Barron's summary
Cover story: The economy is growing on several fronts, but real estate is showing signs of a slowdown; Strong job growth, falling unemployment, ultralow mortgage rates, and encouraging consumer confidence figures havent been enough to boost monthly sales of existing homes, a sign the housing market may be near its peak.
Special Report: Barrons list of The Top 100 Financial Advisors, led by Greg Vaughan, Brian Pfeifler, and Andy Chase of Morgan Stanley PWM, Mark Curtis of Graystone Consulting, and Jeff Erdmann of Merrill Lynch PGIG.
Tech Trader: Cautious on SNDK: Chip makers recent revenue miss seems less tied to shifting industry paradigms than to company problems, which many analysts say are temporary; Cautious on CRM, N, SAAS, FEYE, LPSN, MKTO, BCOV, AMBR: Many software-as-a-service firms have large valuations, but the sector is likely to face a reckoning at some point this year; Cautious on AMD: Companys transformation from being PC-centric to a maker of custom chips for numerous devices seems to lack momentum.
Trader: Earnings will be weaker than expected this season because of U.S. macroeconomic data, says Tim Ghriskey of Solaris Asset Management; Cautious on IBM: Company is seen as a dinosaur in some quarters, but its cloud business is growing, a new server cycle isnt yet priced into the stock, and its P/E multiple is appealing; Active managers have had a bad time of it, with only one out of five outperforming last year.
Features: 1) Positive on ADM, ALV, DG, KR, LRCX, PCAR: Six companies have resisted the temptation to spend on dividends and buybacks, and are instead investing in growth, making them solid buy-and-hold picks; Positive on URI: Share price has been hit by investor concern about low oil prices, but company has deep customer relationships outside oil and shares could see a 50% boost; Positive on INT: The collapse of Danish fuel supplier O.W. Bunker prompted concern about Florida-based company, but it is likely to avoid the problems that sank its rival, and shares could gain 15% despite sector volatility.
Small Caps: Positive on LXU: Company could increase value by splitting its fertilizer, industrial acids, and mine explosive business from its HVAC side, but even without restructuring, shares could rise 10% on better earnings.
Profile: Larry Auriana, Hans Utsch, Portfolio Managers, Federated Kaufmann Large Cap fund (top ten holdings: INCY, NXPI, TEL, ACT, AIG, AAPL, GILD, PXD, BIIB).
Follow-Up: Cautious on SNE: Japanese consumer electronics giant is still undergoing a turnaround, with chief Kenichiro Yoshida investing in key profit drivers such as imaging chips, PlayStation, movies, and music; Cautious on NFLX: Investors should be cautious about stock, since its unclear how much longer it can keep boosting spending for original content, for which it doesnt disclose viewership.
European Trader: Positive on Telecom Italia: Company has had a good run this year, and could be the best-value large-cap telecom play in Europe if it continues to benefit from consolidation and successfully refinances its debt.
Asian Trader: On a price-to-book basis, Korea is 40% cheaper than Japan, and prospects for Korean firms is brightening.
Emerging Markets: The elephant in the room for emerging markets is credit risk. Some big companies are overleveraged. As a result, currency volatility could create liquidity and solvency issues.
Commodities: Crude stockpiles will most likely continue to grow in coming weeks, pressuring U.S. oil prices.
CEO Spotlight: AN Chief Executive Mike Jackson has been leveraging positive trends in the auto industry, and he plans to acquire more strategically located dealerships.
Streetwise: Cautious on VIRT: Investors appear to have put their misgivings about high-frequency trading aside, giving firm a boost following its IPO, but potential regulatory changes should give them pause.