General Motors Nudges Cadillac Closer to IPO

Sep 24, 2014, 3:05 pm EDT
General Motors Nudges Cadillac Closer to IPO

Some big changes are coming to General Motors (GM) – that is, the company is turning Cadillac into a separate company and is moving the headquarters from Detroit to New York City. While General Motors has not indicated much about its plans, a good case could be made for a spinoff of Cadillac as a public entity.

No doubt, GM stock definitely needs a lot of help. For the year so far, shares are off about 18%. This compares to a 6% return for rival Ford (F). And as for Tesla (TSLA), it’s in another league entirely, with gain of 68%.

The main reason for the lackluster performance of General Motors is, of course, the uncertainty of the recalls. Let’s face it, measuring the impact of the liability exposure is pretty dicey. As seen with other companies in similar situations, like BP (BP), it’s common for the stock price to remain mostly dead money. Read 

Analysts Think Alibaba Stock Is a ‘Buy’ … But With Limited Upside

Sep 23, 2014, 1:15 pm EDT

Alibaba (BABA) stock soared on the day of its initial public offering but has trailed off since then, making some Wall Street price targets look like a bit of a stretch for BABA stock.

BABA stock rose 38% to close at $93.89 a share Friday in its New York Stock Exchange debut, but it’s off more than 6% since then. Indeed, Alibaba stock lost more than 2% in early Tuesday trading alone.

It’s far too soon to ascribe the movement in BABA stock to, well … anything. BABA stock is still settling after the quake of the IPO process, which creates supply demand issues, as well as short-term trading opportunities. Read 

Big Bank, Travel Site Among 10 New Stocks to Watch This Week

Sep 22, 2014, 1:59 pm EDT
Big Bank, Travel Site Among 10 New Stocks to Watch This Week

The market for new stocks looks fairly robust after last week’s boffo offering of Alibaba (BABA) BABA stock jumped nearly 40% on its first day of trading, putting Alibaba’s market cap at an eye-popping $230 billion.

That’s what you call a deal going off without a hitch.

This week, 10 new stocks plan to hit the markets (one of these — Civitas Therapeutics — is a holdover from last week). None of them are exactly Alibaba, but there are some exciting ones to look at. Read 

The Alibaba IPO Roars to Life

Sep 19, 2014, 9:42 am EDT
The Alibaba IPO Roars to Life

It’s a wrap. The Alibaba (BABA) IPO ended the day up an impressive 38% to $93.89, giving the company a market cap of $231 billion on volume of a staggering 271 million.

The deal actually overshadowed what otherwise would’ve been news-leading items such as the failed vote for independence in Scotland, Larry Ellison’s move to step down as CEO of Oracle (ORCL) and the debut of Apple’s (AAPL) new iPhone.

After such a big day, the valuation on BABA stock looks awful pricey. The price-to-earnings multiple (based on fiscal 2014 earnings) is about 62x, but if you factor in the growth rate, things look more reasonable. For example, if net income increases at just half the rate of the past year, Alibaba would be trading at a forward P/E of about 33. Read 

Dave & Buster’s IPO – A Good Deal, Depending on Pricing

Sep 18, 2014, 10:20 am EDT

We’ve got a sports bar showdown on the horizon: Buffalo Wild Wings (BWLD) vs. soon-to-be-public Dave & Buster’s. And regardless of how you feel about either company’s chicken wings, there’s a lot of debate to be had about which company is a better investment.

Dave & Buster’s filed its S-1 registration statement with the SEC September 8 — its second attempt to go public since being taken private by Wellspring Capital Management in 2006. But the Dave & Buster’s IPO has stiff competition from BWLD stock, which has outpaced the S&P 500 by 10 percentage points in the past year.

So, you like the sports bar business model and you want to get a piece of the profits. Are you better off going with the streamlined sports bar experience offered by BWLD, or do Dave & Buster’s arcades give the company an edge? There’s no obvious answer, so let’s dig into the financials for each company to see which one is more compelling. Read 

Alibaba IPO: 3 Things to Know About Alibaba’s Taobao and Tmall

Sep 18, 2014, 9:30 am EDT

E-commerce giant Alibaba is slated to go public Friday, and the Alibaba IPO is expected to be one of the largest deals (if not the largest) in history.

That’s not really a surprise, considering the online retailer does more transaction volume than U.S. giants like eBay (EBAY) and Amazon (AMZN), and its success has even given struggling Yahoo (YHOO) shares a noticeable boost over the last year or so.

Lots of investors don’t know much about Alibaba, though, because comparisons and exaggerations are floating around everywhere. Many are even saying that Alibaba is like Amazon, eBay and Google (GOOG) all rolled into one because of its breadth of services. Read 

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