Barron's Summary: Positive on KMB, GE, AIG; Negative HLF, SHLd
- Cover story: Poll of 152 institutional investors reveal their sentiment on current US market conditions. Still see room for stocks to grow but not as bullish as last years poll. Positive on KMB: seen as a big, well run company with decent growth prospects and steady dividends. Positive on GE: favorite stock of money managers; (Positive on BAC,C) at 9 times 2015 estimated earnings are simply too cheap to ignore. Managers are positive on KO, CLX, MCD, AAPL, BRKA; undecided on FB, AMZN, TWTR, CMG; Negative on HLF, SHLD. p. 25;
- Tech Trader: Looks at companies that recently reported earnings and how sentiment plays a big part in their current and future value. Even though FB reported solid 72% growth in revenue, as new users join the fold Facebook will find it harder to deliver ad revenue in the future. AMZN stock continues to suffer as sentiment seems to be souring and sales growth was expected to accelerate, not slow down. AAPL, despite just a 5% growth in revenue last quarter, continues to profit from sales of older iPhones and fierce loyalty to the company. p. 21;
- Trader: Coupled with the Ukraine crisis, valuation concerns that have gripped the markets returned friday. Utilities sector has been the best performer this year up 13%; Mixed on LNKD: Costs are rising as fast as their revenue. Valuation embeds significant future profit growth, so slowing growth should be of great concern to investors, p M4; Positive on ZTS: Offers a solid business with pricing power and good financial characteristics, p. M5;
- Features: 1). Positive on AIG: Still looking to regain investor confidence, AIG could be poised to grow in the near term. Trapped capital related to past expenses are due to be released and can be put to profitable use which could possibly result in doubling the stock price in the next 5 years, p.17; 2). Positive on PFE: Will be splitting into three companies in 2017. Two will be growth companies and the other will be its global established pharmaceutical division which will sell drugs that have lost or soon will lose patent protection, p.19; 3). Positive on TLW.UK: Though the company has had a few setbacks in the last couple years due to drilling disappointments and cost concerns, the company shares look to grow by 25% if they can get support from other partners. (Positive on APC, TOT, CEO), p.20;
- Small Caps: Positive on TRIB: medical testing equipment maker thinks they can sell 460 of the $25,000 diabetes testing machines this year and 600 in 2015. Also looking to gain from a drug thats currently in trials and nearing FDA approval. p. 40; - Follow-Up: Positive on AAPL: Shares could continue to rise as an aggressive share repurchase program coupled with strong iphone sales have the tech giant back on the upswing; Positive on SRPT: had a huge week due to a FDA reversal which allowed their Duchenne muscular dystrophy drug from accelerated approval; p.14;
- European Trader: Positive on NVS, GSK: Both companies will benefit greatly from a deal in which Novartis agreed to buy GlaxoSmithKlines cancer drug business for as much as $16 billion and in return, GlaxoSmithKline said it would pay as much as $7.1 billion for Novartiss vaccine business. The companies will also combine Novartiss over-the-counter pharmaceutical business with Glaxos consumer drug business; p. M6;
- Asian Trader: As economic growth picks up in Aisa, exports are starting to grow and small companies are likely to benefit. (Positive on PChome Online, Gujarat Pipavav Port (India), GS Home Shopping Network, Playmates Toys), p. M7;
- Emerging Markets: Without improving fundamentals, emerging market stocks and rtfs continue to stay low and value and price action arent enough reason to justify more exposure. (Negative on China Railway Group, China Railwy Construction), p. M7;
- Commodities: Silver prices continue to struggle as bountiful supply outpace demand. It may gain in price though if gold prices rise and take silver along for the ride, p. M11;
- Streetwise: The fact that the S&P has managed to stay in positive territory to start off the year suggests the rally in stocks may still have momentum as the calendar turns to the 2nd half of the year. (Positive on AAPL, JPM, CVX), p. 9;