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So much so major averages right now hovering near the flat line but the Dow is over 151000 for a third consecutive day here.
Yes and he well it's only a few points off a sixth straight record close what revealed sell -- May -- well my next guest says.
-- happen in this here except signing agreement James chief investment strategist pleased to welcome back to the -- Jeff every line.
Agrees pretty much the markets over but yet they -- hit a buy into it -- to take on the helped the stock market right now.
Bull market mobile markets can stay overbought for a lot longer than than people think.
-- it putting it back to work in the summer I don't think that strategy plays this way I think the boys and girls another professional money managers are gonna have to chase stocks into the into the quarter.
So how would you chase stocks a lot of people have been questioning whether or not we're seeing -- sector rotations out of defensive -- some more cyclical names.
-- -- -- I think yeah I -- I think you are seeing that by my console.
What I should say this sectors and stocks in the overall stock market go higher and lower than people think.
And a lot of people been hiding out in the consumer staples in the utility sector which have been darn good performers but because of that performance.
They have become historically very expensive so I would be cutting back.
On that companies and those two sectors in in those in the companies in those sectors and I would be buying into.
Technology I think technology is valued cheaper than utilities and consumer staples right here I think there's a cycle that's gonna play they have clean balance sheets.
I think technology is undervalued.
Interesting because a lot of people have been steering clear of technology what sectors within technology -- -- -- -- lungs and stock picks SBA communications being one of them.
You're -- -- shares up 12% this is an information technology company why you like it where -- see the growth.
Well if you if you look at your hand held device I mean it becomes -- more apparent every year that.
Your hand held device or your mobile devices where the computer's going.
And a way to get that -- -- through the tower stocks and SBCI AE SP a C excuse me.
And American power favorably rated by our.
Tower analyst Rick premise.
They've had a good run.
They're starting to throw off nice free amounts of cash -- now and you can think on this real estate in the skies you need more bandwidth.
There -- go let's switch gears and talk about health care because -- sure like a lot of names involved in.
The health care industry whether it be medical devices -- -- some of the pharmacy names are also interesting -- you.
Let's start with Rite Aid and Walgreens -- shares up significantly get you see more room for these guys.
Walgreen made an acquisition over in Europe that was misunderstood do that drugstore chain -- alliance boots.
We think we have -- favorably rated by the way my fundamental analyst.
We think that in 2015.
Fiscal -- when he fifteen that the combination is gonna give Walgreen north of five dollars a share and earnings power.
And if you put just to normalize PE multiple on that you've got a 6465.
Rite Aid is another story gets a turnaround story -- new management here too it's a cash flow story.
As as things come together the clinics in the stores except for some of the leases roll off.
Rite -- probably has a billion dollars.
In cash flow in 2015 and we also have that fundamentally rated appropriately.
And another -- -- like that catches my attention Jack is decks comment this is -- medical device maker that.
Provides glucose monitoring services to people diabetes this is play on an exploding baby boomers.
Kind of depressing you know -- that's it.
Well but but if you look if you look as the boomers move into their sixties.
A lot of -- -- the wrong kind of foods they haven't gotten enough exercise.
And they don't want -- -- defenders.
So Dexcom makes the best wireless monitors out there.
And -- it's it's got a terrific manager who's built the company and sold it before.
And we think that Dexcom is going to be a decent growth story going forward we have an outperform rated stock picks are always fun we'll keep our eye on those thanks so much steps out we'll -- San.
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