Barrons weekend summary: positive on GM, ADNT, ANTM; Cautious on HES
* Cover story: Donald Trump’s two sides—the traditional Republican seeking lower taxes and fewer regulations and the disruptor who has little regard for political etiquette and mainstream ideas—are clashing, resulting in a grab bag of good, bad, and disastrous proposals.
* Tech Trader: One of the features of the next AAPL iPhone is likely to be a single curving piece of glass encircling the device from front to back, a move that could boost AMAT, OLED, GLW, Samsung, and LPL.
* Trader: The market has been willing to wait for Donald Trump’s pro-business initiatives to kick in as long as the economy keeps going strong; Positive on HD: Profits have topped Wall Street forecasts for eight quarters in a row, and there is no sign the winning streak is set to end; Continued cost-cutting, deleveraging, and a focus on asset allocation are good reasons for optimism at ABX. Profile: Lisa Welch, manager of the John Hancock Regional Bank fund, uses a long-term approach with low portfolio turnover and extensive research (top 10 holdings: USB, PNC, STI, JPM, KEY, MTB, BBT, BAC, CFG, CMA).
* Interview: Joseph Edelman, founder of Perceptive Advisors, looks for future winners among small-cap and mid-cap biotechs (picks: VSAR, SRPT, GBT).
* Features: 1) Positive on GM: Automaker’s business is so strong that some investors fear the company may be peaking, though its sale of Opel to PSA Group could drive shares higher by 35% and free up $1B in yearly cash; 2) Cautious on HES: Company’s massive overhaul during the past five years has made it more efficient, prompting some investors to say shares are undervalued, but in reality Hess may not benefit much more from the oil rebound.
* Small Caps: Positive on ADNT: Shares of world’s largest maker of automotive seating are up, but they remain undervalued and could continue to rise in the coming years.
* Follow-Up: Positive on ANTM: Shareholders could benefit from the termination of company’s planned merger with CI even if it has to pay all or most of the $1.85B breakup fee; Positive on SYF: Shares of credit-card issuer “still have room to run, thanks to strong operating momentum and a healthy U.S. consumer.”
* European Trader: Positive on Reckitt Benckiser: British-based company’s proposed purchase of MJN looks timely, and could boost its exposure to Asia and U.S. consumer-health markets.
* Asian Trader: Cautious on Toshiba: Shares of electronics major are tumbling amid fears the company could go bankrupt, wiping out shareholders, or enter in a debt-for-equity swap with banks that would dilute holders.
* Emerging Markets: The Mexican peso has seen an upswing as negotiators from Mexico, Canada, and the U.S. seek ways to hold NAFTA together with compromises that would be acceptable to Donald Trump.