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 can7%- 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
3M Company - Tough to continue to be that sweet a play
· APD – positive comments; despite the aborted ARG deal, the stock has further upside.
· 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 rumors 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. HFL
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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.