Research Library

HBC Take-Private Proposal Significantly Undervalues Company

Perceptive believes the proposed privatization of HBC meaningfully undervalues the company, particularly in light of the possibility of large value embedded – but largely hidden – in HBC’s leased properties outside of its owned real estate and joint ventures.

This Provider of Compliance and IR Solutions is Poised to Grow

We believe this small provider of compliance and public/investor relations (IR) solutions is poised to grow meaningfully in the coming years.

Renault-Nissan-Fiat Merger: Call Us Skeptical

The merger appears unworkable.

Amazon (NYSE:AMZN): Pricey Stock But What A Sensational Company

Amazon – a leader in multiple markets that should see improving profitability as margins expand.

Tesla (NASDAQ:TSLA) JUST Misses Out On Large Incentives In Canada’s 2019 Budget

The incentive applies to vehicles $45,000 or less, just below the base price of Tesla’s Model 3.

The Case For Merging Fiat Chrysler (NYSE:FCAU) and Peugeot Group (EPA:UG)

Talks between Fiat Chrysler and Peugeot Group appear to be heating up. We explore the potential benefits of a merger.

An M&A Transaction Leads To A Unique Option On Canadian Commercial Real Estate

This unique security will payout based in-part on the past and future performance of certain Canadian commercial real estate.

Is Fiat Chrysler Automobiles NV’s (BIT:FCA; NYSE:FCAU) CEO Compensation Aligned With Shareholder Interests?

FCAU’s compensation scheme is generally well-structured but it’s lacking in one respect, in our view.

Automotive Sector Watch: Recalls, Legal Charges, And Increasing EV Competition Suggest Heightened Risk

This past week highlighted the risks inherent in the auto sector.

Potential GM (NYSE:GM) Investment In Rivian Makes Strategic, Financial Sense

An investment by GM in Rivian that leverages GM’s scale and technology appears to make a lot of sense.

Sell Off In Fiat Chrysler Stock (FCAU) Creates A Buying Opportunity

Fiat Chrysler Automobiles NV’s weaker than expected results and guidance published earlier today caused a sharp drop in its stock price.

We believe the sell-off in FCA’ stock has created a buying opportunity.

Buffett Channels Hugely Successful Past Investments With Apple (AAPL) Stake

When Warren Buffett makes a major investment decision we take notice. After all, Mr. Buffett is arguably the greatest investor of all time, so it’s worth exploring why his conviction in Apple is so great that he’s built it into Berkshire Hathaway’s single largest equity holding (as of Sept. 30, 2018). In our view, Mr. Buffett … Continue reading “Buffett Channels Hugely Successful Past Investments With Apple (AAPL) Stake”

Is It Time To Take A Bite Out Of Apple (AAPL) Stock?

Apple stock has declined approximately 35% since its peak in October 2018 due to broad-based equity market weakness coupled with the company’s recent announcement that it would miss its first quarter revenue guidance. AAPL stock is now trading at approximately 12.6x its trailing twelve months earnings – a level that appears very inexpensive for a leading consumer brand with a highly sticky customer base.

Shifting Gears: Fiat Chrysler Now Our Favorite Auto Stock

Perceptive is keenly aware of the cyclical and secular challenges faced by the auto industry. However, auto company valuations have become so cheap  we think they merit serious investor attention. This is particularly the case for Fiat Chrysler Automobiles NV [“FCA” (NYSE:FCAU; IM:FCA)], which has an exceptionally low valuation and good growth prospects. While we … Continue reading “Shifting Gears: Fiat Chrysler Now Our Favorite Auto Stock”

Transalta Investment Thesis Broken Given Weak Guidance and Challenging Market Fundamentals

Transalta’s (TSX:TA) recently announced 2019 cash flow guidance of C$270 – C$330 was materially below our expectations and well below the company’s previous cash flow target in the C$375 – C$425 range for the 2019 – 2020 period. We believe near-term power demand growth will remain weak due mainly to Alberta oil curtailments that are … Continue reading “Transalta Investment Thesis Broken Given Weak Guidance and Challenging Market Fundamentals”

Transalta Likely To Face Headwinds From Weak Alberta Oil Prices

Transalta’s (TSX:TA) earnings could be in jeopardy if power prices fall.

GM Shares Remain Undervalued

Perceptive believes GM’s shares could rise 60%.

Escalating Trade Conflict Likely to Weigh on GM’s Profitability

Perceptive believes the escalating trade conflict between the United States and its key trading partners could meaningfully reduce General Motors Company’s (NYSE:GM) earnings relative to our prior expectations. GM produces a significant volume of high margin pickup trucks and SUVs in Mexico and Canada that could be subject to increased costs or tariffs of up to 25% due to worsening trade terms. We believe GM will need to absorb a significant amount of the additional costs associated with tariffs or less favorable trade agreements, which will weigh on its profitability. Because the automotive supply chain is extremely complex and intertwined, we believe GM has limited opportunities to mitigate the impact of worsening trade terms. We are therefore lowering our expectation for GM and believe its stock will likely remain range-bound at the current level until further clarity emerges on the impact to its profitability from the ongoing trade conflict.

Shocking: This Power Producer Could Put A Jolt In Your Portfolio

A low valuation and strong free cash flow growth prospects make this power producer’s stock a buy.

Reviewing The Impact Of The Revised Mothball Rule On Transalta’s Stock

The Alberta Electric System Operator’s (AESO) revised mothball rule became effective May 28, 2018. We review the expected impact on Transalta from changes to this important rule.

GM Stock Could Race Higher

Despite strong earnings and an aggressive product launch roadmap, GM’s shares trade as though the company has a bleak future. We illustrate why that’s simply not the case.

Rising Interest Rates Could Boost GM’s Stock

Conventional thinking suggests rising interest rates will negatively impact automotive manufacturers such as General Motors Company (NYSE:GM) because rising borrowing costs reduce consumer’ purchasing power. However, we believe higher rates will actually be a net positive for GM because they should substantially reduce GM’s large pension-related obligations.