summary: Positive on MS, DHR, ODP, EOG; cautious on LMT, NOC, RTN
- Cover story: Positive on MS: Bank has changed from a run-and-gun investment bank and trading house with a midsize wealth management arm to a financial services company split almost evenly between retail brokerage and trading and managing capital for companies and institutions, which may be the new model for Wall Street success.
- Features: Cautious on LMT, NOC, RTN: Defense companies could take a hit from cutbacks in government spending as money is channeled into growing medical and disability benefits for returning soldiers; Positive on DHR: Companys shares could rise nearly 20%, to $95, if its able to lift its acquisitions activity and if units such as water treatment, petroleum services, and medical diagnostics gain ground; Positive on ODP: Shares could see a 50% boost amid ongoing cost-savings efforts and a likely growth in sales as retailer focuses on its strong North American business; Positive on EOG: If surge in crude-oil production continues, exploration and production company could see a 32% jump in earnings this year.
- Tech Trader: Positive on AAPL: Tiernan Ray says company is likely to see a massive number of customers upgrade to the iPhone 7, which could have a larger screen, and that an iWatch could produce $3.6B in additional annual profit, or about $4/share.
- Trader: In spite of the spring rotation out of biotech and momentum shares, the broad market has been resilient, says Marc Pado, CEO of Dow Bull Advisors; Cautious on VRX: Though Wall Street loves the pharma giant, investors should look carefully at its results under GAAP to get a true picture of how its acquisitions strategy makes it seem more profitable than it is; Cautious on JE: Investors should focus on the declining customer net adds in companys core energy-market business; unless growth rate picks up, company could be in a bind, and for now shares arent worth the gamble.
- Small Caps: Positive on BCC: Company is in solid financial shape, with net debt of $216M and expected free cash flow this year, and a buyback or dividend will likely boost the stock.
- Mutual Funds: Interview with Frank Greywitt III and Manoj Patel, Managers, DWS RREEF Global Infrastructure (top ten holdings: AMT, National Grid, TransCanada, Enbridge, CCI, SE, Pembina Pipeline, SRE, SES, Atlantia); Interview with Michael Hasenstab, Chief Investment Officer, Franklin Templeton, who says Slivers of Chinas banking system are toxic, but its unlikely well see a systemic collapse.
- Follow-Up: Cautious on TMUS: Telecom has done well by changing the way people buy smartphones, but the big question remains whether merger with Sprint will go through; Positive on BNP Paribas: Though penalties for breaking U.S. sanctions have tarnished banks outlook, it is still attractive, and worst-case scenario appears priced into stock, which could see 15-20% gains in 2015.
- European Trader: Banks are potential winners following latest ECB prescriptions for growth (Positive on Credit Agricole, ING Groep, Erste Group Bank); Automakers Volkswagen and Daimler look like good values, and should each seen growth this year. Asian Trader: Japans economy may not be booming, but its growing, and corporations are using their cash to reward shareholders (Positive on Softbank, Panasonic).
- Emerging Markets: Perus commodity-rich stock market fell sharply in March as copper prices dropped, but it has begun to battle back, and as one of South Americas most consistent growth engines is a better place than Brazil for investors.
- Commodities: Cotton industry faces a problem as more apparel makers, fed up with high prices, move to man-made fibers such as polyester and rayon. Streetwise: Citigroupss Steven Englander says the Fed, fearful of damaging a still-fragile economy, may use volatility as a policy tool by creating uncertainty around the path to higher rates.
- Special Report: Barrons list of the Top 100 Women Financial Advisors, led by Karen McDonald of Morgan Stanley, Susan Kaplan of Kaplan Financial Services, and Rebecca Rothstein of Merrill Lynch PBIG.