WATCH
Acquiring Yahoo and not having to give up a lot for it. Coming up with the launch of Windows7 in October and there is a pent-up demand for a new operating system that won't be reflected until 2010-2011. Earnings were disappointing.
COMMENT
Market is concerned about the delay in the 787, which is a critical component to their growth story going forward. Cost overruns have continued. Their defence business has been going quite strongly. On a 3-year time horizon they should be in full production.
DON'T BUY
The issues are surrounding their industrial side but the financial side was actually not that bad over the last quarter although part of the gain was because they reduced provisions for losses. There has also been some weakness on the healthcare side. Would look at other stocks.
COMMENT
Refiners have had a very challenging period. Going forward there are other opportunities to put your money, as he doesn't see a dramatic recovery in the sector.
BUY
Deepwater oil drilling play. Have a lot of growing opportunities in the deep waters off Brazil. Day rates have held up relatively strongly.
COMMENT
Chevron (CVX-N) and Exxon (XOM-N) major integrateds have so many opportunities to grow through acquisition, upstream through downstream and chemicals. Also have stable dividends and great cash flow.
COMMENT
Chevron (CVX-N) and Exxon (XOM-N) major integrateds have so many opportunities to grow through acquisition, upstream through downstream and chemicals. Also have stable dividends and great cash flow. This one is one of the premier ones but because of its size is becoming more challenging to increase production growth.
DON'T BUY
2nd tier integrated oil company with good exposure to retail outlets as well as a lot of international plays on the E&P side. At this point there are better plays than this one.
DON'T BUY
Has been challenged over the past several years. Criticized for largely missing the boat on the smart phone trend without enough models in that space. Have reversed this and have improved their offerings but are still not penetrating into the US, which is a critical area.
BUY
Tied to the resurgence in the overall economy. Their agricultural business is going to be tied to a growth in the international markets. Until the inventory equipment is drawn down there will be demand for new products. For a 3-year time horizon you could Buy or Hold.
COMMENT
Time to short trade this one? Wouldn't recommend this. Last quarter was fantastic and beat expectations handily. Also sitting on excess liquidity, which could be as high as $70 billion that can be redeployed and could add up to $1 in earnings.
COMMENT
Very good at managing cash flow so it is good for growth and protection of dividend so dividend should be safe. 5.8% yield. Growth is going to be challenged because of problems on the enterprise side. Wire line side continues to lose lines.
PARTIAL SELL
The quarter was fine but has had a good run. If you own, consider pulling back a little bit.