Barron's summary: Cover positive on Samsung; Positive feature on VFC; cautious on MBLY
Cover story: Positive on Samsung: Korean electronics giant "could be the world's cheapest mega-cap stock," but it isn't likely to remain so; Company has been out of favor with investors because of plunging profit in mobile phones, its largest business, leading to worry it could join BBRY and Nokia as another casualty in a competitive market, but to some observers shares look like AAPL's a year ago, before its rally, and investors buying now could see a 50% rally.
Feature: Positive on VFC: Company has gotten Timberland brand back on track and shares are cheaper than those of rivals NKE, LULU, and UA; strong free cash flow could allow it to make an acquisition such as Puma or ZQK, boosting shares 25%; Positive on PTC, SPLK, Thin Film Electronics, INTC: Companies stand to be potential winners in growing "Internet of Things" trend, with the number of network-connected devices expected to soar from three billion to 25 billion in the next seven years; Positive on BWA, DLPH, GNTX: Three companies' shares have taken a hit recently, but with earnings estimates rising they may be a bargain now for investors.
Tech Trader: Tiernan Ray says the recent spate of split-ups at tech companies such as HPQ, SYMC, EBAY, and JDSU shows many of them shouldn't have been in their current position in the first place, and that a "mess of M&A on the front end of the pipe" created problems.
Trader: Just one in five active fund managers is outperforming year-to-date, according to an October 9 report from Bank of America Merrill Lynch; Cautious on GE: Industrial giant is the worst performer in the DJIA this year, but though it isn't likely to top the market for some time, it offers bond-like stability with the earnings and dividend growth not possible in fixed-income securities; Cautious on MBLY: Company headquartered in Israel and domiciled in the Netherlands "is in the sweet spot of what's called the autonomous driving revolution," but faces issues that could affect growth rates, and its net income is also inflated by the policy of excluding stock compensation.
Follow-Up: With job market improving, oil prices down, and consumer confidence rising, the International Council of Shopping Centers predicts an increase in holiday spending (Positive on WMT, BLMN, PLKI; Cautious on SHLD, JCP); Positive on MU: Shares still look attractive despite recent drop, and demand for company's mobile DRAM should rise this year, especially if AAPL gives its new iPad a memory boost; Cautious on SCTY: Lower prices should attract more customers, but company will still have to prove its case to investors in coming quarters.
Mutual Funds: Interview with David Green, Portfolio Manager, Hotchkis & Wiley Value Opportunities (top ten holdings: AIG, DOOR, C, BAC, JPM, Direct Line Insurance, Danieli & C. Officine Meccaniche, ORCL, Nippon Electric Gas, Royal Mail); Interview with Bob Browne, Chief Investment Officer, Northern Trust, who says equities are more attractive in general than high-yield investment-grade bonds, Treasury inflation-protected securities, and cash.
European Trader: Positive on RIO: Even if tie-up with Glencore doesn't take place, mining giant's stock can climb 20% in the next 12 months, and M&A interest is just one reason to own shares.
Asian Trader: Investors should give Indonesia's new president, Joko Widodo, time to prove himself; Asian brokerage CLSA believes recent market declines present some opportunities (Positive on PT Indocement Tunggal Prakarsa Tbk, PT Tambang Batubara Bukit Asam, PT Bank Rakyat Indonesia, PT Bank Negara Indonesia).
Emerging Markets: In Brazilian presidential incumbent Dilma Rousseff wins the October 26 election, investors should expect pressure on Brazil's currency. Commodities Corner: The rally in zinc is just getting under way, and while futures have pulled back from three-year highs, price action has yet to run its course.
Streetwise: Cautious on KSS, CAG, WU, DGX: Companies in the Russell 1000 index look cheap but each has at least four potential red flags, such as poor accounting or slow growth, making them potential value traps