceding and following the news. High ratings and strong community identity make the stations that they own, operate, program, or provide sales and other services to more attractive to local advertisers. For the year ended December 31, 2015, Nexstar earned approximately 30% of their advertising revenue from spots aired during local news programming. Currently, their stations provide between 15 and 25 hours per week of local news programming.

Invest in Digital Media. Nexstar is focused on new technologies and growing their portfolio of digital products and services. Their websites provide access to local news and information, as well as community centric business and services. The websites had 115 million unique visitors who utilized over 848 million page views. Also in 2015, the company' mobile platform accounted for 46% of the overall page views by year end.

Emphasize Local Sales. Nexstar employs a high-quality local sales force in each of the markets to increase revenue from local advertisers by capitalizing on investment in local programming and community websites. Additionally, local advertising has historically been a more stable source of revenue than national advertising for television broadcasters. For the year ended December 31, 2015, revenue generated from local advertising represented 70.6% of the company's consolidated spot revenue (total of local and national advertising revenue, excluding political advertising revenue). In most markets, Nexstar has increased the size and quality of their local sales force and invested in their sales efforts by implementing comprehensive training programs and employing a sophisticated inventory tracking system to help maximize advertising rates and the amount of inventory sold in each time period.

Operate Duopoly Markets. Owning or providing services to more than one station in a given market enables the company to broaden their audience share, enhance revenue share and achieve significant operating efficiencies. Duopoly markets broaden audience share by providing programming from multiple networks with different targeted demographics. These markets increase revenue share by capitalizing on multiple sales forces. Additionally, the company achieves significant operating efficiencies by consolidating physical facilities, eliminating redundant management and leveraging capital expenditures between stations. Nexstar derived approximately 70.0% of their net revenue, excluding trade and barter revenue, for the year ended December 31, 2015 from the duopoly markets.

Maintain Strict Cost Controls. Nexstar emphasizes strict controls on operating and programming costs in order to increase broadcast cash flow. The company continually seeks to identify and implement cost savings at each of their stations and the stations they provide services to and their overall size benefits each station with respect to negotiating favorable terms with programming suppliers and other vendors. By leveraging size and corporate management expertise, Nexstar is able to achieve economies of scale by providing programming, financial, sales and marketing support to stations.

Capitalize on Diverse Network Affiliations. Nexstar currently owns, operates, programs, or provides sales and other services to a balanced portfolio of television stations with diverse network affiliations, including ABC, NBC, CBS and FOX affiliated stations which represented approximately 20.0%, 25.0%, 24.0% and 18.0%, respectively, of their 2015 combined local, national and political revenue. The networks provide these stations with quality programming and numerous sporting events such as NBA basketball, Major League baseball, NFL football, NCAA sports, PGA golf and the Olympic Games. Because network programming and ratings change frequently, the diversity of the station portfolio’s network affiliations reduces reliance on the quality of programming from a single network.

Attract and Retain High Quality Management. Nexstar seeks to attract and retain station general managers with proven track records in larger television markets by providing equity incentives not typically offered by other station operators in our markets. Most of the station general managers have been granted stock options and have an average of over 20 years of experience in the television broadcasting industry.

Advertising Sales

Television station revenue is primarily derived from the sale of local and national advertising. All network-affiliated stations are required to carry advertising sold by their networks which reduces the amount of advertising time available for sale by stations. Nexstar's stations sell the remaining advertising to be inserted in network programming and the advertising in non-network programming, retaining all of the revenue received from these sales. A national syndicated program distributor will often retain a portion of the available advertising time for programming it supplies in exchange for no fees or reduced fees charged to stations for such programming. These programming arrangements are referred to as barter programming.

Advertisers wishing to reach a national audience usually purchase time directly from the networks or advertise nationwide on a case-by-case basis. National advertisers who wish to reach a particular region or local audience often buy advertising time directly from local stations through national advertising sales representative firms. Local businesses purchase advertising time directly from the station’s local sales staff.

Advertising rates are based upon a number of factors, including:

a program’s popularity among the viewers that an advertiser wishes to target;
the number of advertisers competing for the available time;
the size and the demographic composition of the market served by the station;
the availability of alternative advertising media in the market;
the effectiveness of the station’s sales force;
development of projects, features and programs that tie advertiser messages to programming; and
the level of spending commitment made by the advertiser.

Advertising rates are also determined by a station’s overall ability to attract viewers in its market area, as well as the station’s ability to attract viewers among particular demographic groups that an advertiser may be targeting. Advertising revenue is positively affected by strong local economies. Conversely, declines in advertising budgets of advertisers, particularly in recessionary periods, adversely affect the broadcast industry and, as a result, may contribute to a decrease in the revenue of broadcast television stations.

My Path Forward

This company will fit well into my portfolio along side shares of a few other media companies. The fundamentals look good and a dividend growing at 25% per year is extremely appealing. These are the kinds of numbers I like to see when deciding on whether to accumulates shares of a company. The only thing that bothers me is the 5 year estimated earnings growth rate. It seems a little low but then this company has been grown by acquisition so that number may significantly change over time.

From a technical point of view this company seems to have a lot of support near $50 per share. It also has a beta of 2.22 so there's a possibility that internal volatility will allow me to buy these shares on dips. I'd like to buy shares at a price below $60 per share and would be ecstatic to buy them at $50 per share. So I expect to start a position in this company as soon as there is a pullback in the price of these shares. And looking at the stock chart of the company, this could easily become a nice stock to swing trade also.

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