Everyday Health (EVDY): Quick, Call The Doctor!
by Sonya Colberg, Senior Editor, 9/22/2016 11:41:42 AM
Everyday Health (EVDY) is looking so pale that it may be secretly looking up its symptoms on rival website, WebMD.
Everyday had never exactly been the picture of health. The WebMD wannabe had racked up a $2.38 per share net loss when it went public in February 2014. The company made money in 2014 but slumped back to a $12 million loss or -$0.36 last year.
Here's how the prognosis looks to TheStreetSweeper:
*1. Google Changes
Ten years ago, WebMD was part of Google's experimental program to help improve health search results.
The experiment worked and WebMD became a popular site for consumers to diagnose their own illnesses. Before long, the Mayo Clinic developed its own well-recognized symptom checker.
Everyday Health and other content aggregators rushed in and began offering their solutions. The problem is that they must depend on Google searches because they aren't recognized brands.
Now a decade later Google wants to keep eyeballs glued to its own pages rather than rushing them away to the content aggregators.
Google began this effort in June, when it rolled out a new symptom search for Androids and Apple phones or tablets.
Now this mobile platform is pushing Google ahead of the game as more and more people switch from PC to smartphone searches.
*2. Looming: More Risk
Everyday Health and other content providers are dependent on Google, the No. 1 destination for health information: Get strong Google results or die.
Other risks are building right behind those posed by Google's new symptom search, including:
*The app is initially available in English in the U.S. with plans to expand over the months into other languages, countries and enhancements, thus introducing future challenges to Everyday Health.
*Google's symptom search eliminates the need to cross-check symptoms on WebMD or Everyday Health because cross-checking can be done on Google.
*Google is partnering on symptom search with institutions such as Harvard Medical School and the Mayo Clinic. Doctors are helping with Everyday Health's symptom lookup but most content is by writers who aren't doctors. Examples include:
(Source: Everyday Health)
*3. Mobile App Downloads Decline
Mobile is of growing importance to Everyday Health, which gets 75% of its total traffic from mobile.
Everyday's 2014 mobile revenues grew 82% to $68 million. But mobile has slowed drastically, with 2015 revenues hitting only $73 million or just 8% growth. However the company stopped breaking out mobile revenue after the third quarter of 2015, so we assume revenue growth has further declined.
The chief reason for the mobile disappointment is likely because iPhone users show far more interest in WebMD than Everyday. Everyday Health download rankings frequently fall below 1,500 in the health and fitness category:
(Source: App Annie)
That compares with WebMD's app which consistently ranks around the top 73 downloads:
(Source: App Annie)
An insidious threat has already taken a toll and is set up to kill much of the ability of sites like Everyday Health to make money from ads...
*4. Ad-Blockers Gobble Profitability Pathway
Teck Resources Limited (TCK): Lurching Toward A Monstrous Drop
by Sonya Colberg, Senior Editor, 9/15/2016 9:44:57 AM
The soft, scraping sound behind you is becoming more urgent. Don't look back. Rest assured the source of that cacophony is a clomping pair of red-splattered boots worn by zombie stock,Teck Resources Limited (TCK).
Indeed, this stock appears to be one of those on the ragged edge of the looming apocalypse. Dying sales figures, horrifying commodity prices and grotesque earnings - a 96% second quarter decline - have been sucking the life out of Teck.
The trick will be walking away from Teck as it leads a swarm of undead toward a cataclysm of unspeakable terror. To aid in that effort, TheStreetSweeper offers the top 10 bumps in the night for this stock.
*1. Sales Decline
The Canadian mining company focuses on coal for steel-making, copper and zinc through assets in Canada, the United States, Peru and Chile.
But now the company is clearly struggling as quarterly revenues dropped 13%, which CEO Don Lindsay said was "primarily due to lower prices for all our principal products." First-half sales dropped 15%:
(Source: Company SEC filing)
The sales trend has been nothing but down, down, down for five years:
Revenue fell 4% in 2015 from the prior year. Since 2011, Teck has seen a staggering 28 percent drop in revenue.
The situation resulted in CEO Lindsay issuing a warning, "we have lowered our coal and copper cost guidance for the full year."
*2. Valuation Absurd; Profits Plunge
Yet the stock sports a ridiculously oversized forward price-to-earnings ratio of 25.44.
But Teck isn't even making a net income. Teck earning figures took an epic drop into the red in 2015 ... The company lost over $2 billion!
Shareholders continue to take it on the chin this year, too. In the second quarter, profit dropped 96.2%.
That's right. Teck management said adjusted profit declined to $3 million Canadian, or $0.01 per share, versus $79 million or $0.14 per share last year.
But rather than driving a stake in Teck's heart, the terrible July 28 financials fueled the rocket ship:
The desperate company has been deferring capital expenditures, gradually laying off 1,000 of its 3,000 employees, selling assets and even shutting down its Coal Mountain project, a British Columbia mine once anticipated to produce 2.7 to 3.5 million tons of coal.
