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Innocap Inc. (OTCMKTS:INNO) Could be Lining Up a Windfall Profit for Astute Traders

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According to company materials, in May 2011, Innocap Inc. (OTCMKTS: INNO) entered into agreements with its new President, who brought the company a new business plan of finding and assisting in the salvage of sunken ships. The company’s new President, Paul Tidwell, apparently devotes full time to implement the new business plan. He reportedly has extensive experience in finding and salvaging sunken ships.

Some of his activities have been filmed and shown on networks like the History Channel and Discovery Channel.

The company reports that to accomplish this new business plan, it will have to raise substantial debt or equity capital or conduct projects jointly with other parties who provide project funding since each project is likely to require several million dollars. Each project will require a surface vessel and crew, small submarine, salvage equipment and sophisticated cameras and filming equipment.

Since May 2011, Paul Tidwell has been working to identify the specific projects that the company will attempt to undertake initiatives and seek to finance for those projects. As part of those plans, the company will consider applicable maritime and international laws concerning the ownership of any recovered items. The company also considers projects that may be attractive for the sale of video rights to the search and recovery efforts.

As we have noted, the company is in the midst of a pivot into the treasure hunting game. Management has painted a narrative involving a change in leadership to a man with obvious experience and success at this venture.

The company recently put out a presser detailing its plans going forward, and further carving out its narrative surrounding its new leader: According to that piece, Mr. Tidwell has more than 25 years of experience in this area including, prior to joining Innocap, having met with and negotiated salvage contracts with officials of many countries, including Oman, the People’s Republic of China, Japan, and Guyana. He has been involved in many recoveries including the deepest known recovery dive to date.

Other sources that have covered or referred to Mr. Tidwell’s exploits include: The hardcover book, Silent Killers: Submarines and Underwater Warfare, by James P. Delgado and Clive Cussler, Battleground Atlantic by Richard Billings, The Universe Below, by two-time Pulitzer prize winner, William J. Broad, and Sunrise Cartel by Robert Wernli.

Finally, and perhaps most importantly, the company just put an 8-K filing detailing the fact that it has entered into an agreement with Solar Resources Inc., a company in Singapore, to assist Solar to recover a large shipment of tin from a sunken ship that is believed to be in the waters between Indonesia and Malaysia. An investor, who is a minority shareholder in the Company, provided the $200,000 needed by the Company to participate in this contract.

The parties of the agreement have also agreed to use a portion of the proceeds from the salvaged assets equal to $600,000 to recover another cargo believed to have sunk off the coast of the Philippines. The Company will receive 40% of the proceeds of the salvaged cargo after payment of all expenses related to the salvage effort. The salvage project will be started within two weeks of the signing of the contract.

So, clearly, the project is moving forward fast. And it may just be a matter of time before we see more concrete results from this venture. For investors, that will be too late to get the big piece of the pie.

Conclusion

This is a pivot, plain and simple. The company is now on a course that could intersect with huge windfall profits. And the man at the helm has significant experience in its current pursuit, with coverage in the press and on major media networks. Mr. Tidwell appears to be the real thing.

And the chart is starting to show this prepotency. With a small float, a breakout here could have the potential to extend into a major momentum move. If that is augmented by positive news from the company’s Indonesia front, then the sky is the limit on this one. Hesitation could be the enemy of profits for traders and speculators in this pure play treasure hunter setup.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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How PayPal Holdings Inc. (NASDAQ: PYPL) could change?

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Today, we are going to evaluate PayPal Holdings, Inc. (PYPL) so as to get clarity on this organization and its current standing from a fundamental perspective. In that process, we hope to give some insight into what this stock may offer as an investment opportunity for prospective investors. To accomplish that, we will be moving from top to bottom in our evaluation. As such, our first point of focus will be a look at the company from a revenue perspective.

Over the course of the prior fiscal quarter, the company saw sales of 3.69B. That number needs context to grant us any insight: by comparison, we can see an overall change in revenues, on a quarterly year/year basis, of 0.2%. However, in sequential terms, the situation looks a little different, with sales decline by -0.02% from quarter to quarter. While revenue analysis gives us a strong sense of changing demand trends in the company?s end market, and how the company is executing in terms of its relationship with potential customers, real shareholder value is only truly created by profitability. With this in mind, we turn to the company?s bottom line data.

PayPal Holdings, Inc. (PYPL) may offer even more interest as an object of analysis if we zoom in a bit more and look at some of its core trends. For example, the cost of selling goods last quarter was 2.12B, which yielded a gross basic income of 1.58B.

