Cover story: Barron’s 2018 Energy Roundtable featured four experts discussing oil, natural gas, and other energy stocks, as well as MLPs,with three of the four offering picks: Helima Croft of RBC Capital Markets,Charles Robertson of Cowen (APC, NBL), John Dowd of Fidelity Select EnergyPortfolio (EOG, HAL, PXD) and Gregory Reid of Salient MLP Complex (GEL, TRGP,SHLX).
Features: 1) In a previously unreported legal fight, TCI Fund Management andentities of TPG-Axon Management have sued private equity firm IREO, claiming ithasn’t been a proper guardian of their capital; 2) AMZN: Story says that economic experts, city planners, and laborleaders warn there may be a downside for the city in which the retailer buildsits second headquarters, partly because of the subsidies offered and housingshortages; 3) Cautious on Dentsu, IPG, OMC, PUB.FR, WPP, HAV.FR: Advertising giants are strugglingto improve their standing with investors, many of whom believe the agencies arelikely to be the next victims of Internet disruption.
Tech Trader: Positive on MSFT, INTC, NVDA, MU, GOOGL, AMZN: Microsoft is developing a practical quantum computer that could arrive in five years,affecting the chip, software, and cloud computing sectors.
Trader: Positive on AABA: Company could get a boost Tuesday when it announces astrategic update related to its stakes in BABA and Yahoo Japan, and RobSanderson of MKM Partners expects aggressive action; Positive on TWX: Shares ofthe media giant look attractive, and its strong profit outlook could limitdownside if antitrust authorities scuttle the deal with T; Positive on Stelco Holdings:After emerging from bankruptcy in November, the Canadian steel company could beone of the more compelling plays in North American steel.
Profile: Edward Silverstein, manager of the MacKay Shields MainStay Convertiblefund, offers investors the potential upside of owning stock with less risk byrelying on convertible securities (top 10 holdings: DISH, DHR, MCHP, WFT, BAC,LRCX, AL, NICE, PCLN, XPO); James Moriarty of Moriarty & Co. sees flat performance ahead for U.S. stocks this year, but plenty of opportunity in overseas markets.
Follow-Up: If in its initial public offering Dropbox seeks a valuation in line with its private-market one, the number would be about nine times trailing sales; it is also likely to emphasize certain non-GAAP financials.
European Trader: Bridgewater Associates’ move to increase its short positions inEuropean equities in recent weeks could founder—and might not be what it seems.
Asian Trader: Howard Wang of JPM Asset Management in Hong Kong says investorswill likely shift back toward growth areas like tech, healthcare, and consumerdiscretionary stocks this year ( Positive on Haier, Jiangsu Hengrui, ChinaResources Phoenix, Tonghua Dongbao Pharmaceutical).
Emerging Markets: Investors are looking for more gains in South Africa now thatnewly elected president Cyril Ramaphosa has released a budget blueprintfocusing on restoring fiscal discipline.
Commodities: An upcoming election in Venezuela and the possibility of U.S.sanctions could send the country’s energy sector into a tailspin.
Streetwise: Many school pension funds own stock in gun companies, as doindexing giants Vanguard and BLK, which are “treading carefully” in the wake ofthe recent school shooting in Florida.