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Molson Coors Brewing, a great opportunity or a lost case?

May 3, 2018
Molson Coors, a great opportunity or a lost case?   Yesterday, the American brewing company reported its first quarter results for the year, which made the stock fall to its lowest value in 52 weeks. The company’s sales dropped 4.8% and although net income was up, the adjusted EPS was 0.48 USD, lower than the analysts’ expectation of 0.80 USD per share. The stock is closed at 60.64 USD, which indicates that the company is trading below its Book Value. Its accumulated 3-year return is very negative, a -18.1% performance. The company is known for brands such as Coors Light, Molson Canadian, Carling, Miller, among others. Many analysts blame the new tendency of customers to prefer craft beers to the more mainstream brands. As soon as the earnings were out, we at GEM Research, updated our opinion on the beer company. Is it this a great opportunity to benefit from? Subscribe now for only 25 euros and gain access to our report on Molson Coors and many other great stocks.  Thanks for your time and don’t forget to visit us at www.gem-research.com

Facebook: The Great Ones Survive

April 27, 2018
Facebook: The Great Ones Survive   The predictions of some analysts regarding the company were not entirely accurate, especially in terms of the number of users. However, its image has been damaged and its founder and CEO Mark Zuckerberg, has taken the necessary steps to improve the image of Facebook and guide the company to where it should be. Since its IPO in 2012, the company has shown an unprecedented growth in its sales of approximately 49% per year. Due to the present events and the release of its quarterly results, we analyze the company once again and arrived at a new target price on the value of its shares. If you want to know our opinion, sign up now at https://gem-research.com/our-plans/ Thanks for your time and don’t forget to visit us at www.gem-research.com

UPM: A sucess story

April 20, 2018
UPM’s shares already increased over 15%!   We would never think that a Finnish company would be one of our best picks, but since we started covering the company, it has risen over 15%. For those who don’t know the company, it produces biofuels, biochemicals as well as forest products, such as paper, pulp, timber and its derivatives. It has operations on over 12 countries and sales of over 10 billion euros per year! Innovation and technology are key drivers and principles in the daily activity of the firm. It also has great fundamentals and strong margins. The latest results were quite impressive, and it has been moving the shares upward. The dividends that the company pays is another important factor we liked the stock and gave it a strong 4/5 GEMs rating. In our first report on UPM, we valued the share at 33.58 EUR, when it was trading at only 26.12. In February we issued a second report with a new fair value, quite close to our prior report. Do you want to know our current opinion on this marvelous opportunity? Sign up now and for only 25 euros you will gain access to a great variety of content! Thanks for your time and don’t forget to visit us at www.gem-research.com

Stock of the week: INDITEX

April 18, 2018
The stock of the week is Inditex.   Zara, Massimo Dutti, Bershka, those are only some of the brands owned by the Spanish giant Industria de Diseño Textil (Inditex). Although it has always been considered one of the favorite stocks of the Iberian country, Inditex has suffered from the tightening of margins. This is not unique for Inditex, major retailers around the globe have been losing a significant number of customers to companies such as Amazon. The traditional retailers will need to reinvent their business models if they want to survive the new trend. On December 15, we issued a report on Inditex, where we signaled that the stock was overpriced, and we gave it a fair value of 23.37 euros. At that time the stock was trading at 29.96 euros. It was 28.20% higher than our target price! Important Investment Banks were valuing the stock between 32 – 38 euros a share. Nevertheless, it didn’t take much for the stock to reach our target price and it hasn’t moved much since then. Yesterday we analyzed the latest earnings result of the company and after careful consideration, we arrived at a new fair value of 25.65 euros. This implies a 1.91% upside from yesterday’s close. At the current time we do not see significant reasons to buy or even sell the stock. New results will be key for a future upgrade or downgrade on our fair value. Thanks for your time and don’t forget to visit us at www.gem-research.com Inditex Report! CLICK HERE

Stock of the week: HYPERMARCAS

April 11, 2018
The stock of the week is Hypermarcas.   Starting today, I will be posting 1 equity report per week! Today, I present to you Hypermarcas, a leading company in the Brazilian pharmaceutical market. Link below: Surely you have used or heard about various brands of the company, such as: Alivium, Finn, Benegrip, Engov, Doril, and several others. I hope our report is very useful to everyone and do not forget to create your free account at www.gem-research.com

SPOTIFY’S UPCOMING IPO: WHAT YOU NEED TO KNOW.

March 19, 2018
SPOTIFY’S UPCOMING IPO: WHAT YOU NEED TO KNOW.   Spotify has become a must have of millennials nowadays, and little by little it’s starting to become viral. According to data published by the company, the number of premium subscribers has not stopped growing during the last years, the same happens with the free subscribers. The great advantage of having a large base of free subscribers, is that it makes the application an unbeatable medium for third parties interested in launching marketing campaigns through its platform, representing a key opportunity for Spotify’s expansion strategy. The IPO of the streaming music platform, announced by the company itself last December, still has no confirmed date but everything indicates that it would occur during the first week of April. The operation will be carried out in a very particular way since it will not involve the sale of new shares and the value will start trading immediately, according to the price assigned by the market. History shows that the first days of negotiation generates large volumes of transactions and opportunities in the short term. IPO PROS AND CONS Let’s start with the negative points, among which we can name 3. First, we must acknowledge that the company increased its income by 40% compared to the previous year, however the losses doubled. Secondly, 70% of the expenses of the company is destined to the payment of rights of the record companies and great part of its music comes from only 3 of them; Universal, Sony and Warner. And thirdly, we must not forget that this type of company takes several years to achieve profitability, depending on the expectations of generating future income. On the other hand, we must also highlight the points in favor. Spotify is a leader in its sector over Apple Music, Amazon Music and Pandora Media. In addition, we must add that 90% of revenues comes from premium users and their subscription rate does not stop growing. A very important fact is that the rate of abandonment of the service has decreased in recent years, showing a great improvement of customers loyalty. That said, in less than a month we will have the figures to analyze the company and give our independent opinion about Spotify.

INDITEX REACHES OUR TARGET PRICE!

March 19, 2018
Inditex reached our target price!   At the beginning of the trading day, the textile giant, Inditex, reached our target price of 23.37 euros. According to our first valuation of the share, on September 20th (2017), the target price of the share was 23.82 euros and the asking price that day was 32.41 euros. After the company presented its quarterly results, we updated our valuation on December 15th (2017). That day the stock traded at 29.96 euros, and according to our valuation the stock was overvalued by 30%. Our fair price back then was 23.37 euros. In today’s session, Inditex presented its annual results, the stock was trading over 4% higher. During the week we will update our opinion on the company and our clients will have access to our fresh report.