Dissecting The Latest Netflix Earnings Transcript

The following analysis was prepared using tools offered by Sentieo. Sign up for a free trial.

We let our data scientists loose on NFLX’s latest conference call transcript. High-level takeaway:  NFLX is sounding a more muted tone while the Street is still excited, and the stock is at a high.

Key takeaways:

1.  Management sentiment has fallen two quarters in a row. (blue line below)

 

2.  The spread between Management sentiment and Analyst sentiment has fallen to a recent low, implying that while Management is getting less bullish, analysts are not yet changing their tone.

spread

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Sentieo Document Search Weighs In On The Elliott / Arconic Battle

This article was originally published in Forbes.

Earlier this year, Elliott Management, a $31 billion activist hedge fund led by legendary manager Paul Singer, fought a long drawn out battle with Arconic, a metals engineering and manufacturing spinoff of aluminum giant Alcoa. Among the issues to arise from this fight was a particularly nasty corporate governance revelation about a hidden pension liability that takes effect upon a change in control.

At Sentieo, we watched from the sidelines with interest as the story developed, leaning on our indexed repository of public financial documents to uncover the material facts of this case. Our analysis revealed that potential “corporate governance risk” is a hidden aspect of equity investing that even sophisticated investors like multi-billion dollar hedge funds may not have adequate tools to assess.

Here are the facts (throughout the article below we’ve provided links to source documents in our Sentieo public document viewer):

On November 23, 2015, Elliott filed a 13D with the SEC which indicated that it had built a position of over 5% in Alcoa with the intention to influence the company’s management and board of directors.

On February 1, 2016, the company, still known as Alcoa, announced its intention to appoint three Elliott nominees to its board of directors. In November of 2016, the former Alcoa split into the new Alcoa, a pure-play aluminum producer, with the remains of the old company becoming Arconic, specializing in lightweight metals engineering and manufacturing for customers in aerospace and automotive.

Exactly one year later, Elliott Management published a letter to Arconic pointing out that their attempts to privately coax management into making improvements had not succeeded and they felt the need to move their arguments into public view.

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When did Valeant first talk about Philidor?

Valeant Pharmaceuticals (VRX) has drawn a lot of controversy over its ties to the specialty pharmacy Philidor.  An October 21, 2015 report by Citron Research was provocatively titled: “Valeant: Could this be the Pharmaceutical Enron?”. Making note of the report’s impact on Valeant securities, a Bloomberg news article remarked:

The company’s bonds erased more than a billion dollars in market value after the Citron report was published.

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