If you like value, this is your company. Auto and auto parts has recently, in the last 3-4 weeks, made a nice turn. We are starting to get away from all the discussion about peak auto. This company is significantly cheaper than any other large parts producer or subassembly company. They have a great growth engine within the business, being the largest and complete auto assembling outsourced. There was about $2 billion in sales in 2016, which could be $7 billion by 2019. They are just taking over producing half of all the 5 series BMWs globally. Trading at 8X earnings, which is relatively cheap compared to its competitors.

A construction company contractor in 3 basic areas. Oil/gas infrastructure pipelines, electric transmission/power generation and communications. They build out infrastructure, and are benefiting as the communication companies build out additional gear on all their towers. There has been a bunch of new pipeline capacity approved that will be built out. Because of electric cars, it is possible we are going to need additional generation and transmission capabilities. (Analysts’ price target is $52.50.)

The largest homebuilder in the world. They operate in 27 states and have $12 billion in revenue. New home sales are growing at greater than 10% in the majority of US states. The inventory of new homes going back to 1988, is just off the lows. The problem has been not enough homes. This company sells into the entry level buyer, and the millennials are just starting to buy homes. If there is a prolonged, economic, slow expansion, there is a pent-up demand for new homes. Dividend yield of 1.1%. (Analysts’ price target is $38.)

This plays into the new iPhone theme. They expect to have 40% more content in the new iPhone than they did in the last iPhone. They make RF chips which are going into everything. The only semiconductor company that has a long-term contract with Apple. Dividend yield of 1.6%. (Analysts’ price target is $277.50.)

Has been bullish US equities since February 2016. In the spring of 2017, financials began to outperform. They had a little rest over the winter, consolidated and then had a very strong run up into earnings. This is the #1 institutional equities trader, and stronger equity markets will be positive for them. They are very strong on the wealth management side. Also, it is pretty levered to the US economy. 1.7% dividend yield.

The lifecos are big beneficiaries of rising rates. There is going to be improving loan growth in US wealth management.

There is going to be improving loan growth in the US. The charge-off for credits is coming in very benign. This bank gives you a number of different revenue streams including wealth management, capital markets and US loan growth. 75% of their revenue comes out of the US.