Saturday, March 25, 2017

Barrons weekend update

Barrons weekend update: Positive on VIA, SIVB; cautious on SEDG 
Cover story: Barron's list of the World's Best CEOs includes newcomers Mary Barra of GM, Satya Nadella of MSFT, and Stephen Hensley of UNH. 

1) Positive on VIA: The media company's shares are up since Bob Bakish became CEO, and his plan to reorganize programming, revive reality TV, and create more content for MTV could give shares a 40% upside; 
2) Cautious on SEDG: Shares of company that makes residential and commercial solar-power systems have taken a hit along with those of other firms in the sector, but shares are underpriced and could rally if sales targets are hit this year; 
3) Positive on SIVB: Lender to venture capitalists and start-up founders expects strong earnings growth in the years ahead, and shares could move 25% or more higher.

Tech Trader: Tiernan Ray says the good times for MU aren't likely to last, since DRAM and flash memory chips "haven't become any less of a commodity since the stock bottomed out roughly a year ago." 

Trader: Jason Trennert of Strategas Research Partners says that of nine factors that precede a market top, only one-slowing upward earnings revisions-is of concern; Robert Sluymer of Fundstrat Global Advisors says the number of energy stocks making new relative lows is no longer growing; Mall REITs have historically outperformed other real estate investments when rates are rising, a trend that should continue this year. 

Interview: Mariko Gordon of small-cap specialist Daruma Capital looks for a positive rate of change in a company's fundamentals and for risks and rewards that aren't reflected in the valuation (picks: ABM, FCB, OMCL, NPO). 

Profile: Jim Dondero of Highland Capital Management makes bets on alternative investments by focusing strongly on debt deals, turnarounds, and trends (top holdings: VSTE, CLO, TWTR, TRGP, LRN, PAGP, EPD, TerreStar, Argentina sovereign debt). 

Follow-Up: Positive on YHOO: Company's shares trade at a discount to its likely asset value; assuming no change in its BABA stake, investors could realize a 20% return during the next year; Cautious on GME: Shares could rally if the company gains time for its transition to selling a wider range of merchandise, and strong sales on new products from Nintendo and MSFT. 

European Trader: Positive on TOT: French oil major "could again find favor with investors after emerging from the recent oil-price collapse in better shape than many rivals." 

Asian Trader: Positive on BABA, Tencent: With fintech set to be a major trend in China, tech giants have the potential to generate an estimated $65B in sales by 2020 from the technology, and add 60% to their current valuations. 

Emerging Markets: Poland, Korea, and Mexico are the best-performing emerging-market countries so far this year, while Greece, Russia, and Qatar/UAE have performed the worst. 

Commodities: Lumber prices are set to rise because of a small trade war under way between the U.S. and Canada related to the price Canadian foresters charge to cut down a tree. 

Streetwise: "With the dollar's rise stalling and Americans balking at potential border adjustments that make imports pricier, investors looking to walk back their Trump trades could find NKE an increasingly comfortable fit."