Saturday, February 17, 2018

Barrons weekend summary

Barrons weekend summary: cautious cover story on GE; positive feature on GOOGL, LRCX, C, CMI and REITS 
Cover story: After a series of problems, GE has been attracting attention fromvalue-oriented investors; It has strong competitive positions in some sectors,and trades for a seemingly reasonable 15 times projected 2018 earnings—but the stockisn’t a bargain and could drop another 10% or more. 

Features:1) Positive on GOOGL, LRCX, C, CMI:As the bull market draws to an end, investors should consider these fourstocks—financials will benefit from rising interest rates, industrials will geta boost from inflation, and tech still looks attractive; 2) Positive on BXP, DEI, SLG, SPG, TCO, VNQ, RQI: Fundamentals in the REIT sector aregenerally healthy, and the sector could benefit from strong economic activitythat boosts demand for apartments, office, and retail space; 3) Cautious on AMTD, SCHW, MS, MerrillLynch: Vanguard is becoming a vertically integrated business that needs nooutside distributors, raising questions about its objectivity—though the dynamicsof the industry may make neutrality impossible. 

Tech Trader: “Tech firms, long known for plowing their wealth into research anddevelopment, have increasingly become shining examples of enterprises returningmoney to shareholders”—and there’s evidence the trend is shifting investorallegiances. 

Trader: More volatility wouldn’t be a surprise, or out of the ordinary, saysInstinet’s Frank Cappelleri, and doesn’t have to be a death knell for the bullmarket; RBC Capital Markets strategist Lori Calvasina worries too manyinvestors are betting on a weak dollar, and that stock prices in sectors suchas healthcare and consumer discretionary are rising with the dollar’s value;Positive on BAC, COF, JPM: After reaching highs last summer, some financial-sectorpreferred shares are now down to levels that make them well-suited forincome-oriented investors, according to Ulland Investment. 

Interview: Jay Bowen of Atlanta-based Bowen Hanes, which oversees the TampaFire and Police Pension fund, talks about where stocks are headedpost-correction and the impending Fed overhaul (picks: ATI, ABB, IBM). 

Follow-Up: A recent boost in UA shares after strong Q4 earnings may havethwarted short sellers, but it’s hard to tell whether the revenue upside marksa real turning point for the apparel company. 

European Trader: Positive on G4S, Loomis, Prosegur Compania de Seguridad,BCO: The rush to cash during recent market turmoil may have helped createbargains in the cash-handling industry, where some companies are moving intohigh-end services. 

Asian Trader: Investors ready to look beyond big Asian tech companies may findrelative bargains at much lower entry points, including Panasonic, Line, andFanuc. 

Emerging Markets: Latin America has begun to outperform amid market turmoil,offering a heavily commodity-linked investor proposition prone to politicalupheaval and supported by free-spending consumers. 

Commodities: “After years of decline, milk prices look ready to rally—morefrigid winters, lower production in some parts of the world, and more Chinesedemand will lead to higher prices.” 

Streetwise: As sexual harassment claims continue to rattle Hollywood and otherindustries, the structures that upheld and protected serial abusers arebreaking down—making finance’s 1990s-era detente look dated.