Barron's Summary: Positive on CVS, Nestle, HSBC, AAL, EPL, NPO
Cover Story: Applied Global Macro Research takes contrarian view in light of tough winter weather in the US; forecasting growth near 4% in what they feel may be the strongest economy since the latter part of 1990s.
Features: Calls for caution in the MLP craze. Following a rush for energy firms to convert, the asset class' performance has waned recently. Investors may want to consider being firm selective.
2) Positive on CVS decision to halt tobacco sales. Sees the move as potentially driving more profit than it will lose from ending the practice.
3) Positive on AAL: Cites money managers who feel the stock is cheap despite its strong appreciation following the merger close. Expecting some struggles in the near term as expected, but the firm should come out ahead given the strong management team.
4) Positive on NPO: Sees recent case win highlighting plaintiff misrepresentations in Asbestos litigation as providing a positive opportunity for the stock.
Tech Trader: Comcast acquisition of TWC, which is likely to be approved despite a number of issues, broadly indicates an end to the notion that cable has been greatly devalued by so-called over-the-top video offerings from NFLX, AMZN, Aereo, and others; Justice Department will likely look closely at Comcasts role as a gatekeeper, and its ability to potentially tax companies who need its pipeline to reach users; Comcast executives say strength of content providers such as ESPN or the NFL Network will limit its leverage.
Trader: The market is discounting soft economic numbers, says Joseph Amato of Neuberger Berman, but new data coming next week should clarify where the economy is going; Positive on LMCA: Battle for TWC has distracted the market from companys undervalued shares, which have been hurt by investor concern about what a CHTR deal for TWC might have required, but for now theres a cushion of safety for investors; Cautious on SJM: Though gross margins rose on lower commodity prices, company still faces challenges; with shares down, relative value to peers and the market has become attractive, especially for investors with a long-term value bent.
Follow-Up: Positive on Comcast: Despite the growth of streaming companies such as NFLX, cable users arent cutting the cord; acquisition of TWC makes sense, since a larger entity will have more leverage in negotiating with programmers; Positive onOXY: Company will likely continue to shed assets as it refashions itself to boost shareholder returns, share price could jump 25% after spinoff of California businesses.
International Trader: Positive on Nestle: Sees the stock as an attractive buy, especially following the divestiture of some of its stake in L'Oreal. - Positive on HSBC: Highlights the firms strong diversification worldwide positioning the company to benefit from a trend towards higher interest rates.
Emerging Markets: Positive on the stock market in China. Highlights that the Hang Seng has suffered deeply since the end of last year, and that many China stocks could be very cheap and poised for appreciation.
Commodities: Expecting the dry bulk sector and freight futures as a whole to rise due to the expected strong demand from China for raw materials.
Small Caps: Expecting EPL to provide an opportunity given its recent underperformance and the expectations for it to increase production this year.