- Page 1/4
- Next Page
He likes this company. They have the largest market share of the Macau gaming area, and the Chinese love to gamble. The company is very well positioned. There are concerns as to access to cash, access to credit; but as those stabilize, this company’s business can stabilize. Over the long haul, this is a nice place to be.
Prudential (PRU-N), Metropolitan Life (MET-N) or a US bank? He likes financials for the long haul. The only group that has not fully recovered from the 2008 downturn. However, there has been a tremendous run up since the election on the hopes for higher interest rates because of stronger growth from some of the Trump policies and less regulations. He likes them both. They are both trading close to BV. However, insurance is becoming more and more of a commodity business, so he thinks he would give a little edge to MetLife for being bigger. Currently he likes the life insurers because the banks have run up so much.
Prudential (PRU-N), Metropolitan Life (MET-N) or a US bank? He likes financials for the long haul. The only group that has not fully recovered from the 2008 downturn. However, there has been a tremendous run up since the election on the hopes for higher interest rates because of stronger growth from some of the Trump policies and less regulations. He likes them both. They are both trading close to BV. However, insurance is becoming more and more of a commodity business, so he thinks he would give a little edge to this one for being bigger. Currently he likes the life insurers because the banks have run up so much.
A classic meat and potatoes company, and a wonderful long term hold. They have some great niches, including their traditional boiler business. Have branched out overseas, giving them great long-term growth potential. He is a bit cautious on industrials right now. They, along with energy and financials, have really rocketed post the election on hopes of a better economy. If he saw a significant pullback in this quality company, he would be looking to take positions at that time.
As a private equity conglomerate with hedge funds, etc., there is a lot of leverage in this business. If borrowing rates go up, that could impact profitability. Also, volatility may not help their business. Trading at a very reasonable valuation and offers a good payout. This is sensitive to interest rates.
Great company and has done a wonderful job over the decades, morphing from an old-line glass company into something that is really in the Tech mainstream. To the extent that there are some deemed protectionist policies promoted by Trump, he wonders what that does to a company like this, because so much of their business is global. There could be some real volatility.
This has basically split into 2, and he thinks that was wise corporate engineering, because investors are now going to be able to pick which part of this legacy they want to invest in. Thinks a lot of people are still digesting what the balance sheet looks like and what the outlook is. He doesn’t think they are overvalued.
This had a good 2016. The whole management team has done a wonderful job over the years of keeping the company in the right themes in the technology atmosphere. Also, they really have embraced the concept of returning money to shareholders. The rate of dividend growth, double-digit percentage, will probably continue. Dividend yield of 3.2%.
Healthcare. He is bullish on this sector. People on both sides of the political aisle are scared to death, because healthcare costs are just jumping double digit percentages, and questioning what can be done about that. His analysis is that the downside risk, should they repeal Obamacare and do nothing about it, is probably less then if they repeal it, put a new name on it, prop it back up, and it is business as usual, it would have tremendous upside. Valuations are far more tempting than they were a year ago.
A decent play on a healthcare rebound. This is really a triumvirate of 3. You have Amerisourcebergen (ABC-N), Mckesson (MCK-N) and Cardinal Health (CAH-N). They have 90% of the drug distribution business. It’s a low margin business, but the good news is that everyone who wants to get into it leaves it for these 3. The valuation is far more attractive now.
This is such a high quality and the valuation is so cheap. They have the leading compounds for Hep C and HIV treatments. The concern is that there is going to be some kind of price controls on these life-saving drugs, but what people fail to realize is that these drugs actually save costs in the system, because it keeps people out of the hospitals. This company has a very bright future as a real leader in the healthcare space.
This is for the risk-takers. The stock was close to $70 a share within the last 18 months. Now it is around $13. The concern is that their business model has gone broke. They decided they wanted to acquire companies instead of spending a lot of money in the lab in R&D and not generating anything. They just reaffirmed guidance, and they should earn $4-$4.50. On a $13 stock, if they just earned half of that, it is one of your cheapest companies in the whole healthcare space. If we just get some stability in the outlook and know what is going to replace Obama care, this stock could easily double over the next 5 years.
Market. We have a simple problem called Valuation. Markets have run up from about 11 months ago. Their lows in February were up about 30%, but since the election we are up close to 10%. The question is, are these valuations sustainable. The NASDAQ hit 5 record highs in 6 trading days last week. There are some significant headwinds including interest rates, up nearly 100 basis points from last summer, the strengthening US$ given that US multinationals get up to half of their revenue from overseas, corporate earnings had a solid month in Q3, and thinks they will come through in Q4, but what are they going to do going forward.