Saturday, March 18, 2017

Barron's weekend summary

Barron's weekend summary: Positive on DIS and water sector; cautious on GRUB 
Cover story: Donald Trump's border adjustment tax is a bad idea, and is "so complicated that even its advocates can't agree on how its disruptive effects on the U.S. economy will play out"; Barron's says there are better ways to boost the economy.

1) Cautious on GRUB: Online food-ordering service has seen strong revenue and profit growth since 2013, but new rivals with deeper pocks could grab market share and dent earnings; 
2) Positive on PHO, CGW, TTEK, XYL: There isn't a single dominant company to bet on in the water sector, but these exchange-traded funds and companies are a good way to gain exposure to it; 
3) Positive on DIS: Company's film and parks divisions are doing well, and an upcoming ESPN service viewers will be able to access outside of cable packages should boost earnings growth next year.

Tech Trader: Positive on INTC, ORCL, IBM: Companies may be doing better than many investors expected, but little has changed in their strategy and operations, and they don't truly grasp the leaps technology is making. 

Trader: The fact that tech stocks such as FB and PCLN are back in fashion is a sign investors have begun to doubt the economic growth spurt expected under the Trump administration; Cautious on FDX, NSC: Transportation companies are lagging, but investors have no reason to worry yet, says Doug Ramsey of Leuthold Group; Cautious on GOOS: Shares of trendy clothing company seem richly priced, and while it may have a strong year, its stock discounts many years of success, but not much risk. 

Interview: Ellen Stanek, chief investment officer of Baird Advisors, "focuses on adding basis points of yield and return through old-fashioned credit analysis." 

Profile: David Marcus, manager of the Evermore Global Value fund, focuses primarily on Europe and looks for value and change (top 10 holdings: Scorpio Bulkers, ENZ, Ainmt, Ambac Financial Group, Codere, Aurelius Equity Opportunities, NN Group, Bollore, Hapag-Lloyd, Telecom Italia). 

Small Caps: Positive on WBT: Shares have gained 40% since Wellbilt was spun off from MTW, and could see more gains when investors better understand its business. 

Best Online Brokers: Barron's list of the best online brokers for 2017 is topped by Fidelity, IBKR, AMTD, OptionsHouse, and SCHW.

Follow-Up: Positive on AAPL: Investors should hold shares until at least the end of summer, when buzz for the tenth anniversary iPhone will heat up and shares could see a 10% boost.

 European Trader: The results of the recent Dutch elections have eased fears of a European Union breakup, but uncertainty about rising populism and upcoming elections in France and Germany could affect markets

Asian Trader: The surprise majority win of Indian prime minister Narendra Modi's Bharatiya Janata party in Uttar Pradesh should send the country's stocks higher. 

Emerging Markets: "Emerging-market skeptics may need to rethink their positions. While higher U.S. rates historically have been bad for emerging markets, this rate cycle looks different." 

Commodities: A closer look at the natural-gas market indicates it may not be in as much trouble as it appears to be; investors should look past winter and prepare to make a summer play. 

Streetwise: Investors have a number of issues to worry about, including the potential for a slower-than-expected economic recovery, an economic slowdown in China, and a Fed move to raise rates faster than the market anticipates.