Fabulous entry point here. They had a weak quarter and stock sold off. Reason was they missed on margins from international priority and it was capacity issues which traditionally they are able to manage. They even make money in recessions. Thinks there is support in the stock.

Came out last week with very, very good earnings. Trading below tangible book value. They have improving ROE. They keep selling off problem assets and now they are releasing reserves from holdings.

Markets. The pull back is more of an opportunity to put some of the cash you have to work. Markets go through cycles. Retail investors are cautious about getting back into equities. There is still some runway in this bull market. She is bottom up but selective in picking her spots.

She has city group but you could look at them the same way. There is a cushion if something goes wrong. Nobody knows what is under the hood on these so you have to have that cushion. A lot of assets are tied to housing, which is improving.

It is pretty compelling at this point. Valuations are pretty compelling. Issues are size of company and they reinvented part of the tech space and now what are the next steps. Prefers Qualcom because they make the innards of the handsets.

Very great job. People want to own them. Impressive growth over the years. Tempered down over the last little while. The story is positive. You probably won’t get hurt but she thinks the multiple has limited expansion potential. There are better opportunities out there. Others in the space are trading at 10 times earnings.

They are currently being bought out. If another player comes along you will get a bump up, but otherwise the price is where it is supposed to be.

There is some pretty good momentum with auto makers. Prefers GM, who was bailed out.

Stable business, great brands. Comes back to the valuation. Doesn’t want to pay this much for a company. Doesn’t see enough multiple expansion in this one.

Valuation is too high. Have been doing a great job. Too high a multiple. Prefers to pay less for companies. What is happening today is driving the value out of it.

(Top Pick Jan 11/13, Up 12.52%) Have three ways they generate money. Largest balance sheet through which they invest money. The fees they collect from third party capital. Performance Bonus from funds they manage. They are doing a lot of work on rolling over some of their legacy funds so they can pay a performance bonus. Expects them to continue to be very strong. Yield changes based on what they collect.

(Top Pick Jan 11/13, Up 10.88%) Multiples across that space are very, very low. Company has gone through a weak patch and fell behind peers. The first step is to look at the valuation but next is the balance sheet – fine, management – they weren’t aware of where the retail investor wanted them, you might have some positions being filled on the merchandising side.

(Top Pick Jan 11/13, Up 2.20%) Good balance between legacy systems and current. Acquisitions have been in the right space and they have been growing their service revenues.

[Time did not permit a comment on this top pick during the show but said this today about Ford (F-N): There is some pretty good momentum with auto makers]. Prefers GM, though.

Largest asset management firm in the world. 3 Trillion. Acquired iShares suite. That has been doing well. Have traded pretty positively in the last little while and will do so as long as the markets do well.