Saturday, February 25, 2017

Barrons weekend summary

Barrons weekend summary: positive on TV, RIG, GPN ; Cautious on HOG, QCOM, INTC, SAM 
Cover story (Cautious): HOG would be a key beneficiary of Donald Trump’s plan to cut taxes and promote American-made goods, but its core demographic of middle-aged white men is shrinking along with other ridership markets, and a strong dollar is crimping foreign sales; Shares should trade in the high $40s, not the high $50s. 

Tech Trader: Cautious on QCOM, INTC: Both companies recently unveiled new mobile chips, but overall they will see diminishing returns; the best bet for investors interested in wireless chips may be smaller rivals SWKS and QRVO.

 Trader: Most investors think the Fed will wait to raise rates, while 40% expect a March hike, down slightly from the week prior; Cautious on SAM: Craft beer seems to have hit a saturation point, and the company has been slow to embrace the “tap room” approach other breweries use to draw customers. 

Interview: David Gluskin, chief economist and strategist at Gluskin Sheff & Associates, sees volatility ahead, is cautious on the Trump rally, and thinks the market will finish the year where it started. 

1) Positive on TV: Shares of the Mexican television giant, which owns an appealing range of businesses, appear undervalued, having sat out the strong rally in most U.S. cable and media stocks the past year; 
2) Positive on RIG: As the company puts lower revenue and losses behind it during a turnaround, shares could rise by more than 35% during the next year or two, making them a good play for patient, value-oriented investors; 
3) Cressida Hogg, who oversees the Canada Pension Plan Investment Board’s $18B infrastructure portfolio, talks about Donald Trump’s infrastructure proposals and how the Brexit will affect the market; 
4) Positive on GPN: Technology and services provider for small and mid-size merchants has strong international exposure, giving it an edge on U.S. rivals, and is getting into a wider range of businesses. 

Small Caps: Positive AXTA: Company has a high-quality franchise with top positions in various auto-coating sectors, and its refinishing business, which accounts for 40% of revenue, should grow during the next year. 

Follow-Up: Positive on Snap: As the company prepares for an initial public offering, “it seems to be overcoming qualms about profitability and slowing user growth,” and investors see strong advertising potential. 

European Trader: Cautious on Nestle: Food and beverage giant has suffered a number of setbacks, but it still has good prospects in a tough market. 

Asian Trader: Positive on Shenzhen Huiding Technology, Egis Technology: The Asian companies stand to benefit from the growing user of fingerprint sensors on smartphones, a trend started by AAPL. 

Emerging Markets: Russian and Indonesia stand to be winners if commodity prices stabilize, driven by demand in China and the U.S. 

Commodities: Platinum prices are up 11% since the start of 2017, but oversupply and weak demand could end the rally, creating an opportunity for investors to benefit from a drop. 

Streetwise: “Cyclical rejuvenation hasn’t cured the structural ills of an economy hollowed out by automation and global competition, and stagnant wages for 90% of the population.”