Barron's Summary : Positive on TJX, GT, BEN, MSG, NBG; Cautious on EMC, NTAP, ALK
- Cover story: Barrons Midyear Roundtable includes picks from Mario Gabelli (Kinnevik, IFF, IPG, CHMT, WFT, MSG), Bill Gross (BBN, PDI, PFF), Scott Black (SMCI, PDCE), Brian Rogers (AMAT, CNX, NEM, CVC, PRMSX, AVP), Meryl Witmer (INGR, Tate & Lyle), Fred Hickey (long on gold, silver, AEM; short on IBM), Oscar Schafer (Maple Leaf Foods, RLD, AMRI), Abby Joseph Cohen (SIX, BMY, Beijing Originwater Technology, Beijing Water Business Doctor, easyJet), and Marc Faber (long on GDXJ, gold, platinum, China Life Insurance, TRUE Telecommunications Growth Infrastructure Fund, BTS Rail Mass Transit Growth Infrastructure Fund; short on South African rand; pair trade long on SCIF, short on IWM).
- Tech Trader: Cautious on EMC, NTAP: Tiernan Ray looks at small storage companies hoping to use flash drives or flash/disc drive combinations to upend storage giants; the upstarts include NMBL, Skyera, Tegile Systems, Maxta, and Nutanix.
- Trader: Positive on TJX: Retailer has been one of the best-performing in its sector since the recession, taking advantage of missteps by JCP and SHLD to gain market share, and it has significant room to expand its store base in coming years; Cautious on ALK: Though shares are up, carrier faces a major threat from rival DAL, which has been increasing flights to and from Seattle, and with gains already booked, investors might want to disembark.
- Features: Positive on GT: With auto sales booming in key North American, European, Middle Eastern, and African markets, shares could gain more than 50% within two years; Positive on BEN: Company has more than $8B in cash on its balance sheet, making it a ripe target for an activist investor to push for greater return of capital to shareholders; Positive on Tribune Company: Chicago-based broadcaster and publisher is largely overlooked by investors, but it has a number of valuable assets, and could see a 25% rise in share price if it sheds publishing business; Positive on ALTR, EA, LUV, TROW: Companies appear overpriced right now, but are likely to generate strong earnings growth over the next two years, catching up to their stock prices.
- Small Caps: Cautious on BIG: Shares have risen after chief David Campisis turnaround efforts, but while new strategy could generate more earnings growth, stock appears to reflect much of that potential, and investors may be best served by taking their money off the table; Cautious on QLTY: Tank-truck operator has reported big gains, but with markets strong and expectations high, now may be a good time for investors to take profits.
- Mutual Funds: Interview with Jason Brady, Portfolio Manager, Thornburg Strategic Income (top ten issuers: Mexican bonds, Acros Dorados Holdings, Samarco Mineracao, Prospect Capital, Dominos Pizza, Office Cherifien Des Phosphates, ABG Intermediate, Stena International, Affinion Group, Concord Funding).
- Follow-Up: Positive on MSG: Company has a market value of $4.5B and no debt, but shares could see a 75% boost if companys teams, such as the Knicks, are revalued following Steve Ballmers $2B for the Los Angeles Clippers; Jane Mendillo, who is stepping down as the head of Harvards endowment, leaves a mixed track record.
- European Trader: Positive on NBG: Banks American depository receipts and Athens-based shares dont reflect the progress it has made or its superior profile compared to other Greek banks.
- Asian Trader: Chinas mini-stimulus should be a boon to railway sector as country expands its already-impressive rail network (Positive on Zhuzhou CSR Times Electric, CSR, China CNR, China Railway Construction Corp., China Railway Group).
- Emerging Markets: Last weeks cut in the World Banks forecast for growth of 2014 emerging market GDP should tell investors the good times may not last.
- CEO Spotlight: IPG chief Michael Roth talks about current trends in advertising, and says Ads, using market-driven intelligence, must come together in real time as audiences form.
- Streetwise: The dollar seems to be starting another rally, but the effect of that on the market will depend on why the dollar climbs. - Source TradeTheNews.com