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Now if you had listened to my next guest who's been with us the whole -- the last time he joined us and you want captain of the closing bell.
He would have made use -- its money at Denver -- -- palisades capital management chief investment officer joining again.
With some stock -- some -- some do but let's start with your number one and that -- Raymond James.
But the caveat that he used to work there and I'm still -- happy shareholder.
I think what the move that they're making in buying -- Morgan Keegan.
Is going to be outstanding for the company this is an incredibly well managed company this is how you run a brokerage firm.
These guys have built to tangible net worth in this business for many decades never have lost capital don't speculate with the company's balance sheet.
They are brokers and proud to be it and you never buy at the highest of the year deal are you try not to certainly can't -- -- I haven't always done that but they you know but.
We we always try to.
Pick an inflection point the key thing about small cap is to be patient.
It's important -- -- know that there's a possible credit downgrade right because.
Some of the ratings agencies felt oh you're buying Morgan Keegan this may destabilize and -- -- -- you care.
Now because the company has very conservative balance sheet they will sell equity as part of this deal with sometime in the future.
This is gonna give -- more than 7000.
Salespeople one of the biggest -- people don't appreciate the size and scale of what they have to do you really are stationed here -- XP it is down about 21% for the year by the way folks who built this company makes something that is in nearly every product that you touch and that's polymers and adhesives -- It's actually up for the year but it's way off of its -- -- but not for the -- way off the highs which is down about 21%.
-- you're buying.
Craig -- performance polymers and a single digit price earnings multiple this was near fifty dollar stock the middle part of last year.
There wasn't selling shareholders.
Some issues some supply issues that we think have are well behind them.
Really well positioned company -- products -- seen a lot of different end markets including products made by Apple Computer by the way.
And it's it so well it's -- put apple with any name America.
They're going to be something the people want to buy because of that supply chain certainly is growing and growing although I've heard from a lot of people consumer electronic show watch out what apples margins get squeezed.
By Samsung you know Samsung is really coming out that galaxy -- -- huge -- -- watch out there but but about this you know does this give you sick -- Khaled protection in your portfolio.
Look I mean the US economy was the first economy to go into recession and we're likely leading the world out of recession.
And I think you want to have exposure to the US and the best way to do that is through small cap companies like the companies we've just been.
Right their their swings are also water so you could lose more you can make more certainly let's talk about your third pick.
And that is sea drill you like this one the past several times that you've come here.
Deep water driller very high dividend yield close to 9% -- really well positioned for future growth.
And as the gulf recovers and other areas of the deep water.
They just incredibly well positioned for further as you say this name should be a component to every once portfolio.
You know why because it's a great total return vehicle I think we have modest top line opportunity here.
A five to 7%.
You combine that with an 8% dividend yield.
-- talking about mid teens -- returns nothing wrong with that -- -- last -- -- for our viewers October 5 up 55%.
Was a great opportunity because the shares had been beaten down.
Real concerns over energy prices and what was gonna happen in deep water -- your number want moneymaker is somewhat beaten down but you love this company.
And with that said in the category of not only you know I we we didn't buy this at the high but I did -- -- near the high as continuing to go higher -- Manitowoc but then -- we recommended it when he was in the high single digits.
-- watts a Crane manufacture -- make other industrial products incredibly well positioned for global growth led by the US.
Conservatively managed down that they do have some leverage on the balance sheet but the company.
I -- really well position and they've really run run the company is at Barclays is calling for about seventy dollar price target there.
And I think that's actually a very conservative -- -- market you always wanna buy cyclicals when the price earnings multiple.
Big cranes Dan and I I I know that they had a real China business are you looking to see a hard landing in China is that economy slows down.
First of all -- nearly doubled the size of the business through an acquisition of the notice.
A leader in food service equipment so that company is much more diversified than they've ever been before.
That's why I think the company will earn a higher price -- culpable the peak of the cycle.
Cyprus triple B Bulgaria triple -- we're still looking and waiting on this European name and what's going to happen with the eurozone nations and the S&P downgrade but in the meantime our thanks to Dan Peru.
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