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Jeremy Frommer, CEO of Hedge Fund LIVE Jeremy Frommer has 20 years of industry experience and is currently responsible for general management and leadership of the General Partner. Previously, Mr. Frommer was a Managing Director and Head of the Global Prime Services Group (“GPS”) at RBC Capital... More
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  • Barron’s Summary 3-5-11  0 comments
    Mar 7, 2011 9:51 AM | about stocks: ACOM, APH, BRK, GOOG, JOE, MET, GOOG, NUE, NVDA, PETM, PNC, PX, BBRY, TGT


    · Santoli – positive – the upside risks in the market may be underappreciated.

    · TGT – positive comments; sentiment neg and valuation cheap; could move >$60.  We definitely think so.

    · PNC – pos. comments; stock could have 25% upside; valuation cheap and fundamentals improving.

    · MET – pos. comments; the stock offering creates a buying oppy; has one of the most attractive return profiles in the industry, valuation is cheap, and the co has a lot of excess capital.

    · Goldman’s Tollkeeper fund is profiled – pos. on APH, AAPL, GOOG, GOOG.

    · Business intelligence software used to analyze management tone during conf calls.  Cautious comments on BBY, CSCO, NWS.

    · Interview w/Muddy Waters Research founder Carson Block.  Neg. on Chinese reverse merger companies (inc. CCME).

    · AAPL – the iPad 2 is nice and will sell a lot of devices, but it is still very early days in the tablet market.  Going forward, price will become much more important.  We think the Ipad2 will be an incredible seller as it is very competitively priced.

    · MMI – somewhat pos. comments; sentiment towards the stock has become v negative; but it has $11/shr in cash and some innovative products.  This stock is WAY oversold and should rally soon.

    · QCOM, NVDA could both benefit from the rising use of tablets.

    · RIMM – pos. review of the PlayBook in Barron’s – says this is one tablet that may actually give the iPad a run for its money.  We think the Playbook will be dead in  the water.

    · Jobs report provides evidence that the recovery is gaining steam; Feb could wind up being the breakout month for employment growth.

    · Berkshire (BRK) – pos. comments; the stock could hit fresh highs as book value builds further.  Cash could hit $55B by years-end if Buffett doesn’t make any other deals.

    · PETM – pos. comments; the stock could have more upside ahead.

    · Airlines – Barron’s was positive on the space, saying that recent M&A activity and capacity cuts resemble the rail industry 10-12 years ago, which was around the time when investors warmed up to their shares. Some analysts say a drop in crude over a medium-term timeframe gives upside of 40% or more to names like AMR and DAL. AMR was highlighted as the most unpopular airline in the space due to its high leverage (which is a pos in boom times) and the fact that it never filed for bankruptcy, which means it never saw major labor cost cuts like its competitors.

    · MLPs – Barron’s was positive on MLPs saying that their steady dividend distributions and tax efficiency make them an attractive investment. The article also says that MLPs are fairly valued and likes the fact that they are based on volume rather than volatile commodity prices. Stocks highlighted were PAA, MMP, EPB (EPB also received a pos mention for its natgas pipelines), EPD, and NRP (a coal land leasing company).

    · JOE – Barron’s was negative on the stock, saying that a lot of its land properties are overvalued and in depressed regions. A few analysts also say that despite the removal of the company’s poison pill it is unlikely to be bought. Barron’s does note that on the positive side, the company has a solid balance sheet and its high short interest could allow for a squeeze if anything positive emerged.

    · NUE – Pos mention in Barron’s for its efficiency as a steel producer.

    · PX – Pos mention in Barron’s on its growth strategies in China, Brazil, and the Middle East.

    · EEP – Pos mention in Barron’s as the company’s pipeline business plays a large part in US oil imports.

    · Some unloved large cap stocks that could benefit – PCLN, MHS, BIDU.



    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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