Barron's Summary: Positive on DELB.BE, DBS.SG, HPQ, NDAQ, BEAV, BBRG, Cautious on BRCM, Emerging markets and Sugar prices
- Cover Story: Discusses the evolution of indexing that has moved more towards attempts to beat the market as opposed to a low cost tracking of underlying performance by sector. As a result, many of the new 'indexes' may appear to beat the market, but have yet to be tested over full economic cycles.
- Tech trader: Cautious on BRCM as its large R&D spending recently has barely made a dent in the markets it sought to dominate. Highlights QCOM still dominates the space BRCM was attempting to enter. Overall positive on chip stocks as valuations are reasonable despite appreciation of 8%.
- Emerging Markets: Interview with a CIO of unit at Harris Associates calls emerging markets overvalued despite recent selloff. Feels prices are too high despite the fact he is a medium to long term bull on the space.
- Features:
1) Positive on HPQ for its reasonable valuation despite strong appreciation in the last year. Highlights cost controls and recent restructuring together with better customer experiences and higher employee morale.
2) Positive on BEAV as a benefactor of a stronger airline industry. Sees potential for shares to further appreciate over the coming year despite its recent rise of 50% in the last 12 months. Streetwise: Positive on NDAQ despite the worries raised by Michael Lewis' new book on high frequency trading. Despite a potential hit to revenue from a regulator crackdown, company likely could increase profit margins elsewhere along with furthering the diversification of its business units. Smallcaps: Positive on BBRG on valuation vs peers in light of weak performance following harsh winter hit zones. Sees likelihood of a same store sales rebound as harsh winter abates.
- DC Current: Cautions on holding stocks during the coming mid term election cycle. History suggests the market will suffer from May onwards as a result of likely political turbulence. - CEO Spotlight: CEO of Viacom Dauman. Piece lauds his academic and intellectual prowess, becoming useful in high stakes negotiations crucial to the ongoing success of the company in furthering its strength in the TV market.
- Barrons: Discusses study that finds entering 'unloved' market areas could allow for market outperformance over 3 year time horizon. Investors should consider purchasing Gold, commodities and high quality large company funds as they underperformed in 2013.
- International Trader: Positive on Delhaize given the trajectory of the restructuring plan and strong balance sheet. Valuation is below that of peers and it has the potential to be debt free by the end of 2015.
- Asia trader: Positive on DBS Group along with Singapore banking in general. Other large Singapore bank shares could weigh heavily following recent acquisitions but DBS is better poised to succeed as it is the best positioned to benefit from a rising interest rate environment.
- Commodities Corner: Sees potential for sugar prices to decline following a strong run up in prices on earlier concerns in Brazil. Sees likelihood that rains will help minimize any further damage to the crop.