Cover story: “After decades of research and development, gene therapy is rapidly emerging as one of the most exciting areas in biotechnology—and generating new hope for patients with certain rare and often deadly inherited diseases” (Positive on ONCE, AVXS, RGNX, BOLD, VYGR).
1) Cautious on SIX: Shares have climbed sixfold since the company exited bankruptcy in 2010, but hitting long-range growth targets may be difficult, and competition could dent its growth potential;
2) Positive on ORCL: Tech major’s numbers indicate that its move to the cloud is on track, and that its legacy business is stabilizing after two years of declines.
Tech Trader: As the artificial intelligence trend continues to gain steam, investors such as SoftBank Group’s Masayoshi Son will keep funding companies with ties to the sector, of which the chip industry is at the epicenter; Among the companies benefiting from the AI boom are XLNX, SNPS, CDNS, LSCC.
Trader: Analysts expect to see some sort of economic pullback, perhaps sparked by North Korea, but few predict that financial conditions will deteriorate; If the government allows U.S. companies to repatriate cash at a low tax rate, those with the most cash relative to their market caps will get the biggest boost; A look at defensive stocks investors can look to for protection during a correction, suggested by Michael Belkin of the Belkin Report (long: CVX, CSOP SZSE ChiNext ETF, VXX, NEM, PAAS, XLRE, XLU, VZ; short: GOOG, SCHW, CTXS, ERIC, NVDA).
Interview: Christopher Ailman of CalSTRS can’t settle for low growth but must also protect principal; he sees opportunities in Europe, problems in the investment industry, and says the U.S. market is priced for perfection.
Profile: Matt Brill and Michael Hyman, co-managers of the Invesco Corporate Bond fund, are optimistic because U.S. economic growth is running at or above expectations, and strong corporate earnings make for creditworthy companies. Penta: A look at the turnaround of New England-based Narragansett Beer; Profile of little-known Swiss watch maker Romain Gauthier; HMC’s $200K Acura NSX supercar doesn’t have the “raw appeal” of cars from RACE; Aircraft prices are depressed, making it the perfect time to buy a used corporate jet; Women clients are reshaping private banks; America’s Top 40 wealth management firms, topped by Bank of America Global Wealth & Investment Management, grew by 19% last year; A year from now, a glut of new and old condos in Miami should present a buying opportunity; Profile of Martha Henderson, “the most powerful banker in Hollywood”; A look at tax bonuses available for people who rent out second homes.
Follow-Up: “Any optimism that Puerto Rico’s massive debt would get renegotiated in a timely fashion has been dashed by the impact of two monster storms that struck the island this month”; SharkNinja continues to gain ground on IRBT in the robotic vacuum space.
European Trader: Investors often conflate European companies, which may derive a sizable share of income from outside the region, with European countries and their slowing economic growth.
Asian Trader: Pakistan recently regained emerging market status after being a frontier market, a move that prompted many investors to sell—creating opportunities for those who see potential in the country’s stocks.
Emerging Markets: Poland, China, and Korea are the best-performing emerging markets year-to-date, while Pakistan, Qatar, and Russia are the worst, according to data from MSCI.
Commodities: “Coal’s price performance this year has outpaced that of archrival natural gas, and it’s on track to reclaim the top spot in electrical generation before long.”
Streetwise: The fundamentals for aerospace are good, says Rajeev Lalwani of MS, and manufacturers have the “upper hand” because they can dictate which suppliers to work with.