Saturday, March 11, 2017

Barron's weekend summary

Barron's weekend summary: positive on BX, NCLH, BLL
 Cover story: Four exchange traded fund experts-Joel Dickson of Vanguard Group, Mark Wiedman of BLK, Jim Ross of STT and Tony Rochte of Fidelity-discuss the ETF industry and topics such as the active-versus-passive debate. 

1) Positive on BX: The alternative-asset manager has been making far more money than rivals, and its shares could see a 40% rise based on more fund raising and an increase in distributable earnings; 
2) Positive on NCLH: Shares may have trailed those of other cruise line companies during the past year, but stronger booking trends and higher-paying passengers could send them up by 20%; 
3) Positive on BLL: Shares of the world's largest beverage-can maker have dropped amid concerns about its Rexam acquisition, presenting an opportunity for investors to buy in on the cheap;

Tech Trader: Asking whether SNAP is more like FB or TWTR is the wrong question-the recently listed company's identity crisis is more reminiscent of onetime highflyer GPRO, a camera company that sought to be a media company, much like Snap wants to be. 

Trader: "A sense of unease hangs over the market, especially after the price of oil fell 9.1% last week, sinking to its lowest level since November. And the market is certainly overdue for a selloff"; "Right now, confidence is surging in the market, but it has yet to translate into tangible gains"; Cautious on GILD: Biotech stocks are on the rise again, but investors are bypassing Gilead because it has yet to produce a blockbuster follow-up for its hepatitis-C treatments. 

Profile: Arvind Navaratnam of the Fidelity Event Driven Opportunities fund looks for corporate actions that will help him identify mispriced stocks (top 10 holdings: EXTN, MSG, FOX, BCO, ECPG, ADS, DEPO, TIME, FMCC, FNMA). 

Small Caps: Positive on MPW: Shares of the REIT have taken a hit over concerns about operational and liquidity problems at ADPT, but the selloff appears overdone, and shares are now cheap. 

Follow-Up: ANET is among smaller firms gaining ground on CSCO, and with a higher share price and greater operating momentum, investors should stick with it; Positive on VC: Shares could add another 20% as revenue and profits rise, and the company could be an acquisition target. 

European Trader: Positive on Peugeot: French automaker's acquisition of Opel and Vauxhall from GM "is a relatively small deal financially, but strategically smart," as it will make Peugeot Europe's second-biggest car maker. 

Asian Trader: "To sustain its gains, Hong Kong will need more capital flows from the mainland, because foreigners have not bought into China's recovery story yet. Actively managed funds are still selling." 

Emerging Markets: Positive on Fomento Economico Mexicano: Mexican conglomerate has seen a rally recently, but shares still look undervalued given the diversity of the company's revenue streams. 

Commodities: Analysts say sugar prices are likely to remain volatile in the months ahead, as uncertainties over weather conditions and production spark volatility. 

CEO Spotlight: Profile of Airbus chief executive Thomas Enders, who wants to build on the company's presence in the Asia-Pacific region, North America, and Europe. 

Streetwise: As the bull market enters its ninth year, investors should keep an eye on crude-and other commodity prices and be prepared for potential surprises.