Sunday, January 29, 2017

Barrons weekend summary

Barrons weekend summary: positive on ANTM, MGA 
Cover story: "The Dow hitting 20,000 was no fluke. Today's stock prices are well supported by solid prospects for corporate earnings and economic growth"-and there's no reason the DJIA can't reach 30,000 if President Trump avoids a trade war. 

1) Positive on ANTM: Company's No. 2 health insurer has the lowest P/E ratio among peers and the most room for improvement in profit margins and earnings, and bulls argue it could earn $20/share by 2020; 
2) Positive on MGA: Unlike rivals, company can build an entire vehicle to a company's specs, as it does for customers like Daimler, and it should be able to maintain growth and increase market share despite a few concerns.

Tech Trader: Positive on MSFT: Because of its cash horde and earnings power, shares of the tech giant now appear to be a better pick for investors than those of INTC, which may have less of an opportunity to benefit from a potential tax holiday on overseas cash. 

Trader: It's a strange time for a market rally, because so many issues have yet to be resolved, and uncertainty remains about taxes, regulations, and other issues-while volatility could still rear its head; If Donald Trump succeeds in bringing factories back to the U.S., many jobs that come with them are likely to go to robots rather than to humans; Positive on AMZN: In normal times, the retailer would have difficulty breaking into the auto parts sector, but Trump administration rules about importing and tariffs could make the task easier for it. 

Barron's Roundtable: Part three offers picks from Oscar Schafer (ABCO, AA, Liberty Global, INXN, ANIP), Brian Rogers (LM, CVS, CASY, DIS, BMY), and Abby Joseph Cohen (LLY, Olympus, BLUE, LG Chem, INTU, HMHC, Shenzhen Airport). Profile: Suzanne Hutchins, lead manager of London-based Dreyfus Global Real Return, thinks the S&P 500 could fall by 40% or more from current levels, driven by excessive valuations and rising interest rates (top holdings: Treasury bonds and notes, ES, CMS, NVS, MSFT, Wolters Kluwer). 

Small Caps: Positive on SYNT: Shares of infotech services company trade at a discount, but concerns appear to be overblown, and while there may not be any near-term catalysts for growth, the long term looks good. 

Follow-Up: Positive on CTRP: There are promising signs for the company, which is growing its overseas business by adding more hotels and focusing on China; Cautious on IR: Shares are up, and could eke out a near double-digit return over the next year, but there are better bargains, and investors should take profits; Cautious on BIP: BAM's infrastructure division will have to reveal updated valuations for properties that had different values in the past, a situation that warrants investor scrutiny.

 European Trader: Positive on Atlantia(ATL.IT): After getting past some hurdles, motorway and airport owner is looking to expand beyond Italy and restructure its business. 

Asian Trader: Investors seeking shelter amid rising rates and a stronger dollar in Asia, a trade-dependent region likely to bear the brunt of Donald Trump's protectionist policies, should look to Indonesia," which is largely insulated from turbulence in world trade. 

Emerging Markets: Indian prime minister Narendra Modi's reforms didn't produce much success last year, but India remains the fastest growing large emerging market, and could see GDP growth of 7% this year. 

Commodities: "After a big rally in 2016, palladium prices are surging again. Despite the run-up, investors say there are still plenty of reasons to buy the volatile metal." 

Streetwise: Rather than outsource its money management, Harvard University would do better to break with its endowment peers and consider greater equity indexation.