Market. He has worked in the auto industry in manufacturing. The auto industry is the scale industry. You lower costs when you build cars on platforms. Alliances and mergers help this. Fiat Chrysler's merger with Renault would be an example of this. Renault has electric cars out there, but he does not know if they will be one of the winners. There are controversies in the electric car space. Internal combustion engines have to become a lower percentage of auto sales.

He owns both V-N and MA-N. He prefers MA-N a little because it is more exposed to international travel and it's more exposed to credit as opposed to debit cards. They are more future proof because of investments in alternative payment systems. He thinks a recession will not affect their business materially because of growth in electronic payments. But the equity will probably go down in a bear market. He does not predict a recession in the next 12 months.

It is a good and well managed company. It is a protein company and there are problems with protein pricing due to epidemics in livestock recently. He thinks it is 'too-hard-to-do'. It is too risky.

It is big and liquid and has a solid balance sheet. They have an improving margin profile. The 365 initiative involves paying monthly or annually instead of upgrading whenever they remove support for old versions. They are a major cloud computing enabler. This gives them lots of recurring revenue at high margins. To some extent they are turning the company into a utility.

He has not been an investor in steel distributors. He is concerned that as the market improves, you are buying more inventories. It is hard to have a steadily increasing dividend policy. A lot of the margin has to do with selling prices going up. He has not been a fan of them as public companies.

It is a fine company. It is on his watch list. He does not own it because of his concern with regulatory issues. They have so much share of search that it attracts the attention of regulators. He anticipates the separation of YouTube from Google Search and that would not be good. Wait for some clarity from regulators.

He likes it and has owned since it was spun off. The 5G cycle has started to kick in. They need to ramp up spending to get ready for 5G. All of these companies do some business with Huawei and that concerns him.

He is not a fan of the car from the point of view of performance. There is a lot about the body design that he does not find to be comfortable, however he does not take personal concerns into account when analyzing them. This company has needed to raise capital over and over again. If they are not generating free cash flow, then he cannot evaluate it.

He has owned it before. It has an excellent management team. But he thinks we have seen the peak of the aircraft cycle. He would keep it on the watch list.

(A Top Pick Apr 10/18, Up 40%) It was added to the S&P last year than helped. Huawei is part of the issue as no one can sell its products.

(A Top Pick Apr 10/18, Up 2%) He exited soon after recommending it. Machine tool orders evaporated. People blame BREXIT, a slowing economy and so on. It is a great company and he is waiting for an inflection in capital spending.

(A Top Pick Apr 10/18, Down 1%) They have a bunch of technologies that are hard to escape. They are the only builder of certain components for detecting ionizing radiation that are used in so many products such as hospital test equipment.

He does not recommend European banks because of BREXIT. It means as Britain exits, ING-N have to send capital to their UK branches. And now they have to fund their US branches also.

It is a big company. He never heard a compelling plan for resolving issues from a few years ago. Their medical equipment business is not in the parts of medical equipment that are growing very well.

He can't judge the difference between this and NOK-N. If Hauwei continues as a competitor, they will not have to generate the same financial results in their business as Western companies do. He does not think ERIC-Q will position themselves to increase production until they are told China is being kept out of the market.