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.
TOP LONG IDEAS
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.
Asset Allocation
| CASH | 47% | US EQUITIES | 15% | |
| INTL EQUITIES | 20% | COMMODITIES | 0% | |
| FIXED INCOME | 0% | INTL CURRENCIES | 18% |
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
