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Other o'clock continuing to wind down on President Obama and congress to make a deal to -- are going over the fiscal -- But many investors are getting into survival -- -- doing that right now of course the clients are making him do it -- president's top picks.
For surviving the worst of it happens -- -- advisors capital management analysts is Steve.
Three names that you like -- -- get right at this because you lows you shifted more to lows and moved away from Home Depot right.
-- switch for right Sheryl so we switch based on relative valuation there and we think that this is a story.
Bakken play out longer term.
As the housing market recovers you -- great numbers coming out on Monday.
Think we're near 900000.
Units on an annual rate and starts.
I'm not mistaken.
People are starting to spend money back into the home and we think is even we plod along there's some still some opportunity for -- like.
The also it's also -- valuation issue shares of lows not valuation is jumpstart but the fact that they they -- a huge stock repurchase sure billion.
Billion of the -- there billion and share repurchases and dividends.
In the past quarter alone.
So this is a company that's using its cash wisely they're not opening as much sources they use to.
And they're really gonna let the cycle play out as consumers.
Again spend some more money -- home.
Right still closes it your thesis is rewarding shareholders Marceau The Home -- and and that's it doesn't seem like.
A let's talk about your next one because an all treaties -- should say our you're getting you're getting long term.
Exactly defensive -- American Axle.
Parts supplier GM Ford to their picture clients obviously.
Sure GM's obviously much larger -- struggled a little bit in 2009 and through the GM bankruptcy.
The management's now focusing.
On growing the business overseas and taking their exposure to GM's and market.
Down a little bit and again growing their global footprint -- they see great growth opportunities brought.
Volatility on this chart that the stock is up 32% over the last year but the last six months is actually dipped about seven -- percent what is.
Where's the sensitivity -- -- it's it's very sensitive -- so this is something again were long term investors were not trying to play the fiscal cliff in the short term.
We're thinking maybe this is a buying opportunity at -- Philly pops up.
You can make an entry back into the into the stock.
-- at a lower level possibly and we think it goes a lot higher longer term Scott.
Again -- it's a again a cyclical business they have a lot of exposure to GM which they're gonna reduce that he should expand.
As there exposure to GM.
Reduces and they find a lot more customers abroad.
Okay okay and also.
Another -- -- the realize the I actions into this is several times IGT -- -- -- is EL IC she's been -- possibly a few times actually now.
You like this one.
Is it it is -- the global vs so either domestic business like.
I like both actually but the domestic business they've done very well the recent quarter they installed a lot of new -- -- people are familiar.
There you know get a piece every time you're in playing slots IGT gets a cut.
-- -- International business also going abroad and one thing we really like about the space is -- one of three dominant players between Bally.
And W mass and really they they can.
Again delivered cash back to shareholders they've done over 545 million.
Dollars and share repurchases and dividends actually just increase their dividend on on you know this past week I believe seven cents a share so.
This is something where again you're being rewarded as a shareholder to own.
The companies using cash wisely and we think that over the long term you can see a nice.
He -- the thing about IGT though is that the stock is actually down about 23% at your today is -- -- the I don't know where that pressure came from is that it is from.
Slowdown in China -- -- accounts of the mark at clerk I'm not really sure what -- issue was there but does that make you could you know little bit nervous it and it makes me.
You know slightly nervous I'm not amount of -- -- but I think that this is again a company that's well managed delivers cash back to shareholders.
And it is really a good too long term play on the consumer again plotting along and hopefully getting back.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Absolutely could hurt someone like -- GT -- and we'd be looking again a little longer term.
For the cycle play out past the fiscal cliff -- you know the fiscal cliff is a huge issue but we think the -- probably gonna horizon 2013.
No matter what happens -- Even though a deal looks like it's on the horizon you can never tell with what's going on in Washington -- No I do it every day but still it's still can't tell -- is -- zarrella thank you very much it's becoming I don't like Friday from broken -- -- -- -- had a crystal -- -- Washington.
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