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-- so good we had to have a whole block just for him that's very good Steward brought him back Davids are -- from a Loomis Sayles and company and -- show over to help us out as well guys thank you so much David thanks for sticking with us.
David let's talk about revenue because that has been the bugaboo of this earnings season that.
A lot of companies have done well on the bottom line -- beat expectations but not so on the top line and revenue.
Is that going to be a drag -- going into the next quarter.
It's it's at least going to be an uncertainty I'd give the first quarter earnings reports a beat.
Importantly cash flow got a B plus -- earnings get about a C.
And ask etc.
I think one of the risks to the market is it's not Europe we know Europe is weaker but it -- -- here and gives them points and assists forgive me for running ahead here but this is SharePoint really is that is that.
The revenue hasn't -- the stock market at all the first where there's been the most spectacular first quarter I think in you know in history if not in history at least in my lifetime so it hasn't hurt.
Really dragged the market down in the second quarter though it's revenue continues to be a drag.
Not -- revenue and the economy has some more material.
-- deceleration or disappointment.
Six months -- from the November 15 -- Small -- cyclical stocks are better than 30% large -- stocks about 26% you're right it's been a terrific run.
I think it's really a run on the back of good valuation.
Good cash flow good dividend growth that's been a key ingredient -- to stock prices moving higher at the same time that most pockets of the bond market.
Year to date -- up less than 1% unless you're at high yield market.
Well again I mean that any Buffett was to say more about what was saying that the annual shareholder meeting.
Flat out treasuries are not gonna give you any yields at this point so let's get right to what will.
You've got three picks right now I want to get them up on the screen because we're still waiting on the tape for JC Penney's numbers to come out so let's get your numbers right up off the bat.
Dresser ramp up 40%.
With the PE of fourteen you've also got Trinity Industries -- you really like and then Qualcomm which was a pick from last time around.
It's a Dresser-Rand what entice as you about this company.
It it is my belief that work.
In baseball terms bottom of the third inning in this whole energy infrastructure story here in the United States that make turbines for -- Stop production in the after market.
I think that's a great play in the -- energy infrastructure story.
And it quickly move on you know trinity -- is the same story two is it it it's not transportation company they do.
Rail cars -- barges for holing gas and oil.
And -- absence of meaningful pipeline.
Expansion those are two I think important energy infrastructure stories.
That debt -- -- more room to run and they're more in the small midcap area of the market which I like.
Where there's going to be more acquisition activity not to say that these two stacks could be acquisition candidates but I think you're gonna see that as a positive case.
Larry the thing that thing that's interesting about David fixes they really do rely on a strong economy and underlying chronic disease or industrial stocks these are stocks that that -- with the economy and today we got -- numbers and the economy get the jobs numbers disappointed.
The housing numbers disappoints of that.
That story is not settle this it.
It's not -- -- a third that number is a CPI for April causing gold to go down.
However at least -- private sector is moving in the right direction about 3% growth.
It's not growing but we're going in the right direction.
And to David's point earlier we have like a severe output gap in the economy -- that he'd wages low -- -- cash balances through a private sector.
And the corporate sector -- -- artificially gonna continue to keep our stock market.
Perhaps higher than the economy would suggest Larry's show -- David Sowerby gentlemen thank you very much a busy day appreciate -- being here actually that we are --
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