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Barron’s Summary March 19, 2011

|Includes:Aveon Group L.P. (AVO), CCE, CL, CPB, CVE, CVX, DO, ED, EXC, GIS, LFGR, MRO, PEP, SVU, TAP, XOM

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· “Invest in Japan”: The week’s cover story – the article is very sympathetic towards the recent tragedies in Japan and says “Japan will demonstrate its resilience”. The article highlights how current stock prices value Japan’s companies at slightly below book value, and that the recent pullback could allow some of the world’s best companies to bounce back 10% during the next few months.

· Equities: Barron’s says that the better than average returns on equities in the next 5 or 10 years could outpace the returns in the past 5 or 10 years.

· SVU: Positive comments, saying that the stock looks cheap compares to its peers (SVU trades at a P/E of 6.6x vs. 11.1 for KR and 11.3 for SYY) and that SVU shares could reach $10.

· Consumer Staples: Barron’s highlights AVO, CL, CCE, OG, PEP, CPB, GIS, TAP, K, and CLX as stocks as stocks that have lagged the SP500 last year, while growing earnings at a faster pace that the SP500 in the past 10 years. The article says this group could outperform if “investment conditions worsen”

· VRA: Some cautious comments – saying that VRA has more debt and lower margins than some of its peers (e.g. TIF, COH).

· Energy stocks – Barron’s highlighted CVE, XOM, MRO, DO, CVX, MUR, BHI, HAL, and HES as recent recommendations from Goldman, saying that profits from the group are expected to grow 51% on average this year.

· Coppper – Barron’s is positive on the metal after its recent decline, saying it is attractive for both short and long term investors. Also, Japan’s rebuilding efforts will likely create a spike in demand for copper and other base metals.

· Utility companies – Barron’s is positive on nuclear related utility stocks after their recent declines, although the article acknowledges that regulations will be a greater risk than before. Barron’s was also positive on ED as a defensive stock, AEP for its valuation and coal exposure, and SO as the industry blue chip. In addition, EXC and ETR were both mentioned positively given their slide, with ETR rated the better pick. FE was mentioned positively as well.

· Tech: Barron’s “Tech Trader” gives a review of the potential impacts of the Japan crisis. Overall the article is cautious, saying that earnings expectations for companies impacted by Japan still have to come down and, “there may be disappointment as the real numbers come in”

· DMD: Some positive comments – saying the company should benefit as daily metro newspapers become continue to fade.

 

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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: AVO, CCE, CL, CPB, CVE, CVX, LFGR, DO, ED, EXC, GIS, MRO, PEP, SVU, TAP, XOM