Barron's Digest June 19, 2006 Issue
Stocks: (IPG)(COF)(C)(JPM)(WM)(CBH)(NFB)(BBT)(RTP(BHP)(DEO)(FWLT)(ABB)(MU)(ORCL)
(LYO)(YRCW)(DHI)(NEM)(OVTI)(EFA)(BGT)(PMF)(ARW)(ANF)(KOSP)(DRC)(CHAP)
(MEG)(MWA)(CSG)(TRB)(LCAPA)(TG)(MRVL)(EBAY)(QCOM)(SVU)(JBLU)(DRL)
(DTPI)(AAI)(TASR)(POZN)(AMKR)(CHL)(CTRIP)(TOMO)(SOHU)(SINA)(BIDU(GOOG)
(XOM)(PFE)(IBM)(HPQ)(AMGN)(BA)(T)(MRK)
Barron's writes that Interpublic Group is trading near a 52-week low at $8.57. The company may be moving away from its numerous problems which have included several financial restatments. The company refinanced some of its debt and combined two of its large ad agency properties. The company is also back on a normal reporting schedule for its financials.
Capital One Financial was instrumental in changing the credit card industry in the 1990s. Recently it has been acquiring banks including North Fork and Hibernia. Investors became concerned about whether Capital One could integrate the properties it has bought. North Fork's mortage business has also been a concern. However, some analysts believe that if Capital One can become a large consumer financial player, it can compete with Citigroup, JPMorgan Chase, Washington Mutual, and Commerce Bank. Capital One's first quarter earnings were up 74% from a year ago to $833 million.
Financial researcher Robert Haugen says that the volatility of the stock market has increased recently and the the trend will continue. Much of this is the stock market reacting to its own moves instead of actual news or events. He fears that the increase in volatility could eventually lead to a depression of the economy.
Metal prices have slumped and may have created some bargains in companies that produce them including Rio Tinto and BHP Billiton.
Diageo, the British distiller is up 12% in the last 52-weeks but it may do even better. The company's premium brands like Smirnoff have the chance to raise prices, and the company is expanding overseas expecially in China. Consumption of spirits in the U.S. could rise 11% in the next five years occording to one industry expert.
Barron's Midyear Roundtable of professional investors made their picks for the second half. Art Samberg likes Foster Wheeler, ABB, Micron Tech, and Oracle. John Neff favors Citigroup, Lyondell Chemical, YRC Worldwide, and D.R. Horton. Fred Hickey would be long Newmont Mining and short OmniVision Tech. Bill Gross like funds EFA, BGT, and PMF. Scott Black likes Arrow Electronics and Abercrombie & Fitch. Oscar Schafer likes Kos Pharma and Dresser-Rand Group. Merrill Witmer likes Chaparral Steel , Media General, and Muelier Watter Products. Mario Gabelli like Cadbury Schweppes, Tribune, Liberty General, Ladbrokes and Tredegar. Abby Cohen likes Marvell Tech, eBay and Qualcomm. Archie MacCallaster likes DuperValu, JetBlue and Doral Financial.
Some of the highest valued small-cap stocks have gotten even more expensive. Companies like consulting outfit DiamondCluster trades at 909 times earnings Taser trades at 373 times earnings. Amkor Tech at 276 times. AirTran at 400 times. Pozen, the biotech company, at 305 times.
China's Shanghai B-Shares index is down 10% in the last month and American depositary receipts of Chinese internet companies are donw about 19% from highs of the last three months.
If China Mobile is able to change the country's internet rules, it could affect some stocks, but the basic trend of internet use in China is still up. Among the stocks that could bounce back are Ctrip.com Tom Online, and Sohu.com. China Mobile may if the government curtails the sale of cellphone ringtones and text messaging. The company would then produce its own offerings called "mobile value-added services". This could cut into the business of companies like Tom. Chinese search engine Baidu.com has done well, up over 34% since May on takeover rumors including that Google may buy the company.
Click fraud may hurt Google and Yahoo!'s pay-per-click model Detection software could help stop the problem, but, if its grows worse, these companies could be hurt.
The JPMorgan Intrepid America Fund is a large-cap fund that has a 14.4 % return over the three years ending June 15. The Intrepid America funds top ten holdings are Exxon, Pfizer, Bank of America, IBM, HP, Amgen, Boeing, AT&T Merck, and Oracle which as a group make up almost 19% of the fund's holdings.
