Saturday, August 20, 2016

Barron's weekend

Barron's weekend: positive on FB 
Cover story: Donald Trump and Hillary Clinton's views on free trade are wrong, since they don't take into account the benefits cheap imports bring, including jobs that more costly imports can destroy; nor do they see that a widening trade deficit correlates with prosperity while a shrinking one is tied to slumps and recessions. 

Features: 
1) Profile of Paul Britton, founder of the Capstone Volatility Master fund, uses an unusual alternative strategy that seeks to profit from volatility spikes and which involves owning only a few underlying securities; 
2) Positive on FB: Wall Street analysts predict the social site's shares could hit $153 in a year, for a further gain of 20%, with profits growing steadily and stronger advertising sales; 
3) Positive on Liberty Braves Group: Shares of the stock that tracks the Atlanta Braves could benefit from increased ticket sales and concessions when the team moves into a new stadium, and deliver 20% returns; 
4) A look at what top investors, including George Soros, Warren Buffett, David Einhorn, Jeffrey Ubben, and Carl Icahn, are betting on, with AIG, C, GS and MS being favorites and all but Buffett dumping AAPL; 
5) Review of a new book, "Winning at Active Management," explains why it's hard for investors to beat the index, and how they can go about doing so.

Tech Trader: Cautious on CSCO: Recently announced layoffs at the networking major are sign that its market opportunity is being eroded by the shift of computing activity to cloud services run by AMZN, MSFT, and others. 

Trader: In the markets, "plenty of cash remains on the sidelines, but a 2% to 3% pullback could draw in folks who have been either short or have missed this latest rally over the past six weeks," says Andrew Ahrens of Ahrens Investment; Positive on C: Shares of bank look cheap for investors with long-term horizons, and they could provide a double-digit percentage annual return during the next two years; The rising popularity of various derivatives, such as options, among others, has stolen volume from equities. 

Interview: Stephanie Pomboy, founder of MacroMavens, continue to like government bonds because economic growth won't be a catalyst to push rates higher, and she says investors should look for a repricing of credit risk. 

Follow-Up: Positive on MAT: Barron's foresees a strong holiday season for the toymaker, and a further 20% return during the next year, including dividends; Cautious on HAIN: Company "may eventually find an acquirer, but until the cloud dispels from its books, the stock is going nowhere"; + LafargeHolcim: Cement giant has delivered synergies following the merger of Lafarge and Holcim last year and has cut staff and trimmed fat, all of which should help the shares rise. 

European Trader: Positive on SpareBank 1 SR Bank and SpareBank 1 SMN: Norwegian regional savings banks are among the firms doing well in the troubled European banking sector, partly because Norway's economy, though tied to oil, is thriving. 

Asian Trader: China may not be as scary as some investors have made it out to be, but its stocks can't have a reasonable rally less bank shares participate. 

Emerging Markets: The MSCI Emerging Markets index is up about 35% from its January low and should continue to rally, according to Calamos Investments. 

Commodities: Gold has made an impressive comeback, and investors hope the rally will continue as many of the factors that have driven it remain in force. 

Streetwise: Positive on CRL, APC, WLL: Guggenheim's Subash Chandra says these energy companies may be on the verge of seeing gains because of higher production targets.