The company?s recently reported data shows total diluted outstanding shares of 1.22B, which implies an overall EPS (or earnings per share) of 0.42. To give the reader a little context that number compares to an analyst consensus expected value of 0.54 in next fiscal quarter EPS data. Next, let?s look ahead at coming performance based on what analysts are projecting for the company more generally, before closing with a survey of the balance sheet and cash flow. Among analysts, the average recommendation for this stock is Overweight. That number represents the product of the work of 43 analysts. It is important to consider the views of the analyst community even though we don?t suggest taking analyst recommendations as face value plans for action in a portfolio. The primary value of looking at analyst opinions is in knowing what sort of views may already be priced into the stock.

If we look at price targets, we can see that analysts currently have things pegged around an average target at about 89.37. When we look at next year, we can things shake out in terms of estimates of a fiscal year forecast to bring about 2.83 in terms of total EPS. That works out to a median P/E ratio basis valuation of right around 29.63 times earnings.

So far, we have covered how the company is doing on both the top and bottom line, as well as what professional analysts believe about its core trends and operational and financial performance going forward. However, we would be remiss if we did not also take a quick look at cash flows and the company?s balance sheet to round out our perspective on the name.

The last thing we like to look at for a company like is the balance sheet. That really is the heart of the company?s ability to weather tough times, and the basis for an experienced investor?s sense of the real downside risk inherent in a stock. So, as we like to see, the balance sheet is the seat of faith for the market. In this case, for PYPL, the company has about 2.96B in cash in the bank, according to its most recent reports. That cash sits opposite about 3B in total current liabilities on the ledger. But balance sheet health isn?t a fixed idea. Trends matter. And the best way to understand real risk, particularly where debt levels are concerned, is to trace a line connecting the past with the future. In this case, the company?s debt has been growing. The company also has 42.32B in total assets, balanced by 27.68B in total liabilities. That should put things into perspective quite a bit more in terms of how one can justify the current market cap of the stock.

Finally, we want to take a peek at cash flows. In this case, the company saw free cash flowing at (527M) last quarter, which represents a net change for the quarter in cash levels of 442M. That works out to about (349M) in terms of cash flow on a net operating basis.

This is certainly an interesting story and one we plan to check back on soon.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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Why Intel Corp. (NASDAQ: INTC) might wilt?

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We are going to take a deep look at Intel Corp. (NASDAQ:INTC) to get a better view of the company and its prevailing status, as well as the prospect it may offer for investors. Today’s prime focus will be a fundamental assessment of the equity from top to bottom.

As such, let’s begin with the top line, i.e. revenue trends. Last quarter, the firm saw its overall revenue come at $16.07B. That represents a change in revenues, on a quarterly/yearly basis, of 0.08%. If it is translated into sequential terms, the firm witnessed sales decline by -0.06% from quarter to quarter.

It’s important to track the top line data. There’s no better way to compute the end market’s reception of a firms products. But no one wins without bottom line performance, which is what is required to look at next. Intel Corp. (NASDAQ: INTC) is intriguing when segregated to its core data. The cost of selling goods in preceding quarter was $6.39B, resulting in a gross basic income of $9.67B. For shareholders, provided the total diluted due shares of 4.79B, this means earnings per share of $0.93. Note, this assesses with a consensus analyst projection of $1.07 in EPS for its next quarterly report.

Given that data, now is the time to turn to a thorough glance across analyst projections for the firm going forward. At present, analysts have a consensus average recommendation of Overweight. This is grounded on a total of 40 analyst. While we don’t recommend taking analyst calls as face value strategies for action in a portfolio, we do consider it is vital to note where consensus is on an equity to understand what basic assumptions are possibly already discounted into the pricing of shares. As far as price targets, market analysts have an average target of $59.60. In addition, for next year, estimates of a fiscal year forecast is 4.11 in total EPS. On a median price to earnings ratio, that outlook results in a valuation of $11.98 times earnings.

For Intel Corp. (NASDAQ: INTC), the firm presently holds around $3.55B in cash. That cash is balanced against around $3.84B in total current liabilities. The firm’s debt is $growing, while total assets are $128.6B balanced by total liablities of $58.43B. The free cash flow last quarter was $3.37B, representing a net change in cash of $121M. On a net operating level, the cash flow was about $6.28B.

