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JMP Securities President Mark Lehmann on the outlook for the markets and the impact on the markets of Europe’s economy.
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As they -- Larry we're gonna bring in mark -- -- -- is president JMP securities talk about this market.
Which market you call -- Vanilla market does have lacking in conviction but a lot of conviction today is this just a flash in the pan or will it less.
I think it's similar come to it was just describe we have a market has relatively cheap.
-- fundamentals are fine.
And you -- very little conviction buy -- are tepid so the investors are not making any strong calls either way.
But again valuations are very very reasonable dividend multiples are very very reasonable.
And yet investors still wanna pour money in attend ten year treasuries -- -- Percent that's not gonna last forever okay but but it's what they're doing so let's try to advise our viewers.
But that's really not perhaps the best way to go in which areas should they be going -- -- right now I mean you're looking market an atmosphere where.
Some things look pretty darned cheap right now.
Well we'll get a couple companies -- -- One of the very large capital ones somewhat of a small cap but look at Intel for example.
You got a company trading at ten times earnings -- product cycle coming up you got a 3% dividend yield.
It's cheaper than the market's growing faster than the market and yet investors are really not that.
Aggressive on that stock right now there's a stock that began with a 3% dividend yield.
And product -- coming -- he -- real pretty comfortable.
That if the market rebounds has been taking market share and obviously the stocks and I mean there are two opportunities are -- getting into the Smartphone business they're pushing ahead with the ultra books were waiting to see how strongly that takes hold what's -- second -- Our second pick is a -- about -- sharp rich to smaller company to financial services company mortgage -- It -- yields almost 15%.
It it's a very good play right now with yields the way they are markets obviously are are keeping their ten year very very cheap.
The risks there is -- a rapidly rising interest rate environment which I do not foresee but it's been very consistent player.
If rates stay the way they are even get back to the 2% level this stock will do just fine you get your double digit yield and the company's extremely well managed market.
Let's talk a little bit about what is happening over in Europe so so much of what happened yesterday was.
Investors thinking that they're just putting a band aid on on a -- kind of cancer that is eating at the heart of of Europe.
-- Has all of that been worked into this market now because again you did see a pop a very nice pop today even though yields in Spain another bad indices were way up.
Yeah I don't think everything is priced into the market today I think you gonna have.
This is this raging.
Fear kind of -- increasing get to Spain and worry about Portugal moved to Italy I don't think that's behind us.
I think that the issue here is you keep reading about things.
Over over the weekend bailouts and over the weekend compromises they don't feel like they're totally gonna solve the problem.
And obviously market that people -- in the market to not like question marks.
We did a great thing here when we had our problems -- their bank for years ago and re raise equity capital for -- banks -- -- putting band aids and in the debt that they're trying to raise in the loans they're trying to give them.
I think obviously.
And -- people overseas are looking very very closely and giving some answers.
But this did the lack of a finality I think it's -- spooks investors these days.
Everybody serious about finding a solution I think we are gonna find a solution but I don't think that the all the bad news is behind us now.
But cracked all right but you're still buying in their mark thank you so much for joining us mark Lehman -- securities and Larry we're gonna see.