But even those efforts likely will not be enough for this commodity-dependent company. Such commodity businesses have taken a beating for a couple of years.
More trouble lies dead ahead...
*3. Commodity Prices Forecast: Demand Declines
Judging by the stock run, the market must have bought into the CEO's second quarter comments on his commodity business.
"While the commodity cycle continues to be challenging, we are starting to see some positive changes in the direction of zinc and steelmaking coal prices," said Mr. Lindsay in a statement.
But the world steel industry itself indicates the future appears gloomy.
Global steel demand contracted -3% in 2015 and the World Steel Association believes demand will decrease once again by -0.8%.
China has been Teck's chief customer. Yet the World Steel economics committee chairman, TV Narendran, said the greatest weakness in steel demand is expected to be in China:
“The economic environment facing the steel industry continues to be challenging with China’s slowdown impacting globally across a range of indicators contributing to volatility in financial markets, sluggish growth in global trade and low oil and other commodity prices...
"In 2016, while we are forecasting another year of contraction in steel demand in China, slow but steady growth in some other key regions including NAFTA and EU is expected. Growth for steel demand in all markets except China is expected in 2017."
(Source: World Steel Association)
Indeed, World Steel anticipates China's demand to drop 4% this year and another 3% next year. Annual steel product demand is expected to be 626.1 million tons ... a whopping 15% lower than in 2013.
*4. Negative: Free Cash Flow
Meanwhile, the company is already failing to generate cash. In fact, last quarter's negative free cash flow hit a stunning $-87.86 million.
That makes negative cash flow in each of the last three quarters ... adding up to negatives in 8 of the past 11 quarters (here).
JAMN Finally Spills the Beans -- And It's an Ugly Mess
by Janice Shell, 6/2/2011 10:32:51 AM
To be sure, the 10-K offered investors little reason to sing. For starters, the filing reveals, this once-hot “coffee company” sells no coffee of its own at all. JAMN relies on a supplier based in frigid Canada – far away from the tropical Jamaican home of its co-founder Rohan Marley – to provide the company with an actual product to sell to its customers instead.
Back in April of 2010, JAMN inked a “supply and toll agreement” with Canterbury Coffee of British Columbia that gave it access to some brew. According to that agreement, JAMN relies on Canterbury to fulfill every role – save a minor one – normally satisfied by a firm that classifies itself as a coffee company. Canterbury purchases the coffee beans. It roasts them. And it then packages them in bags supplied by JAMN – the company’s only real product – for sale to the public.
JAMN signed this deal more than a year ago, right before Shane Whittle – a notorious Vancouver stock promoter – officially resigned as CEO of the company. But the company never mentioned that agreement, seemingly material enough to warrant at least a quiet 8-K report, in a single regulatory filing until now.
Jammin Java (JAMN): Hot Stock ... Bitter Aftertaste?
by Janice Shell, 6/2/2011 10:30:25 AM
It’s time to wake up and smell the coffee! That’s exactly what Jammin Java (OTC: JAMN.OB), a heavily promotedcoffee company, and – for very different reasons – TheStreetSweeper would like investors to do.
Since the beginning of the year, JAMN has miraculously risen from the ashes of the “Grey Market” graveyard to become one of the liveliest – and richest – stocks in the entire microcap arena. JAMN has seen its stock shoot straight toward heaven, soaring from 55 cents to peak above $6 a share on massive daily volume, with its market value nowtopping $355 million despite the company’s limited resources and operating history. (As covered in more detail below, two of the Internet tout sheets pushing JAMN the hardest effectively vanished -- disabled by their Internet servers -- on the day the stock’s trading volume exploded past 20 million shares.)
CCME: Few Signs of Life at 'Healthy' Chinese Firm
by Roddy Boyd, 3/23/2011 9:30:34 AM
Also, and this cannot be understated, hanging out on a sidewalk in Fujian–the sidewalks double as parking spots when the streets, which appeared to have been designed in the Han Dynasty, fill up–was not a viable option. There was also the matter of the world-class headache the Financial Investigator was developing from Fuzhou’s diabolical smell, an epic conflation of poor sewage treatment, air pollution and the smell of cabbage that made getting the hell off Dongjie street a matter of vital importance.
The Financial Investigator and his traveling companion for the trip, an American investor with extensive experience in China, decided to head upstairs despite our interview with the CFO having been cancelled at the last minute (with no explanation given.) We thought a quick tour of the offices and meeting a few other executives might open our eyes to a few things.
Though the language barrier was a little steep with the young receptionist–when we asked for writing paper, she provided Kleenex–we were in short order shown to their conference room and told to wait. It did not escape notice that pride of place in the conference room belonged to a framed certificate of participation from the Fall 2010 Rodman & Renshaw conference, the World Cup for reverse merger companies and the pumpers and touts who peddle them.
Eventually chief operating officer James Yu came down and after spending 30 minutes trying to understand who we were, concluded that giving us a tour wouldn’t hurt. Soon enough, his colleague, Vinne Ye–the chairman’s assistant–came out and took us around.
It was most eye-opening.more...
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