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Client Talking Points

Dollar Holler

Yesterday's rally probably got some bears really riled up. After all, we did have a big down day during the Italian elections. That sort of thing was a one-time event though and you have to look at the bigger picture. A stronger US dollar is going to help boost stocks and the economy. How? Stronger dollar = Strong America. Commodity prices come down like oil and gas and food and then people consume more. Growth in consumption helps drive the bottom line at various companies. Get the dollar right and you can get a lot of other things right, too.

Asset Allocation

CASH 38% US EQUITIES 24%
INTL EQUITIES 18% COMMODITIES 0%
FIXED INCOME 0% INTL CURRENCIES 20%

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

"U.S. Q4 GDP growth revised up to +0.1% from -0.1%" Yay." -@moorehn

QUOTE OF THE DAY

"Committee--a group of men who individually can do nothing but as a group decide that nothing can be done." -Fred Allen

STAT OF THE DAY

Initials claims for regular state unemployment-insurance benefits dropped 22,000 to 344,000 in the week ended Feb. 23.