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Barron’s Summary 1/23/11

|Includes:Apple Inc. (AAPL), ARMH, ASML, BRK, CAT

 

  • BRK – pos. Barron’s cover story on Berkshire – the co has never been in better financial shape and could have close to $50B in cash by year-end; the firm may even start paying a dividend if it is unable to find another “elephant”-sized acquisition like BNI.  The stock is reasonably priced and could hit new all time highs of >$150K/shr within the next 12 months.  Fundamentals are strong and the BNI deal looks like it was one of Buffett’s best.
  • NVDA – pos comments – the stock could double from current levels due to strong demand for its core graphics chips and its new Tegra processor; INTC’s new Sandy Bridge combination CPU/GPU won’t mean much competition for NVDA’s discrete chips
  • Buybacks – don’t actually provide much benefit to investors beyond a brief pop in the stock
  • CRM – neg. comments based on the co’s valuation.  Competition also is rising.  Fred Hickey is neg. on the stock.
  • Credit Suisse in March will launch what it calls the Light Pool, a trading venue for mutual funds and institutional investors that purposely puts high-frequency traders at a disadvantage
  • Volatility could spike – Barron’s says risk premiums are currently too low given the “cross-currents roiling the surface of the stock market”
  • AAPL, GOOG – both stocks seem tired lately, but investors should stick with them as each has excellent fundamentals and strong balance sheets
  • ASML – pos. comments; will benefit from current tablet war
  • ARMH – neg. comments on the stock; largely focused on valuation
  • Munis – “savvy” cross-over buyers have stepped in, finding risk/reward compelling at current levels
  • Barron’s round table – Zulauf – pos on VIX futures, Uranium Participation; neg on Italian gov’t bonds and European banks.
  • Barron’s round table – MacAllaster – pos. on MFC, HIG (recommends buying the HIG TARP warrants), WFC, MET, DAL, and AWH.
  • Barron’s round table – Gross – pos. on PTY; also likes NLY.
  • Barron’s round table – Hickey – pos. on PHYS, AUY, NEM, EBAY, and MSFT; says sold out of Apple long after Jobs news; also likes Canadian gov’t bonds.  Says tough to short so long as Fed liquidity rush remains in full swing.
  • APTG – Barron’s was positive on the stock, citing sum of the parts based on its proven reserves.
  • ITT – Barron’s was positive on the stock, saying there is still more upside in shares following the announcement of spin-offs.
  • CAT – Barron’s was positive on the stock, saying emerging market sales and the depreciation tax credit should drive demand in 2011.
  • PCS: Mentioned positively, saying the stock could appreciate 20% during the next year. The article mentioned that weather in late December was likely a factor in the company’s Q4 subscriber numbers.
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Stocks: AAPL, ARMH, ASML, BRK, CAT