Barrons weekend summary: Positive cover story on new Ford CEO; positive on EV, IP
* Cover story: The appointment of Jim Hackett as chief executive at F is a sign the company has “run the numbers of the future of mobility-as-a-service and likes what it sees”; As Hackett implements a new strategy, shares should recover from their slide, shareholders could earn 30% in a year—and the automaker could outperform TSLA during the next five years.
* Features: 1) “Self-driving cars could hit showrooms within five years, and begin to dominate the roads in as few as 15,” rendering entire professions obsolete, reducing the need for parking spots, and changing the power distribution sector; 2) Positive on EV: Firm’s so-called laddered municipal-bond portfolios are proving popular with investors, helped by decent returns and favorable tax treatment; 3) Positive on IP: The packaging and paper company has seen a surge in free-cash flow and offers a steadily rising dividend; shares could go up another 25% this year; 4) Profile of CLSA strategist Matthew Sigel, who produces the popular Hello Investors newsletter, which explores market-related themes and offers investment recommendations.
* Tech Trader: The billion-dollar mark is an important milestone for smaller tech companies, one investors should pay attention to when looking for the next superstars; companies that have hit the threshold or could soon do so include ANET, PSTG, VEEV, FEYE, SPLK, BOX, TEAM.
* Trader: Economic strength in German and Japan could limit the size of drops in the U.S. market, says strategist Jim Paulsen, even if payrolls disappoint; Cautious on FL: Cracks are appearing in the former growth stock as online shopping grows and mall traffic wanes, and a boom in high-end basketball sneakers ends; Positive on CROX: Fears about AMZN shouldn’t trump the fact that there is demand for the company’s products, and that it continues to streamline its operations.
* Interview: Sam Pollock, chief executive of Brookfield Infrastructure Partners, is excited about the long-term prospects for infrastructure investing and sees opportunities in developing markets and the telecom sector.
* Mutual Funds: 1) Adam Karr, manager of the Orbis Global Equity fund, tries to deliver alpha and make sure incentives are aligned (top five holdings: XPO, Sberbank of Russia, ANTM, APA, CHTR); Global currencies are rebounding, and this could be a good time for investors to scoop up a foreign-currency fund on the cheap; 3) Bill Ackman of Pershing Square says hedge funds should produce high returns—and if they don’t, +should compromise on fees.
* Follow-Up: Positive on YHOO: Shares still look inexpensive, with the company expected to monetize its key assets—including its BABA stake—after the VZ deal closes; Positive on MCK: Company’s comeback should continue as branded and generic drug prices stabilize in the pharma industry.
* European Trader: Cautious on BMW: Investors’ concerns about the broader auto industry may be dragging down shares of the German automaker, which continues to invest in R&D, personnel, and infotech.
* Asian Trader: Cautious on Cathay Pacific Airways: The carrier’s challenges mirror those of the Hong Kong economy, and instead of focusing on service, it should enter the low-cost market.
* Emerging Markets: Picks from Richard Schmidt, co-manager of the Harding Loevner Emerging Markets portfolio include Tencent Holdings, BIDU, JD, AIA Group, and Sberbank Rossia.
* Commodities: The market for orange juice from frozen concentrate has been in a long-term decline, and prices could fall further.
* Streetwise: Positive on CUTR: Shares of $330M company that makes laser treatments for removing unwanted hair have more than doubled in eight months to fetch 50 times 2017 profits.