Get Big

Client Talking Points

Bigger, Stronger

Let’s do the math again: Strong Dollar = Strong America = Stronger Global Consumption as commodities deflate post-inflation. The consumer spends more money when the prices come down at the supermarket and when gas prices aren’t an ARM and a LEG. Brent Crude Oil snapped out TRADE line of support at $117.61, meaning we have some room for downside in the commodities space while everyone else is busy getting dizzy over a couple handle move downward in the S&P yesterday. 

Asset Allocation

CASH 47% US EQUITIES 15%
INTL EQUITIES 20% COMMODITIES 0%
FIXED INCOME 0% INTL CURRENCIES 18%

Top Long Ideas

Company Ticker Sector Duration
ASCA

We believe ASCA will receive a higher bid from another gaming competitor. Our valuation puts ASCA’s worth closer to $40.

FDX

With FedEx Express margins at a 30+ year low and 4-7 percentage points behind competitors, the opportunity for effective cost reductions appears significant. FedEx Ground is using its structural advantages to take market share from UPS. FDX competes in a highly consolidated industry with rational pricing. Both the Ground and Express divisions could be separately worth more than FDX’s current market value, in our view.

HOLX

HOLX remains one of our favorite longer-term fundamental growth companies given growing penetration of its 3D Tomo platform and high leverage to the 2014 Insurance Expansion from the Affordable Care Act.

Three for the Road

TWEET OF THE DAY

“At LAX they estimate 15 percent of wheelchair requests are just people trying to jump the security line.on.wsj.com/ZibjSE” -@TimAeppel

QUOTE OF THE DAY

“If you don't know where you are going, you will probably end up somewhere else.” -Laurence J. Peter

STAT OF THE DAY

JAN CONSUMER PRICE INDEX M/M: 0.0% V 0.1%E; CPI EX FOOD & ENERGY M/M: 0.3% V 0.2%E; CPI NSA: V 230.300E