Douglas A. McIntyre
(LYO)(YRCW)(DHI)(NEM)(OVTI)(EFA)(BGT)(PMF)(ARW)(ANF)(KOSP)(DRC)(CHAP)
(MEG)(MWA)(CSG)(TRB)(LCAPA)(TG)(MRVL)(EBAY)(QCOM)(SVU)(JBLU)(DRL)
(DTPI)(AAI)(TASR)(POZN)(AMKR)(CHL)(CTRIP)(TOMO)(SOHU)(SINA)(BIDU(GOOG)
(XOM)(PFE)(IBM)(HPQ)(AMGN)(BA)(T)(MRK)
Barron's writes that Interpublic Group is trading near a 52-week low at $8.57. The company may be moving away from its numerous problems which have included several financial restatments. The company refinanced some of its debt and combined two of its large ad agency properties. The company is also back on a normal reporting schedule for its financials.
Capital One Financial was instrumental in changing the credit card industry in the 1990s. Recently it has been acquiring banks including North Fork and Hibernia. Investors became concerned about whether Capital One could integrate the properties it has bought. North Fork's mortage business has also been a concern. However, some analysts believe that if Capital One can become a large consumer financial player, it can compete with Citigroup, JPMorgan Chase, Washington Mutual, and Commerce Bank. Capital One's first quarter earnings were up 74% from a year ago to $833 million.
Financial researcher Robert Haugen says that the volatility of the stock market has increased recently and the the trend will continue. Much of this is the stock market reacting to its own moves instead of actual news or events. He fears that the increase in volatility could eventually lead to a depression of the economy.
Metal prices have slumped and may have created some bargains in companies that produce them including Rio Tinto and BHP Billiton.
Diageo, the British distiller is up 12% in the last 52-weeks but it may do even better. The company's premium brands like Smirnoff have the chance to raise prices, and the company is expanding overseas expecially in China. Consumption of spirits in the U.S. could rise 11% in the next five years occording to one industry expert.
Barron's Midyear Roundtable of professional investors made their picks for the second half. Art Samberg likes Foster Wheeler, ABB, Micron Tech, and Oracle. John Neff favors Citigroup, Lyondell Chemical, YRC Worldwide, and D.R. Horton. Fred Hickey would be long Newmont Mining and short OmniVision Tech. Bill Gross like funds EFA, BGT, and PMF. Scott Black likes Arrow Electronics and Abercrombie & Fitch. Oscar Schafer likes Kos Pharma and Dresser-Rand Group. Merrill Witmer likes Chaparral Steel , Media General, and Muelier Watter Products. Mario Gabelli like Cadbury Schweppes, Tribune, Liberty General, Ladbrokes and Tredegar. Abby Cohen likes Marvell Tech, eBay and Qualcomm. Archie MacCallaster likes DuperValu, JetBlue and Doral Financial.
Some of the highest valued small-cap stocks have gotten even more expensive. Companies like consulting outfit DiamondCluster trades at 909 times earnings Taser trades at 373 times earnings. Amkor Tech at 276 times. AirTran at 400 times. Pozen, the biotech company, at 305 times.
China's Shanghai B-Shares index is down 10% in the last month and American depositary receipts of Chinese internet companies are donw about 19% from highs of the last three months.
If China Mobile is able to change the country's internet rules, it could affect some stocks, but the basic trend of internet use in China is still up. Among the stocks that could bounce back are Ctrip.com Tom Online, and Sohu.com. China Mobile may if the government curtails the sale of cellphone ringtones and text messaging. The company would then produce its own offerings called "mobile value-added services". This could cut into the business of companies like Tom. Chinese search engine Baidu.com has done well, up over 34% since May on takeover rumors including that Google may buy the company.
Click fraud may hurt Google and Yahoo!'s pay-per-click model Detection software could help stop the problem, but, if its grows worse, these companies could be hurt.
The JPMorgan Intrepid America Fund is a large-cap fund that has a 14.4 % return over the three years ending June 15. The Intrepid America funds top ten holdings are Exxon, Pfizer, Bank of America, IBM, HP, Amgen, Boeing, AT&T Merck, and Oracle which as a group make up almost 19% of the fund's holdings.
Douglas A. McIntyre
posted by douglas mcintyre at 4:36 PM
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