Tuesday, June 28, 2016

This Stock Belongs On Your Radar

TravelCenters ($TA) operates 255 rest stops, mostly located along the nation's interstate highway system, that include fuel stations, convenience stores, truck-repair services, and restaurants. On 6/15/2016 TravelCenters stock was up as much as 37% and closed the day up 24% on the news that TravelCenters rejected a $14-per-share bid from private equity firm Golden Gate Capital.
Truck-stop operator TravelCenters of America LLC rejected a $14-per-share
December bid from Golden Gate Capital, but the private-equity firm remains interested in a deal, according to people familiar with the matter.
Golden Gate hasn’t been in contact with the company since the offer was rejected, and the San Francisco firm isn’t interested in making a hostile bid, some of the people said.--WSJ
With the stock trading a shade under $8-per-share, a $14 bid is huge premium. The rejection of this bid more than likely put and will put a lot of pressure on TravelCenter's management team to make something happen to get the stock higher and justify a $14 bid rejection.  At the same time, the bid probably put TravelCenter's on the radar of other firms that perhaps had no idea who they were or that there might be some hidden value worth doing some due diligence on.


SOURCE;WSJ

My opinion and outlook are subject to change as new information comes in.
Frank Zorrilla, Registered Advisor In New York. If you need a second opinion, suggestions, and or feedback in regards to the market feel free to reach me at fzorrilla@zorcapital.com or 646-480-7463. 
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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Friday, June 24, 2016

5 Things You Should Know About The Brexit Aftermath

Global markets are selling off due to Brits decision to leave the EU.


The market is reacting today like if this is a big deal, short-term everything is.  Long-term you can add this to one of the many uncertainties the market has shrugged off over time.



1. In the future, today's selloff will be an irrelevant data point in the SP500 chart just like 1987.


2. The longer your timeframe in the market the more irrelevant today's Brexit is.  The two charts below tell you the whole story.  The odds of SP500 being up in 5 years is 80%, the higher the "drop, the higher the odds of the SP500 being up. (I'm specifically talking about the SP500, not individual common stocks).




3. Pullbacks are buying opportunities in the SP500 for those who have time on their side, the bigger the correction, the better.


4. BREXIT will probably have little effect on your daily, weekly, monthly, usage of $AMZN and $FB.

5.  Live to fight another day, be patient with your buys and always consistent with your long-term plan. 

My opinion and outlook are subject to change as new information comes in.
Frank Zorrilla, Registered Advisor In New York. If you need a second opinion, suggestions, and or feedback in regards to the market feel free to reach me at fzorrilla@zorcapital.com or 646-480-7463. 
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

Source; Schaeffer Research, Morgan Housel, JP Morgan.
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Tuesday, June 14, 2016

Two Amazon Derivative Plays That Are Ready To Fly



Atlas Air Worldwide ($AAWW) and Air Transport Services ($ATSG), are two stocks worth keeping an eye on for the next few quarters because of their recent partnership with Amazon.
On 3/8/2016 Air Transport Services signed this deal with Amazon “ Aircraft lessor Air Transport Services Group Inc said it would lease 20 Boeing 767 freighter planes to Amazon.com Inc as the online retailer looks to operate its own air cargo network.As part of the deal, Amazon also has the right to buy up to 19.9 percent of ATSG’s stock over five years at $9.73 per share.” 
On that news, ATSG was up as much as 24% the next day and closed up 16% on the news. Since then the stocks has digested the gains by trading sideways.
On 5/4/2016 Atlas Air Worldwide signed a similar deal; “Amazon (AMZN) and Atlas Air Worldwide (AAWW) have inked a long-term air cargo services deal that gives the e-commerce titan the rights to acquire up to a total of 30% equity of the outsourced aircraft provider as Amazon fortifies its delivery capabilities.
The deals, which involve 20 B767-300 converted freighters, go into effect in the latter half of the year and will “ramp up to full service through 2018,” said Atlas Air. These include 10-year dry leases by its Titan Aviation leasing unit and 7-year crew, maintenance and insurance operations agreements.
Under the terms of the agreement, Amazon can acquire up to 20% of Atlas Air’s common shares at 37.50 a share over the course of five years, and up to another 10%  at the same price over a period of seven years.”
Atlas Air Worldwide was up as much as 50% the next day on the Amazon news and closed up 26%.  Since then the stock has settled down, and volatility has contracted.
There’s no doubt that these two stocks will be huge benefactors from Amazon’s dominance in the retail world for many quarters to come.
Source; Reuters, IBD
My opinion and outlook are subject to change as new information comes in.
Frank Zorrilla, Registered Advisor In New York. If you need a second opinion, suggestions, and or feedback in regards to the market feel free to reach me at fzorrilla@zorcapital.com or 646-480-7463. 
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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