Barron's summary: positive on GLW, LH; cautious on LC, ONDK
Cover story: Barron's looks at the field of 19 Republican presidential candidates and picks the strongest seven from among them, noting that though Marco Rubio and Ted Cruz will have staying power, the final contenders are likely to be Jeb Bush and Ohio governor John Kasich.
Features:
1) Positive on GLW: Company has a strong pipeline of new products-including glass for new 4K ultrahigh definition TVs, which could usher in a new era of technology-and $1.50 per share in net cash on the balance sheet;
2) Positive on LH: The second-largest U.S. medical-testing firm offers investors much to like as a shift toward specialty drugs drives companion medical tests, and company has better returns on invested capital than rival DGX;
3) Positive on GE, GMCR, CVX, NWL, BID, GM: Board members have lately been buying shares in company, which could be a sign for investors of upcoming deals or market events that will send shares up;
4) Cautious on LC, ONDK: Online lending firms, which have different models, remain unprofitable, and shares trade at multiples typical of Internet stocks, a sign investors may want to hold off for now.
Tech Trader: The next step forward in high-definition TV is so-called 4K technology, which promises even crisper pictures with greater detail; Networks and cable operators have been slow to offer content in the format, but NFLX, GOOG's YouTube, and other online streaming sites are stepping in; The technology "may mark a turning point in the cord-cutting pundits have long predicted," benefiting companies such as GLW and NVDA.
Trader: Most market strategists continue to believe the Fed will raise rates in September; Cash returns to investors through buybacks could hit $1T this year, according to Yardeni Research, nearly equal to all the operating earnings produced by S&P 500 companies; Positive on SBAC, AMT, CCI: Cellular-tower companies that transmit the majority of U.S. wireless data should benefit from DISH-TMUS tie-up.
Small Caps: Positive on IGT: Tie-up with Italy's Gtech should benefit both gaming companies and offer investors some benefits if the combined company restructures and expands its business.
Profile: Vassilis Dagioglu, portfolio manager, Dreyfus Dynamic Total Return fund, which uses income-producing investments to bolster capital gains for a higher total return; Dagioglu likes Germany and Japan, but is shoring the U.K. stock market.
Interview: Bo Knudsen, fund manager, Carnegie Asset Management (top picks: UNP, MCK, Fanuc, Keyence, Rakuten, Sensata Tech, HDFC).
Follow-Up: Positive on BKS: When company spins off its education division investors will see "an attractive business with good growth prospects that is buried inside the bookseller," with AMZN a potential suitor; Positive on TMUS: Barron's admits it made a wrong call on carrier, whose shares have returned nearly 41% since a cautious story last November.
European Trader: Positive on Clariant: Following a reboot, Swiss company "has a good formula for investment success" and an attractive growth profile; a takeover could offer investors a handsome windfall, but they stand to benefit even without one.
Asian Trader: Investors, including Paul Singer's Elliott Management, remain skeptical about the all-stock merger between Cheil Industries and Samsung C&T, with many observers suggesting there are few potential synergies.
Emerging Markets: With a number of international markets-including those in Brazil, Russia, China, Greece, and Turkey-in turmoil, currency remains the big wild card; "The spread between winners and losers in emerging markets is going to be wider than normal," says SCHW's Liz Ann Sonders.
Commodities: "Observers of the rice market worry that there could be a repeat of the food crisis of 2008. If there is, prices could soar from current depressed levels."
Streetwise: Cautious on C: Bank "stands out as the poster child for too-big-to-succeed," though it is aware of its problems and has been trimming down to transform itself.