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Markets. He is looking beyond the US government shutdown and debt ceiling and just looking at companies, balance sheets and earnings prospects. Companies perform in the environment they are given. They have no choice. His job is to find those companies that are going to do the best job and are best protected in that environment. Any future gains for the markets are going to have to come off earnings growth and not multiple revisions higher. He is looking for earnings growth and acceleration of profit margins, etc.

The issue with this company is that they are really not in complete control with their own destiny, i.e., China is a big aluminum producer. This is one of those situations where it is just a pure commodity play and because of this, he would steer clear.

Procter & Gamble (PG-N) or diversify with an ETF? In a lot of ways, mutual funds or ETFs are intended to give you diversification with smaller amounts of money and low costs. Until you build up a portfolio of some size, and can diversify in terms of numbers of positions, he would probably go with ETFs or mutual funds. Regarding Procter & Gamble, this kind of stock has befuddled him. In the last 6-8 months, these kinds of stocks are coming down in price because they were pushing up against their higher end on an evaluation basis.

Twitter IPO is coming on soon. What is your opinion? Is the same thing going to happen that happened to Facebook (FB-Q) or will it be dealt with a lot differently? It all comes down to valuation and whether you are pricing your IPO correctly. He does not buy IPOs. There tends to be less information in the public market off an IPO than if it’s a public traded company that has a history. Be patient and let it come public and be willing to pay a higher price for greater certainty.

Purchased this one about 3 months ago. In a nice uptrend from the 2008 bottom. Got their hand caught in the cookie jar with GE Capital with far too much exposure to the financial side of their business. Now trading at about 2 multiple points below what the average US industrial is trading at. Time is healing this company and they have streamlined their businesses.

(A Top Pick Sept 20/12. Up 25.8%.) This is a theme that he thinks has legs. It’s a theme on content and a theme on mobility. Their parks only make up about 30% of their total revenue. Good content.

(A Top Pick Sept 20/12. Up 45.19%.) The big catalyst for this company is HBO.

(A Top Pick Sept 20/12. Up 81.28%.) Have been growing organically, but also through acquisitions. Supply some of the major restaurants and fast food companies with ranges, cook tops and kitchen food service type equipment.

Has gone through a lot of the turbulence that the rest of the banks have had. Feels the less senior banks, such as this one, offer more upside given a very stable economy but, of course greater reward comes with more risk. Still trading at less than tangible Book. All of these banks are making money on cost cutting because there is really no solid revenue generator for them. Yield curve is fairly flat so they can’t make money off the spread as they traditionally do. It is generally tough time for the banks, but it will always be so.

A very fine company. Producer of low horsepower motors, lawnmowers, etc. Had some troubles over the last 6 months or so, which he feels was weather related. This is an opportunity as people will come back to what their needs are. Dividend is very safe. Debt is only 28% of capital. About a 6% free cash flow yield.

Sold his holdings before the spinoff of their pharmaceutical side into AbbVie (ABBV-N). They are left with the nutritional, diagnostics and medical devices. Trading at about 14 or 15 times earnings. Growing at 11%-13% per year. Very, very stable company and a great core position in your portfolio.

Has done very well. Really represented a good place to hide. Great distributions through their dividends. Altria (MO-N) is the domestic (US) side of the tobacco play and has much, much more regulatory risks. Growth is decent and the dividend is good.

Difficulty here is that their products continue to get commoditized. They have a headwind, which is that the price of their product continues to fall. Volumes are rising. Growth is low.

Chipset manufacturer. Has proven to be a good stock for him. The #3 chipset maker globally now and moving up because it controls 95% of the market in LTE chips. Not expensive.

Great company. Have about a $330 billion backlog. Finally in full production on the 787 after the well orchestrated problems they had. New planes have the fuel efficiency that allows airlines to go from pretty boring. ROC, to pretty exciting ones. This will keep the company going for quite some time.