Barron's Summary: Positive on DIS, BRCM, DRI, UPS; Cautious on TRN, GBX, ARII
Cover story: Positive on DIS: Though companys latest film, Tomorrowland, wont likely be a blockbuster and could lead to a write-down, this is still a good time to buy shares, which could rise another 50% during the next three years as chief Robert Iger prepares to hand over the reins to a successor; Disney has far more merchandise deals than rivals such as VIA, TWX, and DWA, a source of additional strength.
Technology Trader: BRCM is a gold-plated asset in the chip market willing to forsake future price appreciation to cash out; the tie-up with AVGO is a sign asset prices probably have hit a level insiders consider to be about as good as it can get; On another front, China is willing to pay for its ambition in technology, a new factor in higher-priced deals.
Trader: Few expect a rate hike in June, but the Fed could act as soon as September, which could keep the market on edge past Labor Day; Positive on DRI: Texas-based homebuilder remains an attractive choice for investors because of its wide range of price points and below-average valuation; Cautious on TRN, GBX, ARII: Freight railroad car builders have profited from the surge in U.S. oil production over the past five years, but there are worries that with the boom ending they could see a slowdown.
Features: 1) Positive on UPS: Delivery company seems to have moved past the damage to its reputation from the 2013 holiday season, and continues to cut costs and improve operations to deal with changes stemming from growth in online shopping; 2) Positive on NUE: Shares have taken a hit from rising steel imports and falling prices, but they could rebound as company cuts costs and diversifies into a higher-end product; 3) Excerpt from William Greens The Great Minds of Investing, which looks at how top players in finance have found lasting success.
Small Caps: Positive on DORM: Auto parts manufacturer has a strong niche in a competitive market, a reputation for quality, and shares look attractive at a recent $47.
Interview: Jeffrey Saut, chief investment strategist at Raymond James, says the S&P 500 could double to 4,300 within nine years.
Follow-Up: Europes economic recovery is finally gaining strength, fueling optimism about the regions longer-term prospects, with GDP forecast to grow 1.5% this year and 2.1% next year; Positive on TERP: YieldCo registered by SUNE has done better then some observers expected, a sign this form of tax strategy seems to be working.
European Trader: Positive on MHG: Norwegian seafood producers shares are cheap, and company pays a dividend yield of more than 5% which could be closer to 6% this year.
Asian Trader: Negative on Evergrande Real Estate: Recent share-price drop is not a buying opportunity, investors should remain wary of the stock, which could fall another 50% or more.
Emerging Markets: Turkey may seem like an opportunity for investors who have moved on from China, but theres good reason to remain cautious because of the countrys political and economic problems;
Commodities: The rally in oil prices is likely coming to an end, and with pressure coming from steady U.S. output, rising OPEC production, and a stronger dollar.CEO Spotlight: INGR chief executive Ilene Gordon has turned the company into a global producer of high-value specialty food starches with a focus on gluten-free, fat-free, nongenetically modified, and other wholesome products.
Streetwise: 2015 could still be a banner year for large-company funds; Positive on KATE: Concerns that led to a share plunge last month may be overblown, because the handbag makers growth trajectory remains unchanged.