Art Samberg's 6 Picks for 2008 - Barron's

Art Samberg, Chairman and CEO, Pequot Capital was one of Barron's 2008 Roundtable participants. He likes six U.S.-traded stocks that include two plays on Brazil, a natural gas producer, and a Chinese advertiser:

• Ultra Petroleum (UPL) - "a gas exploration and production company with some of the best exploration assets in North America." Its all-in costs are among the lowest in the industry, and it boasts almost 100% drilling success. Its Rockies Express pipeline, which begins operating this month, will boost output. Natural gas prices could easily rise relative to crude.
• MEMC Electronic Materials (WFR) - the solar boom has driven prices for its polysilicon wafers to 10-times normal. Its "fluidized-bed" production has a big cost advantage over Siemens' (S) competing approach.
• Qualcomm (QCOM) - a play on 3G GSM [global system for mobile communications] phones. If it gets a likely 2.5% royalty-rate court settlement with Nokia (NOK), EPS (2009 current est. $2.38) could jump to $3.
• Focus Media (FMCN) - in China, LCD ad panel advertising is hugely popular, drawing as much as 10% of ad budgets. FMCN has an 80% market share.
• Brazil plays Gafisa (GFA) and America Movil (AMX) - Latin America avoided subprime investments that have wreaked havoc in the rest of the world. Brazil has huge excess liquidity and a growing middle class. Homebuilder Gafisa is "dirt cheap" given the recent increase in Brazilian property values. Wireless provider America Movil stands to gain from a recent easing of competition that has seen minutes-of-use boom.

Comments

[Proud Canadian:]

Qcom will get MORE than 2.5% royalty rate.

2008 Jan 20 02:06 PM

[Proud Canadian:]

Qualcomm is THE play for 2008 !

2008 Jan 20 02:08 PM

[Proud Canadian:]

Quallcomm is now the first mobile chips maker in the world, before Texas Instruments, in the last two quarters. Correct me if I'm wrong.

2008 Jan 20 02:13 PM

[Toto-13:]

Art Samberg have a very mediocre performance record and yet I think the editor here did a great job at presenting his picks. Sometimes I wonder how they select the best international managers and pair them with the weakest U.S. managers, but that's Barron's for you.
Check what the true experts like Marc Faber say here WallastonInvestments.c...
Rob

2008 Jan 21 10:49 PM