Barron's weekend update: positive on PVH and X
Cover story: In Barron's latest Big Money Poll, 45% of respondents were bullish or very bullish about the market's outlook through the middle of 2017, up from the spring poll's record-low 38%; "A modest quickening of global economic activity and a related uptick in commodities prices seem to have quelled some money managers' doubts."
Features:
1) Positive on X: Shares of steel giant could rise 50% in a year if it successfully beats back challenges from Chinese rivals and higher costs, but the shares may still be a gamble because of price volatility in the sector;
2) Positive on PVH: Company's Calvin Klein and Tommy Hilfiger brands are seeing increased sales, with much of the growth coming from department stores such as M.
Tech Trader: In the tech sector, winning stocks don't always reflect underlying business reality, as the once-hot 3-D printing sector or the uneven semiconductor market show; "Not for the faint of heart is the occasional bet on a beaten-down stock still expensive in a fashionable market," such as NOW and WDAY.
Trader: Until the presidential election is over, the market will likely focus on quarterly reports, says Michael Purves of Weeden, and poor results will lead to skittishness; Positive on AMZN: Retailer's strong fundamentals could lead shares to spike further, fueled not just by bulls looking to get back in but by short-sellers covering their positions; Jeff Bahl of Bahl & Gaynor Investment Counsel likes BAC's 7.25% Preferred Series L and WFC's 7.50% Convertible Preferred Series L securities; Cautious on HAIN: Despite some insider buying lately, things could get worse before they get better at the food and beverage company.
Profile: Hitesh Patel, manager of PNC Multi-Factor Small Core fund, says the lack of information about small companies gives him more room to be active in the space (top 10 holdings: UFPI, AEPI, CHDN, SSB, IPHS, MSCC, CMN, FLML, ICLR, EVTC).
Interview: Joel Greenblatt, professor at Columbia University and co-founder of Gotham Asset Management, likes AAPL, CVS, and QCOM and is short on CRM, COST, and CAT.
Small Caps: Positive on FMC: Shares have plenty of room for upside-as much as 50%-when prices in the agricultural sector start heading up, and the company should benefit from the introduction of several new products.
Follow-Up:
1) Positive on Samsung: Company's "move to discontinue sales of its Galaxy Note 7 is a blow to its sizable cellphone business, but it doesn't destroy the bull case for its cheaply valued shares";
2) A look at the five nonprofits rated highest by Charity Watch for their efforts to help Haiti manage the aftermath of Hurricane Matthew.
European Trader: Positive on A.P. Moller-Maersk: Danish shipping conglomerate's decision to split into two companies should unlock value for shareholders.
Asian Trader: Following the death of Thailand's King Bhumibol Adulyadej, the military government will need to boost infrastructure spending to offset weak domestic spending, benefiting construction companies (Positive on CH Karnchang, Sino Thai Engineering).
Emerging Markets: Positive on YUM: Shares of company's spin-off, Yum China Holdings, should pay off for patient investors if it can boost store count and same-store sales.
Commodities: Investors who buy natural gas before the winter could reap rewards if nature cooperates, since prices are not far above historic lows and demand could surge in winter.
Streetwise: Companies such as MSFT, GE, and AAPL, among the approximately 50 companies that account for $1.7 of the $2.9T of profits held offshore, could benefit if the government gets a tax deal done next year.
