John Zechner
Member since: Jan '01
Chairman at
J. Zechner & Assoc

Latest Top Picks

(A Top Pick Dec 28/18, Down 6%) A direct play on uranium. Uranium has been hurt like most commodities. The price of uranium is around 25$. The price has to go higher since the demand is 50% higher than supply. There's just a lot of inventory. Fukushima put a dent in the demand. However, with China consuming more, it will go up.
(A Top Pick Dec 28/18, Down 37%) One of their satellites crashed earlier this year. The acquisition of Digital Globe, that made sense, is a growth area. However, the acquisition was 3B and they are building a satellite system, it wasn't able to pay down the debt. The balance sheet is bad and there hasn't been returns but he still believes in it.
(A Top Pick Dec 28/18, Down 5%) A surprise is that Fedex became a poster child for the impact of the trade war. Amazon represented 2% of the business and even with them entering the space, it will take some time to build out the infrastructure. The valuation is very cheap right now and there is still some growth. They've recently added to the position.
It's down but trades at 4 times earnings. He met with management recently and they are launching the satellite network. Using the mix of software analytics and hardware will be a growth area. They are well positioned with a reasonable valuation.
They are buying back stocks and breaking the trend of issuing more equity and growing. They have decent light oil, strong production and good cash flow generation. The energy sector risk is there, but it is a good buy among them.