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Congress Asset Management Company Senior Portfolio Manager Peter Andersen on how investors can boost their portfolios in the year ahead.
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That's of course you know senators talking about it we're in the heart of earnings seasons right now at a certain -- then right now it's really seasons that this is the one -- -- -- big names like Google.
IBM they're reporting after the bell today but what should you look for in terms of results before.
You invest in these -- joining me in a Fox Business exclusive from Boston is Peter Anderson congress asset senior.
Portfolio.
Management -- go back to December when you were on the show when you -- concerned about the dividend taxes spiking that that was gonna affect earnings or cut.
Frankly a little negative on this dividend payers have you changed your mind in the first part of 2000.
Well I have -- -- little bit of that is because when they have I change the tax rate for dividends they haven't gone to the apocalyptic level if you wanna call that and so it's a much more reasonable tax rate.
So I still think.
That companies will be raising their dividends this year.
It's a great thing to get an additional income even though you -- paying a little bit more -- tax rate I still think is very attractive for investors out there.
You know Peterson you're talking about those dividend payers are saying to look at the dividend news that comes out as we go -- each earnings report.
As they go through if -- you today in particular but also.
A you're talking about other things that we need to watch in particular I think it's looking for share buybacks you think we're gonna get some share buybacks is earning season.
I absolutely do -- let me just outline the thesis behind that first off I'm expecting this year.
For earnings results to be tempered in the sense that they're not going to blow the doors off the way they have been in the past and so if you're CFO -- company.
And you know your earnings are not going to be spectacular this year but you do want to boost your stock price.
You have a couple of tools in the tool kit so to speak one of them is a stock buyback very simple to transact in implement.
And -- you guys have evidence that it can boost the EPS.
Of a company just by buying back those shares and taking them out of circulation so I think it's up.
It is not the top idea but it's a good way to kind of bolster your stock price if you can't get the top spot level earnings results.
I think you know we're we're looking on the screen as you're speaking you're looking at some of the things that you are there watching -- -- to -- of -- earning season and and spinning off the division looking in a new technologies but I -- -- -- -- Companies that have cash on hand they've been sitting on cash money's cheap enough for at least three years now what two trillion dollar sitting -- company bucks.
You think this is -- they finally put it to work we're gonna see him and that.
I think they can't hold their breath any longer you know -- will have to do something and that is it will be as a result of shareholder pressure.
Nobody likes to see cash just laying dormant on the books of -- company.
Especially when we all have -- opinions strong opinions about what should be done.
As shareholders.
With that cash so I think this year will be the year.
Combined with the tempered earnings that will increase the pressure on CFOs and -- officials should do something with that cash -- Capex that would like to go through them and just -- give our viewers a sense and feel like news corporation of course the parent company of the Fox Business Network like technologies.
Anadarko petroleum and -- that you've got going on here.
Yes I do -- is because of all the things we mentioned you know I'm looking for what we -- call idiosyncratic risk.
Not just companies that trade with a beta with the market so for instance life technologies is -- DNA sequence there.
But recently just announced that it hired investment advisor.
To help it decide whether or not -- should sell itself to another company.
-- back stock etc.
I love stories like that where there's a little bit about off the beaten path kind of thesis behind the stock saying goes with -- -- That's spot announce an additional stock buybacks and -- -- spinning off its news division so things like that are really.
Interesting in that they don't just follow the main flaw in the market so to speak and that's what here god investors should be looking at.
Are things are not standard right now because -- -- you're gonna make the -- and lastly Anadarko.
-- its undervalued when you look at -- is an EMP company when you look at its assets.
Is trading at a discount.
To its net assets and there is lawsuit going on out there -- with the Anadarko that should be resolved this quarter.
-- technical to go into.
And is one of the reasons why it's undervalued right now.
Nice Texas based company if you well.
Alright Peter Anderson that congress asset management senior portfolio manager great stuff great picks obviously -- -- and thank you.
