Barrons Summary: positive on MAT, MU
Cover story: Barron's calls Donald Trump a "Teflon presidential candidate," and reports on a 1990s incident in which he unleashed a personal attack on Janney Montgomery Scott gaming-securities analyst Marvin Roffman because of negative statements made about Trump's Taj Mahal casino, an action the editors feel negatively reflects on Trump's character.
Features: 1) Asian experts Paul Chan of Invesco, Ronald Chan of Chartwell Capital, Louis-Vincent Gave of Gavekal Capital, and Erwin Sanft of Macquarie Securities discuss opportunities in Asia following the region's market correction (Positive on CSOP FTSE China A50, Hang Seng H-Share, Industrial & Commercial Bank of China, Bank of China, Ping An Insurance, China Life Insurance, AIA Group, Hui Xian); 2) Positive on MAT: Company, which is releasing a high-tech version of its popular Barbie doll, could see its stock rebound to $30 in a year for a gain of 35% without dividends of 40% with them; 3) Positive on RJF: Market turmoil has hit shares of the midsize brokerage, but it has attractions few competitors can match, and shares could rally from a recent $51 to the low $60s; 4) Positive on MU: Stock has lost nearly half its value during the past year, but company's next-gen 3D NAND flash memory chips for smartphones and tablets should give it a boost, and shares could gain 60% in the next year.
Trader: The market's direction is likely to take its cue from earnings, says Dan Greenhaus of BTIG, and investors "will be listening closely to what executives say about the tenor of their businesses"; Positive on JAZZ: Recent drop in share price could be an opportunity for investors to acquire a fast-growing pharma company at a reasonable price; "Based on long-term trends in strategists' equity allocations, stocks are setting up to rally, according to Merrill Lynch's Sell Side indicator."
Small Caps: Cautious on ESL: Maker of cockpit communication systems and controls has seen lighter orders because of a weak defense environment, lower oil prices, and a strong dollar, but its strategy still looks intact and it has high-quality franchises.
Profile: Val de Vassal, portfolio manager, Glenmede Large Cap Core, screens stocks for positive factors as well as weak spots such as idiosyncratic risk, stock liquidity, insider selling, and volatility (top ten holdings: NVDA, ESV, CAM, AGN, LYB, ARW, SWKS, MYL, STX).
European Trader: Cautious on SABMiller: Should BUD's takeover attempt succeed, shareholders "could soon collect a mouth-watering premium," though if the deal falls through shares are likely to drop below where they traded before the bid was announced.
Asian Trader: "Even if Asian stocks stick within narrow ranges, markets will be calmer, because Beijing doesn't want drama right now."
Emerging Markets: For emerging market companies that don't produce dollar revenues and have weak currencies, rising debt costs could become unmanageable.
Commodities: "The long rout in the coffee market may finally be over. But its recovery probably is temporary, as more clouds gather on the horizon."