Barron's summary: Positive on AXP, AAPL, BABA, LRCX; Cautious on SBUX, QCOM
Cover story: Positive on AXP: Card company has expanded merchant relationships, is reaching more customers with new offerings, and has more detailed information on customers spending habits than rivals MA and V, which can be used to enhance rewards program and corporate partnerships; With AAPLs new payment system to help it chip away at cash purchases, shares could surge 30%.
Tech Trader: Positive on AAPL: Tiernan Ray says those who believe company is in a downward spiral are likely to be proven wrong; New iPhone 6 models should sell well despite saturated smartphone sector, and the Apple Watchthough not as of yet a must-have itemis an innovative device with software rivals have yet to match; Gains in the near term may be slight, but the business looks as good as it ever has.
Trader: The market seems certain to focus on the Feds news conference on Wednesday after the open-market committee meeting; Positive on PFE: Stock may now be too cheap; for all the gloom about drug makers pipeline, it has some interesting new products, and shares look good for the conservative investors but also as ballast for an aggressive portfolio; Cautious on SBUX: Coffee giant may be losing its luster after a six-year turnaround, says Hedgeye Risk Managements Howard Penney, who thinks diversification away from core business and increased complexity will slow store throughput.
Features: Positive on BABA: Company should see ample demand when it goes public due to high growth, strong profitability, a huge market opportunity, and a reasonable valuation, and shares are likely to rise 20% from a likely initial price of $66; Positive on LRCX: Company whose key products include deposition and etching machines that turn silicon wafers into integrated circuits is gaining market share despite growing competition, and shares could return 20% in a year; Positive on BPOP: Shares of Puerto Ricos biggest bank are dirt cheap because of the islands woes, but it paid back its TARP funds, boasts strong capital returns, and could revive its dividend; Positive on VTR: One of the nations largest healthcare REITs has a diverse portfolio and stands to benefit from rising healthcare spending and expected surge in senior population; shares have a 4.7% yield and could see a 25% gain; Republican Senate leader Mitch McConnell is fighting to hold onto his seat in a surprising and costly race that could determine which party controls the Senate.
Small Caps: Positive on PFS: Bank has a solid balance sheet with plenty of excess capital, and in addition to paying a dividend could use cash for buybacks or to make an acquisition; using a P/E metric, shares look reasonably priced.
Mutual Funds: Interview with Mark Finn, Manager, T. Rowe Price Value Fund (top ten picks: GE, AAL, JPM, PSX, MRK, PFE, TMO, MET, C, JNJ); Interview with Kurt Feuerman, Chief Investment Officer, AllianceBernstein Select Equity Portfolios (top picks: AXP, EMC, VZ, WFC).
European Trader: Positive on Swatch: Shares could rise by 20% in the next 12 months as foreign exchange rates swing in its favor, the company rebounds from a parts-factory fire, and is distances itself from events that resulted in nonrecurring costs.
Asian Trader: Cautious on QCOM: Challenges are far from over in China even if Chinese authorities drop fines related to licensing practices, since company is likely to lose market share as country tries to develop a domestic semiconductor business. Emerging Markets: Smart investors should be looking for mispriced Brazil assets in anticipation of political change and economic reform in the country.
Commodities: Gold has lost its luster as investors anticipate a rise in interest rates, and demand from Asia isnt likely to boost prices.
Follow-Up; Positive on AMGN: Shares should still see gains of a more subdued 10-15%, though they remain an attractive way into the pricey biotech sector; Positive on ALL: Insurer continues to outperform the industry and generates favorable cash flow and attractive returns, and shares are a bargain for now, says Robert Glasspiegel of Janney Capital Markets.