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So the markets as you know or down today after Spain made it official.
It's stopped pretending Spanish McCain didn't need -- bail out and said you know what we actually do need about a 125 billion right now.
Does this mean that the entire investment planet remains totally hopeless.
Or can you make my we know the answer to that you could always make money Scott Black is the president of Delphi management he's making money so is mark cardiac he's the vice president of premier financial advisors welcome to you both.
-- -- -- -- -- Well we try not the time the market with -- all warrant buffet we don't.
We can't time that we try to buy good businesses -- there -- a lot of good business is now with very high returns on equity -- the lowest -- -- so bad years doesn't mean they're gonna go up next week for the week after -- if you -- a three to five year time horizon he's a terrific entry points.
In two in particular a power house tech stocks Qualcomm.
Which is gone down here it's selling at roughly ten times earnings -- of the cash it's a legitimate thirteen to 14% -- and when we just stop applying -- here.
In Hopkinton mass which is BMC you get VMware which is a 22% Raila.
Which is around 80%.
-- a company overall what brought about 11% top line at selling roughly twelve times the coming year's earnings to these -- house franchises had very low multiples they renew the below market multiple market multiple -- -- -- Iraq twelve point seven times expected earnings while you know mark when you look at for example Qualcomm which of course is one of his picks and I know you -- more sectors but.
That PE first time -- a long time we've seen it at nine is this market affordable to the point where you can afford not to -- -- There I couldn't agree more this market is highly affordable right now and and I'm advising my clients to focus on tactical opportunities and as well as -- -- sectors so.
I'd like them to be looking at health care.
At this point.
Consumer Staples Telecom utilities and don't forget fixed income for the stability and the reliability.
And particularly the -- -- -- municipal bond asset class it's a risk on risk off market it's a headline brisk.
Market today it was risk off.
It's the I'm referring it to it as a roll roll market but I'm also telling my clients high net worth and ultra high net worth clients individuals have -- state employees stay very focused don't panic everything's going to be okay.
We're climbing a wall a wall of worry but I think it it all depends on what day it is but we can make money and I'm highly confident about.
You know Scott we had a guest in here last week who said that every time -- headline comes out of Europe in the market falls he calls -- one of -- traders calls at -- tape.
Bob meaning it hits the tape.
And the market just bombs.
So you know part of this issue it is solving the European crisis they're gonna have a meeting on Thursday I don't know if you believe anything's gonna happen but -- said there's one opportunity here to turn the European doldrums -- brown.
What is it.
Here -- satellite they usually have the ECB get together and obviously gonna need the consent of Germany and angle -- medical and backstop but by issuing sort of quasi.
Nicholas Brady bonds what we did.
Back when Brady was secretary of the treasury for Brazil and Argentina -- restructure the debt you back at with the ECB.
You have lower interest rates you might have to take a haircut on some of the principle I think this is the only way out.
Thank you can't have totally austerity types of measures because if you have a deficit.
The GD PF five or 6% -- -- negative even cut 3% did you really sink the economy's so I have to be a balance of austerity.
Refinance -- some pro growth objectives but really all hinges on what the Germans think.
You know it sure does market me -- -- nodding this idea of the austerity it's not working you saw what happened in Greece.
Are you see the massive push back doesn't mean that eventually they won't have to come to realistic terms hear about that spending less than what they're actually taking -- but.
This is you cannot deny it affecting our markets so what do you tell your clients tune it out every time your stocks you -- -- -- hit.
I -- I always tell them the tune it out to be honest with you because.
Every day it's a different headline risk it's a different story.
So I just -- the stay focused listen carefully.
Don't be fearful don't panic sell and in fact let's to be able to mitigate the -- let's -- On the dips when we need to with that tactical portion of our portfolio while you're saying some defenses were consumer Staples Telecom health care what Q1 growth sector.
My one growth sector continues to be technology.
Now again it's a high -- sector meaning that there's a lot of risk but the reward is also commensurate with the risk and it clearly it all depends on each individual investor every client has a risk.
A different risk reward.
Objective as well as profile.
Focus I wanted to get Scott's last -- -- here Triangle Capital so what is it about this company because you are a master stock picker you part of the Barron's roundtable.
-- always listen closely when you when you make certain -- Scott what is it about triangle.
Well what's nice it's a business development cooperates on the leveraged here because they've raised money that net that equities point three for that price to book is about 135.
And the earnings of growing nicely with the loan portfolio -- -- gonna get paid while you way.
We bought the stock on the twenty but it's got a two dollar dividends are you still get a nod and a half percent coming BL.
They've increased -- loan portfolio of 20% -- mezzanine financing but they've been very strict and even in the downturn and I'll wait and don't nine they had buried.
-- very good results didn't have much in the way of loan loss reserves at the they had to take a state and screw up too badly.
So if you wanna get paid while you wait you want -- growth vanity I think.
-- up TC -- probably good stock but the nine and a half percent yelled.
That we we like deal that's a good one -- gentlemen thank you so much we appreciate it think it's a solid investment advice and you know when you listen -- mark he's talking about talking to -- high network clients saying.
They -- state points state com mark cardiac.
And Scott Black thank you so much you.
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