Barrons weekend summary: positive on CF, SYMC, GG
Cover story: Barrons list of the 10 Best Dividend Stocks includes VZ, MET, ABBV, DOW, QCOM, CSCO, TGT, CCL, JPM, and USB, ranked by yield, from a high of 4.3% to a low of 2.4%; All shares trade below 17.5 times 2017 profit estimates and have payout ratios below 80%.
Tech Trader: Since he took the reins from Steve Jobs five years ago, AAPL chief Tim Cook has skillfully lead the company through a tumultuous period in the tech world, and nearly doubled revenue, but he needs to forge a stronger cloud-computing strategy.
Trader: If the Fed has been giving mixed signals, the market has exhibited contradictory reactions, but regardless of what the central bank does, the debate on fiscal stimulus should pick up ahead of the elections; Positive on PYPL: As the dominant player in the transaction space, company stands to benefit from the growing consumer preference for online and mobile payments; Many institutional investors are underweight on real estate, and changing that will bring new attention to REITs.
Advisor Rankings: Barrons list of the Top 100 Independent Financial Advisors for 2016 is topped by Fred Fern of Churchill Management Group, Ron Carson of Carson Wealth Management Group, and Spuds Powell of Kayne Anderson Rudnick Investment Management; Barrons inaugural list of the Top 20 Independent Advisory Firms is topped by Mariner Holdings, Creative Planning, and Edelman Financial Services.
Features: 1) Positive on CF: Though shares are down 57% this year amid a fertilizer glut, they could be a good play for contrarian investors because of an outsize yield and potential 20% upside; 2) Positive on SYMC: Shares havent moved much, but the acquisition of Blue Coat Systems, new leadership, and an advanced system to attack cyberthreats could boost shares 25% or more; 3) Positive on GG: Company has spent heavily to develop new mines in Canada and Argentina, invested more than $700M a year to improve operations, and new chief David Garofalo plans to cut costs and bolster cash flow.
Small Caps: Positive on TILE: Market leader in modular flooring has seen improved profit margins, which could pave the way for greater operating leverage and higher earnings once revenue rebounds.
Profile: Ben Segal, who runs the Neuberger Berman International Equity fund, looks for quality stocks with 50% upside (top 10 holdings: Keyence, SAP, Givaudan, Tecan Group, CHKP, TM, Insurance Australia Group, ASML Holding, NLSN, Bunzi).
Interview: Richard Greenfield of BTIG Research, an expert on the tech and media sectors, says DIS is a Sell and NFLX a Buy, and that traditional media companies are on the way to extinction.
Follow-Up: Cautious on MYL: The financial fallout from the EpiPen pricing controversy will be manageable, and shares look cheap, but since its unclear whether value will be unlocked or squandered, investors should sell; Cautious on Infineon: With shares now trading at the premium valuation they deserve, its time for investors to take their profits; Cautious on SIG: Jewelry company has cut costs and explored options for its in-house financing business, but that hasnt been enough to compensate for other troubles, and investors should cut their losses.
European Trader: Positive on Assa Abloy: Swedish lockmaker has used a mix of savvy deal making and technical innovation to transform itself into a leading player, and it should see more growth.
Asian Trader: The Bank of Japan isnt targeting the companies it probably wants to protect, notably banks and export-oriented automobile companies whose stocks have been slammed by negative interest rates and a soaring yen.
Emerging Markets: Investors should be wary of making long-term stock bets on Mexico, given the possibility Donald Trump could take the White House and damage the countrys status as a safe harbor.
Commodities; The fact that oat prices are so low by historical standards suggests a bounce is likely, and views on the grain are increasingly bullish.
Streetwise: Thomas Lee of Fundstrat sees a narrowing in credit spreads as a sign investors are willing to take more risk, a situation that could benefit small-cap stocks.