Saturday, August 5, 2017

Barron’s cover story

Barron’s cover story looks at tech giants threat to old media names; Positive features on VOYA and DAL 

Cover story: With their deep pockets, tech giants such as AMZN, FB, and GOOGL could begin to threaten the dominance of TV networks that broadcast football and other major sports; In a changing media landscape, the major broadcast networks—ABC, CBS, NBC, and Fox—are better positioned than cable rivals because of their strong in-house production operations. 

1) A panel of experts—Jenny Van Leeuwen Harrington of Gillman Hill Asset Management, Richard Daskin of RSD Advisors, Maury Fertig of Relative Value Partners, and Michael Terwilliger of Resource Credit Income—discuss income investing and offer picks (HYD, BAB, BLW, EVG, DRA, Chimera Preferred Series B, MMP, SKT, HASI, WHF, AJX, BJ Wholesale Club Loans); 
2) Positive on DAL: Shares are inexpensive for a carrier seeking to post double-digit earnings growth in coming years, and could rise by 35% in the next year or two; 
3) Positive on VOYA: The company’s disappointing numbers mask the fact its core retirement and investment business is growing, and that management is taking steps to reduce risk. 

Tech Trader: Positive on FNSR, LITE, IIVI, VIAV: Companies are among those that stand to benefit from the next version of AAPL’s iPhone, which is expected to include new technology such as augmented reality. 

Trader: One stock, especially a high-priced one, can have an outsized impact on the Dow Jones Industrial Average, meaning it isn’t really a valid reflection of the market; Positive on SO: Shares haven’t done well this year, but the company’s nuclear reactor projects could make it a good bet for investors willing to take on more risk following the Westinghouse bankruptcy; The energy sector faces problems, but certain stocks should do well for investors despite industry turmoil (Positive on SU, CVX, CNQ, HCLP). 

Profile: Todd Beiley, co-manager of the Virtus KAR Small-Cap Growth fund, seeks companies with durable businesses and significant competitive barriers (top 10 holdings: OLLI, ATHM, FOXF, IBKR, Heico, ODFL, MELI, Natonal Research, ABAX, CPRT). 

Follow-Up: Cautious on TSLA: The company’s cars may be good investments, but investors should be wary of the shares, “which have outrun most analysts’ reasoned cases for buying.” 

European Trader: San Diego-based Brandes Investment Partners consider Brexit fears overdone, and are investing in British retailers and property-services companies (Positive on TSCO, SBRY, MRW, MKS, DEB, KGF, LSL CWD). 

Asian Trader: London-based, Asia-focused banks Standard Chartered and HSBC pose different opportunities for investors, but the latter’s immediate prospects look better, and its business is more profitable. 

Emerging Markets: Individual investors are increasingly moving into bonds that emerging markets issue in their own currencies, which offer strong yields but come with risk because of the dollar’s volatility. 

Commodities: Copper is enjoying its biggest rally in months amid growing global confidence and a weaker U.S. dollar, but some investors suggest waiting to see if the optimism is justified. 

Streetwise: Mike O’Rourke of Jones Trading says that “Failing to recognize the structural shift in the U.S. economy at the turn of the century, the Fed has been mistakenly chasing 20th century 3.5% GDP growth in a 2% GDP growth economy.”