Barron’s summary: Positive on MTZ, BID, WBC, STBZ; Cautious on FB, FCAU, JD
Cover story: Special report on Asia features commentary and picks from Justin Leverenz of the Oppenheimer Developing Markets Fund; Laura Geritz of Wasatchs Emerging Markets Small-Cap and International Opportunities funds; Robert Horrocks, chief investment officer of Matthews Asia; and Dara White, senior portfolio manager of the Columbia Emerging Markets fund (picks include BIDU, Compagnie Financiere Richemont, Minor International, Pigeon, VIPS);
Follow-up on Brazils recent presidential election suggests the countrys outlook may be better than most investors expect.
Tech Trader: Cautious on FB: Tiernan Ray questions how social site will continue to grow, and what its increased spending is going towards, noting chief financial officer Sheryl Sandberg has been vague about will drive up expenses to a rate of nearly double revenue growth; Company could buy an advertising startup such as Turn, which is said to be close to filing for an IPO, or FUEL.
Trader: Thomas Lee of Fundstrat Global Advisors says institutional investors remain cautious despite the market recovery; Cautious on FCAU: Automakers recent results have improved, but like all large players in the sector, it faces global headwinds, and for stock to rise next year markets in Europe and South Africa would have to improve; Positive on MTZ: Trends that will benefit infrastructure contractor particularly in wireless and fiber to the homeshould continue, prompting shares to rise 25% or more in the next 12-18 months.
Features: Positive on BID: Shares of auction house should continue to rise if the market remains strong and management, under pressure from activist investors such as Daniel Loeb, continues to implement shareholder-friendly changes; Positive on GLD, IAU, SLV, DBC, DJP, DBA, SGOL, GSG, USCI, RJII, PPLT, UNG: These 12 financial products are a solid way to play the commodities market, especially for investors who have little or no exposure to the sector; Cautious on JD: Chinese retailer is battling with rivals such as BABA, EBAY, and AMZN, but its strategy to cover all of China will require much heavier investment, while its mobile efforts are lacking; Positive on WBC: Company has parlayed its success in the truck-brake business into a range of new technologies, such as computerized systems that see obstacles, and shares could rise 60% in three years; Story reports on picks from participants in Barrons The Art of Successful Investing conference, including Scott Black (SWKS, SNX, AXAS), Ross Margolies (DAL, RJET), William Priest (AMAT, CVS, Safran), Oscar Schafer (ANIP, BERY), Meryl Witmer (NVGS, GPK), Marc Faber (IOI, Wilmar International).
Small Caps: Positive on STBZ: Atlanta-based bank has used a number of deals to build up one of the most attractive low-cost bases in Georgia, and is increasing its loan book.
Follow-Up: Positive on V, MA: Card payment networks could see upside from increased consumer spending and a slow, steady move away from cash transactions; Positive on SWK: Shares took a hit over worries about European growth and the dollars rise, but the damage seems mostly repaired and shares seem likely to resume their ascent; Positive BLT: Company is seeing increased demand and a strengthening market, and shares could rally by 25%.
Mutual Funds: Interview with Tom Schindler, Portfolio Manager, Diamond Hill Small Cap (top ten holdings: CAR, ROSE, STAR, HCC, NAVG, TRN, ALR, BPOP, DST, XEC).
European Trader: Europes banks could be worth a look after most passed long-awaited checks on their capital buffers, with firms such as Commerzbank and ING Groep passing easily.
Asian Trader: Hong Kong-Shanghai Connect program is not ready for prime time, and is fraught with trading issues and problematic custodian rules. Emerging Markets: Economic optimism about India is rising just as the halo surrounding Narendra Modi, its new, purportedly pro-business prime minister, is beginning to fade.
Streetwise: BMO Capital Markets strategist Brian Belski likes multi-line retailers and industries with high growth and cheap valuations, such as JWN, TGT, GT, and JCI.