This has been diversifying into things like vitamins, etc. The new CEO is the 1st non-Swiss insider to run the company since about 1905. He is looking to improve the working capital management of the company, which is releasing capital. It’s a gradual, slow growth dividend story, which he likes. Earnings are attractive. The downside is that it is so large that no one can buy it, so there is no long-term upside from that. Feels it has upside from here.

A dividend aristocrat, gradually increasing the dividend every year. They are in medical devices. Any increase in surgery, hospital time and heart disease would be an upside for this story. It’s been a relative laggard for the group, but has been a very good performer longer-term, and has rewarded shareholders very well. Sees this as a mutual fund of device companies.

If you bought this before the sale of Verizon wireless, you received a very large one-time special dividend of shares along with cash. If you did not participate in the dividend, then you are probably significantly underwater. Since then, a number of things have happened. European telcos are now doing fibre to the homes and they not seeing top line growth or revenue growth. Longer-term, there is some good upside. It’s also down a little on the noise of BREXIT risk. If looking for a global company with a decent dividend with some upside, it’s reasonable value at these levels.

Semiconductor equipment guys, who provide equipment for semiconductor companies to make chips. Something that is sort of interrupting the equipment market is that China is building out a semiconductor industry and are making gobs of money. The stock hit new highs and continues moving higher. Feels it is a very elevated stock. China moving into the market will cause semiconductor prices to come down longer-term, so he would stay away.

FANG stocks have very expensive valuations, and in many cases, it is indicative of the light stage in the market where the economy is flowing through the higher growth names. They are also the natural fund flows for a lot of ETF's. If we get a correction, the very expensive stocks tend to come under pressure significantly. He recognizes this is a great company, but would tend not to buy it here. As an alternative, consider Infosys Technologies (INFY-N).

A lot of money is flowing into ETF's, and they are buying the indexes. However, the things moving the indexes, for example the emerging-market market, are things like TENCENT (TCEHY-5) and Ali Baba (BABA-N). Those portions are being heavily bought, because you don't just have Vanguard buying their stocks, you have all companies that are needing global exposure, buying the same stocks. As they keep getting more and more capital, they keep buying more of the same stocks. If we get a correction stocks are going to sell en masse. He would rather pick individual stocks.

(A Top Pick Jan 27/17. Up 20.1%.) There was a big upside when Hunter Harrison joined the firm. The secular story is really one of taking costs out of the company and making it more efficient. He expects the story to continue, and for the stock to continue to grind higher.