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We helps bring back Michael church Addison capital chief investment officer to find out where he thinks he should be putting your money to work and let's start with.
The fact that you had mentioned earlier and I wanted to drill down a bit JPMorgan because you like the financials as a recovering a recovering housing market play.
It was JP -- There we think they have the best risk reward ratio of going into next year.
I think earnings power is tremendous if you get a recovery in housing financials a whole will do well what -- -- to.
PE here is seven -- makes it cheap but you know what Mike do you think there's a reason that it is chief it's it's only -- moderate improvement in lending.
Trading business has been soft as I mentioned before.
There are reasons some have a PE that's cheap but return on capital hasn't been great -- true they have struggled -- but -- still trading at discount to book and we think that you're gonna start to see a little bit of recognition.
Of earnings power going between thirteen for for JPMorgan and most of the -- -- with a gain of 31% year over year -- still feel there's more upside again I would just -- -- -- -- out another year it doesn't look as good the next pick and I have to push you on this is a gold miner Barrick Gold them gold miners have been dead money for quite some time to have.
-- gutsy why Barack.
Well again Barrick is plugged in the most beaten the Volvo particularly at least of these the majors.
We think there's value there we also think that sooner or later.
You're -- if you see the miners are to follow suit with a metal all of -- why not -- the middle now and -- well.
Because I think it costs have been the issue here for most of the miners for the last two years now we think a lot of that is behind them.
And when you start to see.
Gold continue to go higher the miners need to play big time catch up -- confident to their management -- these things I mean that's that's what brings up.
My thoughts about this like -- -- -- get this book I agree with that America's new CEO.
So right looks at.
-- -- covenants if it does OPEC now natural gas.
You heard our trader from the nymex and I am buying natural gas here and he's been short for quite some time so there may be -- natural gas opportunity here what's the name you like in the space.
-- and I think it has the best balance sheet I do think need to be carefully of some of the gas companies to some don't some of their balance sheets aren't as good as others.
They may run into problems pick -- gas below four.
But nonetheless DeVon is.
One of the best balance sheets in the business for the good old days when natural gas is fourteen dollars per million British thermal units we have to go back two -- three years -- that you get the devil be trading at well over a hundred effect.
Us stock up yeah we'll see if that happens OK brace ourselves bikes and number one money maker.
EMC so this is several sort of mega trends all rolled up of one and we we really think that there in a lot of great -- -- one of which is storage.
Data storage we think it's in the secular growth phase.
You have -- growing exponentially.
They how they are also -- clout they own 80% of VMware mean just think about it.
My mailbox -- 2300.
Emails and I know I'm so bad and I always get those emails your mailbox is almost fall.
But EMC helps manage asked exponential growth in storage the -- you think of -- just a vast amounts of data that are just continuing to grow every day they could -- your phone all the pictures you have everything.
Think of corporations it's all just continuing to explode and that's what they do.
Does anybody to photo albums anymore just.
Not the ones that you do want apple now like real photo albums good to have -- like thank you Mike church of apathetic capital management good to see at the close.
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