Barrons weekend update: positive on EBAY, SHPG, LKQ
* Cover story: Barron's first annual list of the Top 200 Sustainable Mutual Funds is topped by Transamerica Large Cap Value, Davis Opportunity, American Century Equity Income, Loomis Sayles Growth, and Skybridge Dividend Value; The list is comprised of U.S.-based large-company, actively managed funds with the most sustainable portfolios, ranked by one-year returns.
* Features: 1) Positive on EBAY: Company is overhauling how it lists merchandise for sale in a bid to address shortcomings that had dented growth; with expectations low and a modest valuation, contrarian investors should buy; 2) Positive on SHPG: Pharma giant continues to make acquisitions, growing a pipeline of drugs "capable of propelling sales and profits for years"; the acquisition of Baxalta could boost shares by more than 25%; 3) Positive on LKQ: Auto insurers increasingly seek lower-cost repairs, benefiting the provider of recycled and refurbished bumpers, fenders, hoods, and axles.
* Tech Trader: It may be too soon to declare that the tech IPO market is back, says Tiernan Ray, but it's beginning to feel that way; Investors should keep an eye on component makers such as MRAM and FMAX, because they usually come to market with a roster of customers; Cloud and equipment vendors also tend to do well, while makers of integrating computing systems have struggled.
* Trader: Economic growth should continue to boost markets in the long run, says Jason Price of Glenmede, and the current economic expansion isn't likely to stop, benefiting risk assets and equities; Positive on DKS: Sporting-goods chain has been among the biggest beneficiaries of the retail sector shake-up-it has reconfigured stores to sell more fitness apparel and footwear, and added new merchandise; The SEC's track record this year on bribery cases is strong, and investors benefit from knowing what companies have FCPA violations.
* Interview: Keith Trauner and Larry Pitkowsky of GoodHaven Capital Management look for solid but beaten-down companies and wait for the market to recognize their value and reprice them (picks: ABX, WPX, LUK, VZ).
* Profile: George Papadoyannis of Ameriprise Financial is a big believer in municipal bonds, and is scaling back on growth-oriented investments in favor of less-volatile options.
* Mutual Fund Quarterly: Some funds categorized as "sustainable" don't really fit into the category; ETFs comprise only a small part of the sustainable investing universe, but that could soon change; Big fund firms are competing with Vanguard on ETF pricing, potentially taking losses to win assets; "Closed-end municipal bond funds have soared recently, but income investors who missed out can still find some opportunity"; Chinese and Japanese markets got a boost because of a strong fourth quarter for stocks, while U.S. share outflows were the result of concerns about the presidential election.
* Follow-Up: 1) Positive on Samsung Electronics: After a recent 40% gain, shares still look cheap despite problems with the Galaxy Note 7 smartphone, because the company maintains a dominant position in numerous sectors; 2) Cautious on ADSK: Shares are up 53% since September 2015, but the company's financials are a concern; much of the current optimism is already priced into shares, and investors should consider taking profits; 3) Some investors wonder if Bass Pro Shops is overpaying for CAB, whose retail stores are struggling and may have trouble generating the required cash flow to make the deal work.
* European Trader: U.K. government bonds face bad news, because the pound's weakness is a sign that higher inflation will erode future coupon payments.
* Asian Trader: Postal Savings Bank of China had a strong IPO, going public at more than book value, but as fears about China's massive debt recede, the shares are likely to gradually lose their premium.
* Emerging Markets: This year's best-performing emerging-market mutual funds, including Brandes Emerging Markets Value fund, share at least one trait: betting on Brazil. Commodities: "Oil prices jumped in late September on news of an OPEC deal to reduce production, but the agreement comes with too many caveats to push prices much higher."
* Streetwise: Low-volatility stocks have been driven not just by the demand for safety, but also the reach for yield, but that demand is starting to wane, says JPM strategist Dubravko Lakos-Bujas.