TradeTheNews.com Barrons Saturday summary: Positive on community banks, FDX, small cap stocks, STX, GRMN, QCOM, HPQ, IBM WDC, HOLX, CLC, SRPT ; cautious on European financial institutions, human resource tech space
Cover story: Discusses the prospect of impact investing and how many people believe it doesn't mean sacrificing returns in an effort to do good, and that such investments can be less volatile and outperform traditional financial benchmarks, especially in bear markets.
Tech Trader: Open-source software blockchain has the potential to remove multiple layers of processes and intermediaries in the sequence of steps that clear mobile payments, which could have an impact on credit-card networks such as V, MA, AXP, and DFS.
Trader: Economic data will be in focus this week as it could color the Fed's intentions in 2016; The outlook for community banks is brighter now that the Fed seems likely to raise rates, widening their net interest margins (Positive on HIFS, BANR, HSFNX); Positive on FDX as it could benefit from the increasing shift to online buying, and from its ability to pass along price increases.
Interview: Dan Veru, chief investment officer at Palisade Capital Management, says small caps have an advantage over their larger brethren because they rely more on domestic sales, avoiding currency risk (picks: SNA, CNC, QLIK).
Features: 1) Positive on STX GRMN QCOM HPQ IBM WDC: Shares of these tech stocks have taken a hit, but they have stronger prospects than many investors believe, and patient investors should see shares rebound; 2) Profile of Silver Creek founder Eric Dillon, who is looking at trillions of dollars of nonperforming loans on the balance sheets of European financial institutions, plus another trillion in non-core assets and real estate; 3) Positive on HOLX: Company focusing on women's health products has a new leadership team and has undergone a transformation following Carl Icahn's investment, and shares could reach $80 in three to five years; 4) Positive on Numericable-SFR: Management at France's largest cable-TV operator and No. 2 mobile-phone service provider is working to stem customer defections and attract users with a broad range of new offerings.
Small Caps: Positive on CLC as it has the potential to lower its cost structure while growing its business in a restructuring; share upside estimated near 20%
Follow-Up: Positive on SRPT: Pharma company appears to have the only drug for Duchenne muscular dystrophy that will be approved by the FDA following a negative review of rival BMRN's offering. European Trader: Positive on Persimmon, Barratt Developments, Taylor Wimpey: U.K. homebuilders are likely to get a boost from new government measures aimed at promoting homeownership.
Asian Trader: "The once-stable yuan is subject to expectations that it could weaken anywhere from 3% to 10% next year."
Emerging Markets: Positive on Coca-Cola Icecek, Magnit, Airports of Thailand, Pax Global Technology: Jean-Louis Scandella of Baring Asset Management says these four emerging-market stocks are "sleeping beauties" that should benefit from the growing middle class in developing markets.
Commodities: With oil oversupply showing no signs of easing, prices are likely to remain low for some time, with little relief from weather conditions or OPEC.
Streetwise: San Francisco-based cloud firm 1-Page "may be the most revolutionary company you've never heard of," and could disrupt companies in the human-resources space such as LNKD and MWW.