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JMP Securities President Mark Lehmann on the stocks to help investors boost their portfolios.
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Off the record highs earlier today we were up more than 67 points but right now still at a record for the Dow Jones industrials as we approach the close just about ten minutes away.
Who's really jumping around getting too excited about it now once it's happened that spark plug Islam which stocks though can you still -- With guaranteed upside -- is there -- guaranteed I don't know mark Lehman is -- -- securities president's fight it now from -- With his must own stocks -- guaranteed obviously right.
Obviously an analyst got and it's quite the intro but again we felt very constructive came.
Nothing's guaranteed out there as we both know OK but you do have some.
There's a pretty good shot type -- stock's correct how do you pick them.
We we obviously look at a variety of factors and in a research department but.
We look for excellent management team that's obvious we look for big opportunities big markets that are open.
For the for potential consolidation and industries and then we look for a little bit of a different tone.
So you're gonna hear revaluation is some things that -- data that acts multiple potentially could be at bag at a much higher multiple.
And those are couple themes that we look at -- -- whatever and an expanding markets industry consolidation right I mean those are big issues as well.
Absolutely and you you know with a few of those -- that we talked about software as a service united talked about that before.
There's the changes -- the financial services companies which are opening up opportunities to some of the non bank financial we've taken to it's a theme for our research department.
And again those are expanding markets and there's markers that -- to -- Dominated by much larger players.
Which are constricted because those banks just can't play there anymore -- so let's talk about -- -- point two just assume that you feel the 2013 is gonna give what double digit percentage returns.
I think it's gonna be -- good year I do think we've seen for the first time some stuff cash flows and equity mutual funds and ETFs that we really haven't seen for a time.
I think this continue theme that we've talked about how the market getting slightly better in employment getting slightly better.
And the US economy being better than the rest of the world whether -- Europe or Asia.
That's theme I think still plays out and even the -- only two months into the year two and a half months of the year we've seen a big rise are ready.
I do think the markets going up double -- -- again.
I love it one year leading up to the rally it always have heard were this this court was this chorus of people telling us -- reasons as to why.
The market wouldn't do well and now.
They're still -- activity.
-- right I mean he's still hear people saying.
There are potential risks what are the potential risks that at least do you see better that you believe are truly real.
-- and.
There are some real -- let's not be you know Pollyanna and think that the markets just with rose colored glasses -- it's not there's a few that obviously are well known.
We know there's a net debt debt overhang we you know we there's sequester that continues to be overhanging we hear about Spain and Italy every once in awhile.
We hear about China slowing down every once in awhile.
We got news out of Venezuela yesterday with a big leader for Bob passing away there's only disruptions in the middle he -- there's always something.
OK I don't -- which we don't predict yeah yeah forget you -- pilot every single day at the news and I see this debt clock rolling up and down -- certain networks I see certain things that are going on like -- -- -- in the investor.
And yet every day we make new highs here and I think that's.
Very interest.
OK so let's get to your picks right now -- your first one is awfully interesting to me because it is had a huge run up -- 82% and it is our rate of real estate investment trust called Redwood Trust.
With a pretty healthy dividend here five point 4% but what makes you think it can even -- on anything to an 82% gain.
So it has had a big move in the last six to twelve months and it is.
At its 52 week high.
It's it's the best play in that commercial -- -- are in the residential mortgage -- That used to be dominated by big banks but they are big player and that's space.
It is a mortgage -- takes the focus on the high -- they're very well known in California they did the first securitization out of the tough markets in the late.
2000.
-- 82009 timeframe.
Highest quality management team has fresh capital to grow and is really as well run as a mortgage -- as we cover.
You like HFF.
Ticker symbol HF but I want to skip forward to Salesforce.com.
CRM which stands for customer.
Customer service you know you talk about all of this and you say -- this is business intelligence in the cloud and get this stock -- up 29%.
Over the past year for Salesforce.com.
In customer relations management is is something that has a big short break their 11% of the float a short it.
It doesn't part of it is blood has blamed -- -- quick rise part of it is plain and its multiple but this is the best play on the theme of cloud server software as a service and cloud.
That we cover and Salesforce.com has always had a large short interest -- -- office is -- -- -- real preacher for that.
-- real preacher for kind of the new software model.
They're the -- that it.
The umbrella of the market cap that some of the incumbents have like Oracle and others as you can tell you how big this company can be.
They are the best that what they do it is always going to be an expensive stock.
It was expensive at a hundred it was expensive at a at a 150.
And I'm afraid it's for -- expensive for awhile because it is that good of the company while some.
Big big thumbs up for that one -- as a whole bunch of picks that we are gonna put up on our FaceBook page FaceBook dot com slash live claimant good to see you thank you so much.
-- thank you I appreciate any time.
