THE NEXT BIG THING
GrubHub (GRUB) IPO Preview & Follow Up
On March 28, we published an in-depth IPO preview for the highly-anticipated GrubHub (GRUB) IPO, assigning it a solid grade of "B". In our preview, we commented that GRUB is an IPO we were positive on due to its high revenue growth, profitability, runway for growth ahead, and value proposition for restaurants. We also noted how it may remind investors of another successful recent IPO in the restaurant space, Open Table (OPEN). GRUB's IPO did indeed find strong demand as it raised the expected price range and bumped the share count up prior to its pricing. Then, on April 4, it priced its 7.4 million share IPO at $26, above the $23-$25 expected price range, and opened for trading at $40, 54% above its IPO price.
One of the concerns we had with GRUB, however, even prior to its huge opening pop, was its valuation. This prompted us to publish a follow up report that morning (4/4/14) titled, "Very Strong Demand for GrubHub's IPO PUshes Valuation Higher." In that report, we commented: "The main hang-up we have is its valuation, and that has become a little more of a concern now. If it follows the same track that COUP, PCTY, and CSLT took, GRUB will shoot higher today when it opens for trading, completing a strong initial day, but then succumb to selling pressure in the days to come as IPO investors flip out of the stock. For GRUB to continue moving higher over the next few sessions, it would need to break this recent trend. Not that it can't do that, but, recent history would not be in its corner..."
After opening at $40, the stock did run to about $41 on its first day of trading, but has subsequently sold-off sharply, trading down to the $33 level.
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EMERGING GROWTH STOCKS
Depomed (DEPO): Emerging Growth stock earnings analysis provides insight into messy quarter
 On March 13, one of our fundamental analysts on the Emerging Growth team highlighted Depomed's (DEPO) Q4 earnings report. This specialty pharma has been a nice mover (+32%) since being added to our EG rankings on December 23 at $10.15. The key insight from our report was for investors to not worry about the messy Q4 results. The company sold it diabetes portfolio to PDL BioPharma (PDLI) in Q4 and DEPO has acquired three lucrative pain products in just the past 18 months. So there were a lot of moving parts in the quarter. The thrust of our report was for investors to focus on the bigger picture -- that DEPO is transforming itself into a very attractive pharma company with some lucrative franchises in pain and neurology.
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LIQUID MOMENTUM
Weekly Focus List
 Here
is an example of the Monday report, which includes the updated
Liquid Momentum rankings. The rankings serve as
a swing trader's "tear sheet" -- a compact list
of actionable stocks they can monitor for trades during
the upcoming week. In addition to the updated rankings,
our lead Technical analyst also publishes hand-picked
technical set-ups in the Monday report (and again later
in the week), highlighting compelling technical set-ups.
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STOCK IDEAS
Value Report: ANN Inc. (ANN)
Periodically our fundamental analysts publish reports on Value Leaders components they find particularly intriguing. For example, our March 28 report discussed ANN Inc. (ANN), an apparel retailer for women (Ann Taylor and LOFT). ANN should appeal to value investors because, despite sluggish consumer spending in 2013, ANN's core retail brands held up quite well relative to other retailers. Also, we were happy to see private equity firm Golden Gate Capital, which is known for its golden touch in retail, announce a large equity stake in mid-March. Also, ANN has a lot of cash and no LT debt.
Value Leaders Rankings
Here
is an example of the Wednesday report, which includes
the updated Value Leaders rankings.
For investors looking for new value
stock ideas, this report is a quick way to
get started.
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STRATEGY MEETING KEY POINTS
Swing Portfolio -- Quarterly Performance & Holdings Update (CSTE, SPNS, AMBA, EPAM)
This column provides a summary of Briefing.com’s weekly analyst strategy meeting, featuring discussion of key trends, market outlook and portfolio holdings.
In early April, we provided a look at how our Swing Portfolio has performed since we first launched it back in October of last year, when Caesarstone (CSTE) became our first holding. Specifically, we wanted to compare its performance to that of the major averages over this time-frame. Going forward, we will strive to publish the performance on a quarter end basis. In addition to the updated performance figures, we also wanted to provide a few updated thoughts on each of the three holdings currently in the portfolio.
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