HedgeFundLIVE.com — The following is a summary of the major articles in Barron’s magazine for Saturday, February 26, 2011.
· MMM: 3M is the cover story and Barron’s is positive on the stock. The article says if sustainable top line growth for the next several years can
· APD – positive comments; despite the aborted ARG deal, the stock has further upside.reach 7%- 8% per year – annual earnings could increase by at least 60% during the next five years. In our opinion, it could be tough to sustain topline growth of that level over the next few years given the uncertain economy. HFL
· Xstrata – positive comments – the co has strong growth potential owing to its position in thermal coal and copper.
· ICO – positive comments; the co could become a takeover target. But even if it isn’t bought, growth prospects are strong. The takeover rumours on ICO have been around for quite a while, we think that there are better names to look at if you are looking for a takeover in the coal space. HFL
· Pos. comments on “high quality” stocks – CMCSA, TWX, LLY, MMM, BA. We don’t really like the cable space for reasons we’ve discussed in the past. We do like LLY and BA on the long side however. HFL
· DELL, HPQ – the companies are struggling w/their services acquisitions (EDS for HPQ and PER for DELL).
· Chinese internet IPOs discussed.
· INTU – positive comments; the stock could have upside to $65.
· WHR – positive comments; sentiment is very depressed on the stock and valuation is near its lowest ever. I must admit, WHR has done a fantastic job navigating the weak US economy. I still don’t like it long though as input costs are rising and so are rates and their LatAm business could be slowing down. HFL
· WTW, PCLN – neg. comments on both; sentiment getting very frothy for each and valuation is expensive. Good luck shorting PCLN.