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SWK – Business Momentum to Continue

“We have a history of, if we can’t fix something in 18 to 24 months, we usually do something else with it. And we don’t fall in love with anything that isn’t earning its cost of capital.” – Stanley Black

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Lyondell Numbers and Very Weak NGLs Bode Well for Westlake

Lyondell reported very strong earnings this morning, beating consensus estimates by more than 10%.  The strength of their US olefins and polyolefins business was notable, given that the company has experienced a meaningful delay in restarting its La Porte (Tx)

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TMT: Portfolio Update – Sooner, or Later?

TMT: Portfolio Update – Sooner, or Later? We sorted a universe of 67 large cap TMT stocks based on the 5-year cash flow growth projected by consensus, and the percentage of EV represented by the implied 5th year terminal value.

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Dow – Good Quarter Understates Potential – Particularly If Dow Can Stick To the Path

Dow Chemical managed to show growth in Q2 2014 despite a couple of headwinds, some of which were discussed and some were not.  Weaker crop markets and plant closures were discussed but the company also raised a second issue that

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The Durbin-Related Threat of Direct-Routing to Visa and Opportunity for FIS, ACIW, VNTV

“Rewards cards could crater tomorrow … and [the volumes] move over to the debit or charge card side”, Phil Heasley, Chairman of Visa 1996-2003 and current CEO ACIW, June 2014 In 2015, we expect large issuers (with the top-5 controlling

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Worst Kept Secret on Wall Street – RAI Buys LO

In a deal that is likely not a surprise to anyone, Reynolds American (RAI) this morning announced that it would be acquiring Lorillard (LO) for ~$69 per share in cash and RAI stock; The complexity of the deal shows us

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Aluminum – A Short Term Bubble or the Real Thing

Aluminum pricing has continued on the upward trend begun in late 2013 and frankly has moved further than we had anticipated.  While we are quite bullish on the space and have written positively in both the metal and Alcoa, we

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Apple and Google: On Your Wrist and In Your Car

Apple and Google: On Your Wrist and In Your Car Despite slight recent design shifts toward each other, AAPL and GOOG still have very different world views – a contrast that is clear in their strategies to extend their platforms

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SSR Health New Product Approval Portfolios & Supporting Data Update

Drug, biotech, and research-based spec pharma stocks tend to outperform their peers in the year or so before and after regulatory actions (‘PDUFA’ dates) on major new products, with a large portion of total risks being concentrated in the days

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The Collateral Plays on EMV – FIS, VNTV, NCR, NXPI

“It is very clear that card issuers like Capital One need to have our US customer base by the latter part of 2015 on a chip basis ….. but I have a feeling by the time we have all invested

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