Zolio Market Commentary

Pricing Under Armor Post-Earnings

Pricing Under Armor Post-Earnings

| July 24, 2014

Under Armor (UA) is a growth stock in a non-growth market. Sports apparel and footwear have a limited market size that can only grow so far, yet this stock has shown robust top-line growth that has pleased growth investors who have held the stock for a long time. UA did not disappoint this quarter, with […]

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Modeling Chipotle’s Future Earnings

Modeling Chipotle’s Future Earnings

| July 22, 2014

Once again, Chipotle (CMG) blew away expectations with a strong quarter of revenue growth and earnings, as the food chain saw revenues grow 28% to top $1 billion for the quarter. The stock rose 10% immediately after the report, brining its P/E ratio to 56 and leaving many investors wondering if now is the time […]

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Financial Stocks and Forward Expectations

Financial Stocks and Forward Expectations

| July 18, 2014

Despite the growing tensions in Russia, financial stocks have had a good week, with earnings results showing strong return on equity and strong EPS to shareholders, despite declining revenues in certain corners of the market. Trading continues its steady decline, with investment bankers seen less activity yielding less profits, but asset management and retail banking […]

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Citigroup’s Settlement and Forward Earnings Expectations

Citigroup’s Settlement and Forward Earnings Expectations

| July 14, 2014

Early Monday morning, both Citigroup (C) and the Department of Justice confirmed that the bank would pay $7 billion in a settlement for its part in the residential mortgage-backed securities blowup that caused the worldwide global financial crisis in 2008. While the ethics of the settlement relative to the size of the crisis can be […]

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Corrections and the Start of Earnings Season

Corrections and the Start of Earnings Season

| July 8, 2014

Prolific, controversial, and opinionated Barry Ritholtz is one of the most widely read asset managers and hedge fund critics. His recent article on a coming correction has struck a chord with many investors, and may even have had a marginal impact on the S&P 500, which turned south in the first two days of trading. […]

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An Underappreciated Strategy for Providing Alpha Post 2008

An Underappreciated Strategy for Providing Alpha Post 2008

| July 8, 2014

A curious thing happened after the financial crisis in 2008. When stocks fell, the buying opportunity of a lifetime presented itself to people who could buck the sour mood—as Timothy Geithner writes in his recent book, serious investors began discussing buying gold and burying it in your backyard as a real investment option. Few investors […]

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The Return of the Macro Bulls

The Return of the Macro Bulls

| July 2, 2014

After climbing nearly 30% in 2013, the S&P 500 (SPY) was due for a correction. This was the opinion of most market participants in early 2014, and many trendspotting investors were placing heavy bets on that correction happening. While some hedge funds attracted headlines for buying thousands of puts on SPY at the end of […]

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