Barron’s cover highlights BMW, saying that according to some bulls, the shares could rally 20% or more if 2H07 margins expand. At its recent price of €43.57, it was trading at over 10x the ‘07 consensus EPS ests of €4.08, a big discount to its peer group, which trades at 14.1x. Take out BMW's €6.5bn, or €10 a share, in cash and the P/E multiple is even lower, notes Daniel Kerbach, of LGT Capital Mgmt. And while BMW has been investing heavily, it now has many more improved models available as a result. "It will take a few quarters, but that will pay off," Kerbach adds.
Fund manager likes BWA, TEN and JCI.
Pittsburgh Plate Glass (PPG) stock looks like a good bet. The company is getting out of slow-growth markets like U.S. auto glass and reinvesting in more promising ones like Transitions eyeglass lenses.
Through brokerage stocks are up 10%-25% since the lows of this summer, they're apt to level off or drop in the months ahead as investors come to accept the new environment. BSC, LEH, MS, GS.
If the deal dies, the shares of PHH (PHH) could fall to 22, about $6 less than book for a good business. An investor says it's worth at least the $31.50 buyout price -- and possibly $60 in two years.
“The Trader” column highlights Aegean Marine Petroleum (ANW), saying that the co’ stock offers an alternative vehicle to ride the shipping boom. With shipyards bursting with orders, Aegean should see increased demand for its services in the years to come. The task of schlepping fuel to ships, undertaken by oil co’s decades ago, increasingly is falling to independent suppliers, and Aegean should continue to snag mkt share from its smaller, regional peers. A strong balance sheet with no net debt also gives Aegean financial flexibility and the option to buy smaller, undercapitalized co’s. Aegean is expected to double the number of its service hubs and nearly triple its fleet by 2010, and Jefferies Douglas Mavrinac expects sales volume to rise 4-fold by 2010. He expects EPS, at about 68c in ‘07, to reach $1.72 in ‘08, $3.22 in ‘09 and $4.50 in ‘10. Another catalyst: The world's supply of bunkering tankers that can deliver heavy-grade marine fuel will fall off sharply after ‘08, as single-hull oil tankers are phased out in accordance with an intl rule aimed at reducing pollution in an accident. But Aegean's 16-strong fleet consists of 14 double-hull bunkering tankers. And it has orders for 28 new vessels. Mavrinac’s tgt stands at 42.
According to the “Technology Trader”, Bernstein analyst Craig Moffett recommends investor to buy shares of Comcast (CMCSA). It sucks," he said. Comcast shares have, dramatically underperforming the broad mkt, other media stocks, and more or less everything else.