Let’s take a look at the technical analysis. The Barchart Technical Opinion rating is a 40% Sell with a Weakest short term outlook on maintaining the current direction. Longer term, the trend strength is Weak. Long term indicators mostly agree with the trend. See More Share Trade INTC with: Get API Access to INTC Quotes !function(t, w) { var e = document.getElementById(t);e.style.width = w+”px”; var n = function(w) {var n = e.parentNode,i = n.clientWidth,r = i / w;e.style.webkitTransform = “scale(” + r + “)”, e.style.transform = “scale(” + r + “)”, e.style.webkitTransformOrigin = “0 0”, e.style.transformOrigin = “0 0”, n.style.minHeight = e.getBoundingClientRect().height + “px”}, i = function(e) {var n = window.onresize;window.onresize = function() {e(w), “function” == typeof n && n()}},r = setInterval(function() {var o = e.getBoundingClientRect().height;o > 40 && (clearInterval(r), n(w), i(n))}, 100) }(“type_3300″,”300”); INTC Related ETFs Symbol %Holdings 3M %Chg INTC +1.35% Intel Corp FTLS 1800% +1.30% Long/Short Equity ETF FT SPY 1% +4.42% S&P 500 SPDR QQQ 3.22% +9.67% Nasdaq QQQ ETF IVV 1% +4.41% S&P 500 Ishares Core ETF VOO 1.12% +4.44% S&P 500 ETF Vanguard Symbol %Holdings 3M %Chg INTC +1.35% Intel Corp PVAL 0.43% +3.02% Principal Contrarian Value Index ETF ACWI 0.5% +0.23% ACWI Ishares MSCI ETF FDLO 1.65% +4.79% Fidelity Low Volatility Factor ETF IUSG 0.99% +6.61% S&P US Growth Ishares Core ETF SPYG 1.06% +6.73% SPDR S&P 500 Growth Portfolio ETF Business Summary Intel Corporation is one of the world’s largest semiconductor chip maker. The Company develops advanced integrated digital technology products, primarily integrated circuits, for industries such as computing and communications. It also develops platforms, which it defines as integrated suites of digital…

We will apprise the interesting story of Intel Corp. (NASDAQ: INTC) as new events transpire.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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What’s not driving Cisco Systems Inc. (NASDAQ: CSCO)?

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Today, we are going to evaluate Cisco Systems, Inc. (CSCO) so as to get clarity on this organization and its current standing from a fundamental perspective. In that process, we hope to give some insight into what this stock may offer as an investment opportunity for prospective investors. To accomplish that, we will be moving from top to bottom in our evaluation. As such, our first point of focus will be a look at the company from a revenue perspective.

Over the course of the prior fiscal quarter, the company saw sales of 12.46B. That number needs context to grant us any insight: by comparison, we can see an overall change in revenues, on a quarterly year/year basis, of 0.04%. However, in sequential terms, the situation looks a little different, with sales grow by 0.05% from quarter to quarter. While revenue analysis gives us a strong sense of changing demand trends in the company?s end market, and how the company is executing in terms of its relationship with potential customers, real shareholder value is only truly created by profitability. With this in mind, we turn to the company?s bottom line data.

Cisco Systems, Inc. (CSCO) may offer even more interest as an object of analysis if we zoom in a bit more and look at some of its core trends. For example, the cost of selling goods last quarter was 4.63B, which yielded a gross basic income of 7.83B.

The company?s recently reported data shows total diluted outstanding shares of 4.84B, which implies an overall EPS (or earnings per share) of 0.56. To give the reader a little context that number compares to an analyst consensus expected value of 0.69 in next fiscal quarter EPS data. Next, let?s look ahead at coming performance based on what analysts are projecting for the company more generally, before closing with a survey of the balance sheet and cash flow. Among analysts, the average recommendation for this stock is Overweight. That number represents the product of the work of 31 analysts. It is important to consider the views of the analyst community even though we don?t suggest taking analyst recommendations as face value plans for action in a portfolio. The primary value of looking at analyst opinions is in knowing what sort of views may already be priced into the stock.

If we look at price targets, we can see that analysts currently have things pegged around an average target at about 49.14. When we look at next year, we can things shake out in terms of estimates of a fiscal year forecast to bring about 2.90 in terms of total EPS. That works out to a median P/E ratio basis valuation of right around 14.89 times earnings.

So far, we have covered how the company is doing on both the top and bottom line, as well as what professional analysts believe about its core trends and operational and financial performance going forward. However, we would be remiss if we did not also take a quick look at cash flows and the company?s balance sheet to round out our perspective on the name.

The last thing we like to look at for a company like is the balance sheet. That really is the heart of the company?s ability to weather tough times, and the basis for an experienced investor?s sense of the real downside risk inherent in a stock. So, as we like to see, the balance sheet is the seat of faith for the market. In this case, for CSCO, the company has about 6.72B in cash in the bank, according to its most recent reports. That cash sits opposite about 7.74B in total current liabilities on the ledger. But balance sheet health isn?t a fixed idea. Trends matter. And the best way to understand real risk, particularly where debt levels are concerned, is to trace a line connecting the past with the future. In this case, the company?s debt has been falling. The company also has 114.01B in total assets, balanced by 67.35B in total liabilities. That should put things into perspective quite a bit more in terms of how one can justify the current market cap of the stock.

Finally, we want to take a peek at cash flows. In this case, the company saw free cash flowing at 2.18B last quarter, which represents a net change for the quarter in cash levels of (10.91B). That works out to about 2.42B in terms of cash flow on a net operating basis.

This is certainly an interesting story and one we plan to check back on soon.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE