Latest Expert Opinions

Signal
Opinion
Expert
BUY
BUY
January 23, 2013

081660-KRX Fila (Korean Exchange) (How do I invest in Titleist?) Fila, a clothing company based in Korea, has had a pretty hard time. Titleist is effectively a golfing game and presumably you want to tie into the recovery of the US consumer. Consider going into Callaway, which is the same kind of story and the stock has turned around. Recently put in a new CEO and are trimming the business down, moving off non-core products and focusing purely on the golf. This is a 2-3 year story so make sure you know when to get out.

Callaway Golf (ELY-N)
January 23, 2013

081660-KRX Fila (Korean Exchange) (How do I invest in Titleist?) Fila, a clothing company based in Korea, has had a pretty hard time. Titleist is effectively a golfing game and presumably you want to tie into the recovery of the US consumer. Consider going into Callaway, which is the same kind of story and the stock has turned around. Recently put in a new CEO and are trimming the business down, moving off non-core products and focusing purely on the golf. This is a 2-3 year story so make sure you know when to get out.

Darren Sissons
Vice President and Partner, Campbell Lee & Ross
Price
$6.310
Owned
Yes
COMMENT
COMMENT
January 23, 2013

Everything was working well until Spain imploded. This was followed by a price war with Vodafone (VOD-Q). Cut the dividend and the buy-back and the stock rallied quite substantially. Cash was used to pay down debt. Some Latin American countries have put capital controls in place so they can’t repatriate capital, which is a concern. Longer-term, if they are able to pay down their debt, this is a longer-term growth story. If you want less risk, Deutsche Telecom or Vodafone would be some alternatives. There will be some upside someday with Latin America providing a lot of it.

Telefonica S.A. (TEF-N)
January 23, 2013

Everything was working well until Spain imploded. This was followed by a price war with Vodafone (VOD-Q). Cut the dividend and the buy-back and the stock rallied quite substantially. Cash was used to pay down debt. Some Latin American countries have put capital controls in place so they can’t repatriate capital, which is a concern. Longer-term, if they are able to pay down their debt, this is a longer-term growth story. If you want less risk, Deutsche Telecom or Vodafone would be some alternatives. There will be some upside someday with Latin America providing a lot of it.

Darren Sissons
Vice President and Partner, Campbell Lee & Ross
Price
$14.290
Owned
Unknown
COMMENT
COMMENT
January 23, 2013

(French Exchange.) He prefers ABB (ABB-N). Balance sheet is kind of similar but ABB has a very strong growth profile. Dividend has grown substantially over the last few years. Very tied to the modernization of large population countries in the modernization of electrical growth. (See Past Picks.)

(French Exchange.) He prefers ABB (ABB-N). Balance sheet is kind of similar but ABB has a very strong growth profile. Dividend has grown substantially over the last few years. Very tied to the modernization of large population countries in the modernization of electrical growth. (See Past Picks.)

Darren Sissons
Vice President and Partner, Campbell Lee & Ross
Price
$0.000
Owned
No
SELL
SELL
January 23, 2013

Don’t confuse a good story with a good investment. Tripled over the last 3 years and the market expected this to continue. Really a product of a fund-filled story. As Apple moved higher on earnings, mutual funds came in behind and reweighted to the index which pushed it higher and higher on supply and demand. Unfortunately, expectations have come down and funds have caused more volume to go into the market and pushed the price down further and further.

Apple (AAPL-Q)
January 23, 2013

Don’t confuse a good story with a good investment. Tripled over the last 3 years and the market expected this to continue. Really a product of a fund-filled story. As Apple moved higher on earnings, mutual funds came in behind and reweighted to the index which pushed it higher and higher on supply and demand. Unfortunately, expectations have come down and funds have caused more volume to go into the market and pushed the price down further and further.

Darren Sissons
Vice President and Partner, Campbell Lee & Ross
Price
$514.005
Owned
No
DON'T BUY
DON'T BUY
January 23, 2013

(Korean Exchange.) Samsung. What you are doing is buying continuing expectations of further growth. This is a little bit challenging. Also which Samsung are you buying? You have chips, televisions, shipyards. This one is electronics. Chips area is going to have some challenges. Had a big fight with Apple (AAPL-Q) and their chips will most likely ultimately moved to Taiwan semiconductor. Next, what happens if their phones do not become the next big thing? Wait for it to be on sale.

(Korean Exchange.) Samsung. What you are doing is buying continuing expectations of further growth. This is a little bit challenging. Also which Samsung are you buying? You have chips, televisions, shipyards. This one is electronics. Chips area is going to have some challenges. Had a big fight with Apple (AAPL-Q) and their chips will most likely ultimately moved to Taiwan semiconductor. Next, what happens if their phones do not become the next big thing? Wait for it to be on sale.

Darren Sissons
Vice President and Partner, Campbell Lee & Ross
Price
$0.000
Owned
Unknown
COMMENT
COMMENT
January 23, 2013

Big tuck-in acquisition company but not all have worked out. Goodwill is an issue but they have mountains of cash and has recently started talking about returning capital to shareholders. You need to think about whether or not they can make the transition that ultimately IBM has done, high growth company into a company that has dividend growth profiles and a total return focus. He is staying away.

Cisco (CSCO-Q)
January 23, 2013

Big tuck-in acquisition company but not all have worked out. Goodwill is an issue but they have mountains of cash and has recently started talking about returning capital to shareholders. You need to think about whether or not they can make the transition that ultimately IBM has done, high growth company into a company that has dividend growth profiles and a total return focus. He is staying away.

Darren Sissons
Vice President and Partner, Campbell Lee & Ross
Price
$20.620
Owned
No
BUY
BUY
January 23, 2013

Broader issues that are driving insurance companies are effectively interest rates. Until we see a rise in interest rates, they will constantly be under pressure and it will be hard for them to grow. Longer-term, in an environment where the US improves, more employment is secure, Canada stabilizes and there is growth in Asia, you will see higher earnings and this is a company to buy and hold. There are other alternatives.

Manulife Financial (MFC-T)
January 23, 2013

Broader issues that are driving insurance companies are effectively interest rates. Until we see a rise in interest rates, they will constantly be under pressure and it will be hard for them to grow. Longer-term, in an environment where the US improves, more employment is secure, Canada stabilizes and there is growth in Asia, you will see higher earnings and this is a company to buy and hold. There are other alternatives.

Darren Sissons
Vice President and Partner, Campbell Lee & Ross
Price
$14.670
Owned
Yes