Barron’s cover discusses a new battle of the Atlantic, which is about to begin by the giant airlines flying the lucrative trans-Atlantic routes between Europe and the US. It all will center on London's Heathrow Airport, which, under the terms of a new international aviation pact signed by the US and the EU, will now finally be open to all comers. Air travelers certainly will win, with trans-Atlantic fares falling by 10% or more. And depending on exactly how it plays out, the deregulation could help the stocks of US carriers like Continental (CAL), Delta (DAL) and US Airways (LCC), previously barred from Heathrow. At the same time, British Airways (BAIRY), believed to get as much as 60% of its operating profit from trans-Atlantic flights, is sure to face serious challenges. Ditto American Airlines (AMR), which has a bigger presence at Heathrow than any other US carrier. As the skirmishing spreads, it could well touch off a fresh round of aviation mergers in Europe. And the emergence of fewer but bigger players in Europe could, in turn, accelerate consolidation among major US carriers.
Fund exec likes CSCO, BUCY, KO, BGC, EMC and NVDA. Top holdings at another fund include GILD, ALXN, CVS, DNA, WLP, ELN, CEPH, MRK, CAH and ONXX.
Barron’s highlights ParkerVision (PRKR), which has lost $160m over 17ys without delivering a successful product. “Once in a while, you stumble across a co with technical claims so outrageously false or stupid," says Mike Farmwald, a well-known Silicon Valley inventor, entrepreneur and venture investor who founded Rambus, Matrix Semic and other co’s, "that you feel you have to do something about it." What he's done is short the stock, convinced that ParkerVision is worthless. His conviction appears well-founded. He's had the world's leading experts on radio power amps examine ParkerVision's patents. He's talked to the decision makers at co’s where ParkerVision has pitched its technology. No one has seen credible evidence that it works. "For these guys," reports Farmwald, "ParkerVision is just a bad joke that won't go away."
The co’s that "get it" offer the right combination of merchandise, value and shopping "experience." Those that don't generally have failed to keep pace with changing demographics and consumer needs. Those who “gets it” include COH, JCG, JWN, KSS and TRLG; those who “lost it” include: CHS, GPS, LTD and TLB.
Western Union (WU) shares are cheap, given the company's efficient global money-transfer business and growth opportunities. The stock could gain 20% or more.
“The Trader” column out saying that multibillion-dollar investments in Citigroup (C) from Abu Dhabi, and in E*Trade (ETFC) from a hedge fund, made a case that some financial stocks, at some prices, are becoming worthy of attention.
