Barron’s summary: cautious cover story on Zillow (Z); positive on TEX
Cover story is negative on Z, noting its merger with TRLA isnt the sure winner bulls contend; The two companies havent monetized much of their Web traffic, and get just a sliver of real estate advertising dollars, and both have been offering deep ad discounts to real estate chains; Its far from clear the merged Zillow-Trulia will grow revenues enough to match their puffed-up market values.
Features: Positive on TWX, COV, SHPG, TMUS, WAG: Shares of these five companies are down because of aborted plans for mergers or inversions, giving investors a good opportunity to find bargains; Positive on TEX: Maker of cranes and other large machines is benefitting from pickup in big construction jobs, improved efficiency, strong position in port business, and its cheap shares could see a 30% boost in next 12 months.
Tech Trader: Tiernan Ray reports on the growing popularity of the so-called yieldco, a spinoff of renewable-energy companies, principally solar-power outfits, that is supposed to offer a solid dividend supported by stable cash flows and a high payout ratio, a good example being SUNEs spinoff of TERP; FSLR may also make a similar move.
Trader: There is ongoing debate about whether the correction that many expect is on the horizon; Cautious on PG: Company must show some relatively large brand dispositions in thie next six months if the stock is to advanve, says Michael McCormick of Bahl & Gaynor; Once political heat about inversions cools off, they are likely to pick up again, especially at companies whose foreign sales are a large portion of total revenue, such as ALXN, IPG, JCI, OI, and MON.
Small Caps: Positive on STL: After merger with Providient New York Bancorp, firm is well-positioned to boost its customer base and cut costs, and shares could climb 20% or more.
Special Report: 2014 MLP Roundtable features input from Becca Followil, U.S. Capital Advisors; Doug Rachlin, Neuberger Berman; Tim Fenn, Latham & Watkins; Michael Blum, Wells Fargo (positive on AHGP, ETE, EPD, EQM, MWE, RGP, TEP).
Mutual Funds: Interview with Harold Levy and Eric Stone, Portfolio Managers, First Eagle Fund of America (top ten holdings: EMN, HPQ, STX, PBI, CAR, OXY, WYN, ROC, VRX, GRA); Interview with Nick Heymann, Multi-Industry Analyst, William Blair, who seeks companies that can capture growth principally in emerging markets (top picks: GE, DOV, ADT, Bombardier).
Follow-Up: Cautious on GCI: Spinoff of news division from broadcasting core is already priced into the stock, investors should consider cashing out and buying a pure-play local broadcaster such as SBGI or NXST; Positive on INTC: Chipmaker seems to be coping with its problems better than rivals, leading shares to rise and creating potential for more upside.
European Trader: Positive on DS Smith (SMDS.UK): U.K. based packaging company may look like a staid paper supplier, but underneath its a high-value consumer-products concern, and shares could command a positive re-rating as a transformation becomes more apparent and investors catch on."
Asian Trader: New rules mean Hong Kong investors will soon be able to invest in 568 of the most liquid A-share stocks, while Chinese buyers will be able to trade 266 Hong Kong H shares, benefiting companies like Sands China that Chinese investors havent previously been able to buy.
Emerging Markets: Emerging market sentiment is increasingly fragile, with Russia a key source of instability; A move by MSCI to drop state-owned Sberbank and VTB Bank from MSCI Russia could lead to big outflows.
Commodities: Current bets on sugar are an indication the three-year stretch when it was cheap and plentiful in the global market is coming to an end. CEO Spotlight: Profile of URI chief Michael Kneeland says is overhaul of company is one of the great stories of post-industrial America.
Streetwise: Cautious on VRX: Many of companys drugsincluding its second-largest product, the antidepressant Wellbutrin and its sixth-largest, Solodyn, an antibiotic used to treat acneface strong generic competition.