Barrons weekend update: positive on IPG, ZBH
Cover story: The luxury second-home market is thriving; Topping the ranking for livability and value are Austin, Texas, where there are good buying opportunities in a softening market; Lake Geneva, Wisconsin, where a long-moribund market is on the upswing; and Park City, Utah, where MTN is giving the ski business a boost; Overheated cities include Palm Beach, Florida, and Hanalei, Hawaii.
1) Positive on IPG: Advertising giant's blend of traditional and digital advertising gives it an edge over competitors, and its shares could see a 20% boost in a strong ad market;
2) Positive on ZBH: Manufacturer of hip, knee, and shoulder replacements is thriving; shares are trading at a deep discount and could see a gain of 25%.
Tech Trader: Cautious on YHOO: Time may be running out for chief Marissa Mayer's turnaround even as she embarks on a new three-year plan that includes considering bids for its core business while transforming it for a possible a spin-off; The current battle between activists and Yahoo has been a waste of time for investors, who should take their money and seek other tech opportunities.
Trader: First-quarter earnings, which are just over the horizon, will need to be better if the rally is to continue, though much of the recent earnings shortfall can be blamed on energy; Positive on CERN: Shares of healthcare infotech provider have fallen, making it appear "invitingly cheap" because of its growing bookings and robust earnings; Positive on EDGE: With its shares now at about half the IPO price, company that develops and delivers drugs for hospitals that treat life-threatening conditions offers an opportunity for investors.
Alternative Investments: Positive on Pershing Square Holdings: Fund "offers the best way for retail investors to play a possible rebound in William Ackman's fortunes, via a concentrated portfolio of stocks that includes APD, ZTS, CP, QSR, and VRX."
Interview; Ross Margolies, founder of Stelliam Investment Management, is focused on the energy and airline industries and is bullish on APC, DAL, and SPLS. Profile: Hedi Ben Miouka, manager of Duet EM Frontier fund, focuses on nascent markets such as Egypt and Nigeria that are less developed, regulated, and researched than emerging economies like Mexico and Turkey.
Small Caps: Positive on RELY, IGT: Shares of both companies continue to look like bargains; Real Alloy should benefit from increased aluminum use in cars and trucks, while International Game Technology "is a free-cash-flow-generating monster."
Follow-Up: Cautious on DECK: Investors who have ridden the rise in share price should take profits now, given potential risks facing the maker of UGG footwear.
European Trader: Positive on Marine Harvest, Pandora: Scandinavian salmon farmer and jewelry company should both outperform this year, and each could see a 20% rise in share price during the next 12 months.
Asian Trader: India and Indonesia elected reform-minded leaders, but this year Indonesia is outpacing India for several reasons, including the fact that it has an easier time whipping up private-sector spending.
Emerging Markets: As of March 24, the best performing emerging markets were Peru, Brazil, and Colombia, while the bottom three were Greece, China, and Egypt; In Indonesia and the Philippines, low inflation is giving central banks more room to be accommodative.
Commodities: "Unfavorable weather conditions and increased global grain consumption are expected to lift prices for wheat and corn out of a slump that has lasted for years."
Streetwise: Positive on AAL: Stock is in an Evercore ISI basket that combines companies with cheap valuations, little or no gap between operating and GAAP earnings, and which have outperformed the S&P 500 during the past 10 years.