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This morning but again coming back a little bit -- off of session lows right now with such a -- for the Dow 14413.
Point 39 now.
We did get a big intra day high yesterday for the Dow the S&P almost almost hitting a new all time high yesterday one point away.
Ted Parrish -- -- financial director of investment.
With me and Charlie Smith fort Pitt capital chief investment officer at -- to start with you because you say BS and Teddy Kennedy had a different take on all this but Charlie first CY is so bearish right now on these now.
105 dollars in earnings -- what we expect for -- thirteen earnings on the S&P if you put a fifteen multiple on that mean you're right about where we are now.
I think revenue growth this we're going to be really problematic for this year you look at some of the reports we've seen from people like oracle and caterpillar and FedEx.
Our revenue growth is going to be tough to come by the rest of this year.
You know -- -- you agree with that do you think that that on the revenue -- to take a look at focus on the S&P earnings growth.
That there is -- -- there.
No I don't think so I think -- we're expected and -- below double -- -- growth in earnings this year which is probably a little bit higher than what -- is expected.
But I think you know that economic data -- getting better in the consumer.
It's still a little more frisky.
You know they're they've seen a net worth go -- And -- and comes up a little.
I think that that's a big catalysts for the marketing a -- and also houses doing well is very easy to make a -- case but the market does go down 5% three times a year in campers and one time a year -- so.
We could have a sell off but I think the market will close this and he had about 1595 for the year.
Okay see -- a very different targets for the S&P by the end of the year I don't wanna kind of -- in this -- lawmakers -- in a -- -- we're pushing 10% gain for the S&P.
You're today so for 2013 Charlie you're saying 15100.
To 1550 -- mean that's where we're sitting right now so no growth.
But Teddy to -- you're saying 59.
In if you look at the large cap us stocks relatively small caps there's about 20/20 5%.
Disparity there and I think that you know that the multiple can expand.
You know the long term average for further.
S&P in the the stock -- Right now where fourteen I think Europe's nice surprises -- do and that's gonna definitely.
They increased the confidence of investors NASA pushed the market -- All right Charlie and I noting embarrassing you're saying that again that we're gonna be saying that simple arrangement try a couple of things -- going on in a -- mentioned the housing market we -- -- incredible data today on the housing market we're gonna get to that and the next segment.
The China Housing recovery seems to be it got look at the homebuilders look at the numbers from multi from KB that we're getting out today mean these are strong earnings.
That are being part ahead of the fact that people are buying homes wouldn't that be a market bowl -- news in your opinion.
I think it does bolster the the the case for US consumers.
I'm I'm a little concerned that a lot of the growth in home prices over the past year -- so has been driven by hedge funds and cash buyers I'm not sure really how sustainable that is.
Without income growth and and mortgage growth.
The mortgage market really is gone nowhere.
For the last three years and I really don't think that we can have a a truly healthy housing market until we get the trade up market going.
There's really no sign of that so we don't expect home prices to rise another 7% this year as they didn't point while -- that's going to be a problem for on the economy and the markets.
All right you know did you let me get this in some specifics that they have to take all of the technology sector one of the pieces a -- -- that we're seeing today I know.
That you're taking a close look at apple right now you like the soggy biggest gonna grow what -- targets do you have on apple -- I could see apple going back up to 600 over the next year you know and what's happened that apple but it is what everyone expected they got a little too big -- too fast.
And they become the target you know I've been crosses similar how much Microsoft.
Was the target a few years back but the company still has great growth -- -- Product cycle still strong you know stocks really cheap you know everybody's bearish on apple but I think the stops and prove everyone wrong this year -- Going to comfortably into the mid five -- this year.
And Charlie you'd like that you -- and -- -- -- tech they don't wanna get your take on SanDisk using the business -- that's kind of in your peripheral right now why you like SanDisk Charlie.
Well we think it's actually a better way to plays Smart from growth then -- then apple.
The the capacity growth in Flash Memory has stopped and that you look at the seasonal that it seasonal history history of flash pricing it typically falls between Christmas and the end of the first quarter this year Flash Memory prices have increased more than 10%.
So that's a real anomaly we think the your earnings estimates for SanDisk -- gonna continue to push up their gross margins could push close to 50% this year so.
And they can -- somewhere north of four dollars in the earnings estimates are still.
10% below that so we think that's a real opportunity.
That would allow viewers know you'll like CEO like acts cl let's -- -- chemical business Teddy quipped that last ready I'm curious about your banking that's -- -- broker with BB NT.
Teddy at the stress -- front -- front late to be BN TY alike -- Well I've -- and -- an area of the country that's gonna continue to grow I -- the south and they were decimated by real estate but this come anxious about the in the -- folded their loan portfolios pretty it is getting bad they're better I think that just a stress test results put a damper on on the stock -- All -- all the companies to have an appropriate fast at some point they're going to be at a -- dividend the way they they relied.
And I think it's one of those companies that if -- even depict potentially be a takeover talk target.
I can very had -- there -- the south.
Let's take a take -- target there you got president saying option that I company is well what default -- -- on the show Teddy.
And of course Charlie to you as well tape -- -- Smith great to have you both back again.
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