Sunday, June 11, 2017

Barrons weekend summary

Barrons weekend summary:  positive on LRCX, DBD, select energy sector names, select banks \Cover story: Mid-year picks from panelists on the Barron's 2017 Roundtable: William Priest (COHR, CYBR, DIS, JCI); Jeffrey Gundlach (PPT, EEM); Meryl Witmer (DLTR, Howden Joinery Group); Scott Black (TSEM, ICHR); Oscar Schafer (COMM, Cellnex Telecom); Abby Joseph Cohen (Schneider Electric, Clariant, Omron, ARMK); Mario Gabelli (VVV, COT, MICC, CNHI, Liberty Braves Group, RHP, MWA). 

1) Positive on CNQ, CVX, EOG, NBL: The struggling energy sector could be near a bottom after a drop in U.S. crude-oil inventories sent prices to a new low for the year, and the stocks should see nice gains; 
2) Positive on CMA, SIVB, ZION: The three banks, which have large variable-rate commercial loan portfolios and non-interest-bearing checking accounts, should continue to benefit from short-term rate hikes; 
3) Positive on LRCX: Company is benefiting from the spread of NAND hard drives and the growth in popularity of smart devices such as refrigerators and watches; shares could gain 20% during the coming year; 
4) Positive on DBD: Though Wall Street believes online and mobile payment systems will render cash obsolete, Diebold continues to make cutting-edge ATMs and is a contrarian opportunity for investors. 

Tech Trader: Cautious on AAPL: Tech giant’s recently unveiled HomePod “shows up Apple’s shortcomings in cloud computing and the related fields of machine learning and artificial intelligence,” and isn’t likely to supplant AMZN’s Alexa or GOOGL’s Assistant. 

Trader: “If Fed chief Janet Yellen can pull off a hike and convince markets that the U.S. economy is still growing steadily, Friday’s tech wreck could be just a hiccup on the way to higher stock markets”; The tools in the activist investor playbook are getting old, with most activists simply focusing on getting companies to buy back shares and pay dividends; If KR is forced to cut guidance again, it could lead to another industry price war in which margins are sacrificed for sales growth. 

Profile: Peter Kwiatkowski of the Touchstone Flexible Income fund looks for stable income in a global portfolio with a low correlation to traditional stocks and bonds (top 10 preferred holdings: GE, RBS, LYG, Australia and New Zealand Banking Group, JPM, Societe Generale, ING, USB, VIA, Catlin Insurance). 

Follow-Up: Positive on REGN: Shares may look expensive relative to near-term earnings forecasts, but the company has more long-term potential for hits than its peers; Cautious on EXAS: Tests of the company’s colorectal cancer medication seem positive, but profits are years away and much of the optimism is already priced into the stock. 

European Trader: For investors, the outcome of the recent British elections was the worst possible, “potentially plunging the U.K. into a period of political uncertainty that could weaken the economy.” 

Asian Trader: Positive on Inventec, Primax Electronics, Sunny Optical Technology, Largan Precision: AAPL’s home-speaker device is likely to boost several companies in the Asian tech sector. 

Emerging Markets: Positive on BAP: Shares of the Peruvian bank are up, and should continue to benefit from economic growth under Peru’s market-friendly president, Pedro Pablo Kuczynski. 

Commodities: “Palladium prices surged to multiyear highs last week, but more pessimism in the auto industry and a pile-in by speculators suggest the rally is getting exhausted.” 

Streetwise: Fundstrat’s Thomas Lee sees opportunity in unloved sectors, and he likes MKTX, SCHW, WAL, TMUS, FANG, LNG.