Barrons Saturday summary: positive on FBHS, CFG, PCAR, PCP, PVH, WDC. KORS; cautious on TRX
Cover story: Barron's 11th annual list of the world's 30 best chief executives includes a number of new names, including Tim Cook of AAPL, Robert Iger of DIS, Terry Lundgren of M, Sergio Marchionne of Fiat Chrysler, and Kevin Plank of UA; AMZN's Jeff Bezos got bumped amid doubts about his ability to convert sales in to profits, while TSLA chief Elon Musk has yet to make the list.
Features: 1) Positive on FBHS: Maker of faucets, cabinets, doors, and security systems should get a boost from a stronger housing and remodeling market, and shares could see 30% upside; 2) Positive on PCAR, PCP, PVH, WDC: Investors have sold off shares in these four companies, which all have global businesses and contracting forward P/E ratios, based on currency risks, creating a buying opportunity; 3) Positive on CFG: New England bank, once a unit of RBS, is gaining strength now that it is on its own, and the stock could return 30% as firm bulks up in businesses from wealth management to commercial lending.
Trader: "For the near term, the market will be in limbo, as first-quarter earnings reports don't begin for three weeks and the economic data calendar is relatively sparse until then"; Positive on KORS: Company "continues to show exemplary growth, its shares are cheaper than competitors', and its products enjoy great brand recognition"; The U.S. market was supposed to be strong this year amid troubles in Europe, but "equity-friendly conditions elsewhere in the world could foster more U.S. underperformance"; Negative on TRX: Shares should continue to face pressure, as company still has no proven gold resources and there are doubts about its ability to continue operating.Tech
Trader: Cautious on DDD, SSYS, XONE: Tiernan Ray says expectations have always been high for this group, and while shares are down, they still aren't cheap because of the difficulty of building scale in the sector, which is still innovating and evolving basic techniques; One of these companies could eventually become a target for AMZN, GOOG, or MSFT.
Small Caps: Positive on SBCF: Shares of Florida-based bank--with $3B in assets and leading market share in a number of areas--look inexpensive, and firm could be a potential acquisition for a larger bank seeking to expand in the state.Profile: Anindya Chatterjee, portfolio manager, City National Rochdale Emerging Markets fund, who likes stocks with a P/E growth ratio of less than 1.0 (top ten picks: Great Wall Motor, ICICI Bank, Tencent Holdings, NagaCorp, Ping An Insurance, Sunny Optical Tech, Sunac China Holding, China Pioneer Pharma, Emami, BIDU).
Interview: Scott Minerd, global chief investment officer at Guggenheim Investments, who says the liftoff of rates by the Fed is a major consideration, along with how markets will react.
Follow-Up: "Barron's has been forecasting an average price on West Texas Intermediate in 2015 of $55, an average target that now has risks on the downside"; With years of little or no growth, the PC market looks dire even to bulls, affecting INTC's future.
European Trader: Positive on Sunrise Communications Group: Shares of Switzerland's No. 2 telecom have risen 20% since their February IPO and could rise 20% more during the next 12 months.
Asian Trader: Japanese equities "are finally becoming something more than a yen-driven trader" amid changes in the country's corporate culture championed by prime minister Shinzo Abe.
Emerging Markets: Finding value in Russian stocks is difficult, given the country's economic, political, and military challenges, but YNDX, the largest Russian Internet search company, stands out; Positive on BP, GE: Companies stand to gain from Egypt's planned infrastructure rollout.
Commodities: A stronger dollar is making it harder for U.S. hog farmers to sell their output abroad and easier for foreign operations to sell here.
Streetwise: Cautious on GM: Morgan Stanley analyst Adam Jonas says automaker's buybacks may boost short-term returns, but he worries about the long-term impact of the decision for a business too tied to the economy.