Barron’s Saturday summary: positive on BTU, TTWO, MSFT, CARLB.DK Cover story: Puerto Rico has $53B of tax-supported debt outstanding from more than a dozen issuers, and nearly $70B in total debt, along with more than $30B in unfunded pension liabilities, all of which could hamper attempts to revive its fragile economy, which some experts say may not be able to handle higher taxes. Features: 1) Positive on BTU: As coals supply-and-demand situation improves, and with earnings and prospects on the rebound, Peabody looks like a long-term winner, particularly if it reduces debt, a goal of top management. 2) Positive on TTWO: Story says theres reason to believe Take-Two will break out of a dozen-year cycle of jumps and spills, shares have the potential to gain 30% over the next year. 3) Positive on MSFT: Shareholders should be pleased with announced departure of chief Steve Ballmer, story says theres a lot that Microsoft could do to benefit holders from a strategic and financial standpoint if it gets the right leader. Tech Trader: Chances of GOOG taking over the NFLs Sunday Ticket package seem overblown according to Matthew Harrigan of Wunderlich Securities, who says company is more likely to partner with DTV, which currently has rights to the package; nevertheless, says the story, Internet TV will play a significant role in the years ahead. Trader: Spin-offs continue to be good business for corporate America and its shareholders, and seem to work well in a bull market, with CSD outperforming the broad market for four years; Positive on TFX: Mid-cap medical device company probably deserves a second look, as it offers exposure to a relatively defensive sector within health care, better-than-average growth potential, strong free cash flow, and an undemanding valuation compared with both its history and the market. Follow-Up: Positive on BKS: Troubles with Nook division tend to overshadow profitable bookstore operation, but a large dividend or share buyback program, coupled with new management, could send shares a lot higher; Positive on HOT: Chain continues to benefit from improving trends in business and leisure travel, with rising occupancy rates and room prices, amid tight supply in established markets and strong growth in developing countries. Hedge Funds: Interview with Mariko Gordon, Founder, Daruma Capital Management, which has consistently topped the market since its start in 1995, with a favorite holding being PODD; Interview with David Kotok, CEO and Chief Investment Officer, Cumberland Advisors, who likes energy and housing equities (top ETF picks: RSP, XLE, XHB, KBWB, KRE, KIE, XBI). European Trader: Positive on Carlsberg: Now could be a good time to pick up shares of Danish brewer, since prospects look good and shares are cheaper than rivals Heineken and BUD. Asian Trader: With Fed tapering about to begin, weakness in Asia is being exposed, with biggest problems coming in Indonesia and India, which have the regions highest current-account deficits; recent market woes would have been worse were it not for encouraging manufacturing numbers from China. Emerging Markets: Investors must decide not only whether emerging-market stocks look cheap, but also whether the currencies behind them could slide even more. Commodities: The plummeting real in Brazil, the worlds biggest producer of Arabica coffee and sugar, is creating a triple threat to both commodities. CEO Spotlight: ADBE chief Shantanu Narayen says the economic crisis gave him the catalyst he needed to remake the company. Streetwise: Cautious on Z: Given current share price, Zillows future growth will have a hard time living up to todays breathless anticipation. Special section: Barrons list of the Top 100 Independent Financial Advisors, led by Peter Mallouk of Creative Planning, Martin Bicknell of Mariner Wealth Advisors, and Steve Lockshin of Convergent Wealth Advisors.
Posted on: Sat, 24 Aug 2013 19:10:56 +0000
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