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-- on the money okay -- rather than a crash as sandy -- things that the second quarter earnings who are gonna see two thirds of the company's.
The estimates you think it's even better drives are -- city.
I really do I mean I think there's always the fear right in the 1990s.
We saw how far different periods stacks -- going through the rough people referred to as a bullet -- market at that point.
But we're paying 45 dollars in stock price for every dollar profit today were paying sixteen dollars and stock price for every dollar profit.
You've got good dividends dividend growth great balance sheets.
Companies are generally beating estimates David to that point about 70% of the time we think that pattern continues in the second quarter.
And it's really tempting for investors understand and really to be nervous that if we think you really scrub your portfolio careful what you buy.
We'd rather be in this market that out of this market for.
Right so let's get to how you'd be and it you've got three names in -- we found her -- very interesting because some of them really don't seem to be well at least a -- Currently it when it comes at a climate relevant.
Arctic cat is one of your names are picked out -- out because -- you also like acacia and broker broker court it's so fascinating to me you really like Arctic cat walked.
Acting Arctic cat outside with -- -- a discussion you just -- about the small campus is a small cap companies 600 million dollars.
It's a company that everybody thinks oh -- at a snowmobile right.
But they've morphed into an -- TV company with some really exciting new products there a global distributor.
They've had a history of beating earnings and had a history of being sales.
They're only selling -- twelve or thirteen times forward earnings they've got a nice apparel and accessories and parts business.
That's a very substantial margin contributor to the company.
And the -- we -- even -- -- -- high forties now is still a very attractive company -- a good solid play and diversified around the -- that -- let me tell you what appeals to me at least is an outside observer and acacia technologies first of all -- -- when you look at its stock price over twelve months.
I've had a low of twenty high of forty it's 24 right now so it's in the low at one of those few stocks that hasn't run out of sight.
Secondly it it it is one of those starts that George Soros you may not like George source personally.
But sometimes he takes great stocks and and that's Arctic cat we wanna go to a case -- which is the other stock that we -- look at -- ship collects patents that's what it does.
And it's one of those stocks that is really seems poised to take off right now.
Explain more about.
Well the -- that's exactly right David he did a good summary of what the company does they they collect portfolios and intellectual property and it covers the gamut everything from Telecom to.
Technology to health care.
And basically it's an end in a real nation that mark by the way we're looking -- the stock price right now over a three month period and you look at that one piece where went down.
Went down tremendously from about thirty down to where it is now in the in the low twenties what happened they -- and why is it gonna recover.
Well if it's already recovered if it continues to have some volatility too because it is a relatively small man in many cases not very well understood its lesson.
-- billion dollars in market -- maybe a billion to.
But the fact of the matter is that they're expected to grow earnings in the twenty plus percent range going forward.
And the multiple as you pointed out is only eight times forward which may be one of the things that Soros likes it.
We like it in -- being on mutual funds and it's been a real hero for us overtime and we think there's more to run an -- for sure Seve to you can commodities here.
You know we're not really or we like to be diversified we're big believers in being diversified.
But you've got a lot of long position in commodities already in your oil and natural gas -- positions that you might have -- a diversified energy portfolio.
So were cautious on commodities obviously very undervalued if you started to see things pick up an emerging markets.
We might turn on that list but I think right now we're still a little -- -- caution and underweight on the -- side sandy Lincoln great stuff as always please come back and -- is often thank you very much good to see is Scott -- -- -- we're gonna check back with -- -- a couple of minutes.
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