CLIENT TALKING POINTS
Disaster Averted
So much for the end of the world. After the Italian election fiasco which tanked the market, we saw it rally yesterday to close at levels that were nearly the same before Berlusconi and Co. took over. We're not fleeing to "risk off" assets because of a down day in the market and thus, we are not buying Treasuries. We are short the Japanese Yen and will continue to use our levels and tried and true methodology to pick stocks using signals to tell us when the time is right.
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 | 40% | US EQUITIES | 20% | |
INTL EQUITIES | 20% | COMMODITIES | 0% | |
FIXED INCOME | 0% | INTL CURRENCIES | 20% |
THREE FOR THE ROAD
TWEET OF THE DAY
"The difference between the $EATFY10 turnaround and the $DRIFY13 - $EAT rethought the buz model while $DRI is defending what has not worked" -@HedgeyeHWP
QUOTE OF THE DAY
"Who is rich? He that is content. Who is that? Nobody." -Benjamin Franklin
STAT OF THE DAY
The Commerce Department reported that total orders for goods meant to last more than three years slid 5.2%