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The markets and what do we do going into some -- just sit there and leave your portfolio as it is on my next guest says no.
While he's skeptical of the economic recovery he has some ideas to help you make some money nonetheless -- poverty is the senior analyst at Hilliard Lyons the Wall Street Journal link him to the best on the street analysts survey this year.
Ranking him second best in oil and gas producers categories he looks -- consumer durables as well spending the last -- with us from Louisville, Kentucky good to see it thank you for being here.
We've got some data today consumer.
Confidence sentiment actually looked a little bit better than expected yet it was married with some weaker data and we we see the housing markets not coming back.
Do you still feel that there are ways to get -- yielded a portfolio.
In spite of all of that and how do you do it.
Well certainly there's income opportunities the the sectors have to be thought of separately -- of course I'm I'm limited to covering two sectors here.
Com the consumer numbers you cited at the front.
Always are you may have noticed -- grinned a little -- -- the fact it's up you know back into the mid seventies where the indexes set it a hundred ought to tell you something that.
If we're getting better it's from a much lower base and it's pretty incremental at this point and might.
That they might use with our brokers internally is that the fraud may be getting bored little bit more slowly this time of -- -- -- -- -- tough.
Yeah -- that that's true that's a good way of putting it.
But let's talk about one of your expertise serious and that is consumer durables first of behind that -- know what it is but I want our viewers to understand and then we're gonna pick out.
Three names that you like right now.
Sure it the term applies to household durable goods it's it's furniture bedding appliances things of that nature.
And because we have a terrible housing market everyone -- think stay away from these but -- -- no.
Well there was a great recovery following the great downdraft of oh -- -- nine comes through 2010.
Very strong -- you know 2030%.
That was -- is down 2030 even higher declines in the in the downdraft.
OK now we've got the three names -- -- -- through them aaron's ticker symbol AA and is your first one and as people are literally -- -- right now but listening to us on television so.
-- some important bullet points here about -- well like I'm sure they're still paying attention of course.
-- this -- -- the -- defying theme with all three of those names is that they're aimed at.
And at a less discretionary into the discretionary.
The does the term -- use is that these are more work needs based purchases then then.
Arens is number two rental purchase retailer in the country that's the mechanism by which household is able to.
Acquire say the washer dryer -- just burned out without access to traditional store credit or -- personal credit.
-- got about 11100 stores in the country we think that gives them room to at least doubled over the next several years.
They've had to throttle.
Pulled back a bit on store -- the last couple of years given the environment but.
The result of that has been a real increase in free cash flow and ebitda are roughly 75 cents.
Free cash -- Three dollars -- needed to have Sarah.
10% year over year what Rent -- Center we've we've focused on that company in the past talked to the CEO this is where you rent.
Durham -- heavy duty equipment like a dishwasher or washing machine or computer equipment right.
Rid listeners are in in my view already built out they've got about 3000 stores around the country.
That's probably about full.
They are stepping into Canada and Mexico we find that pretty intriguing.
-- and the PE price -- earnings ratio nine folks that is -- so when they -- when they've got that she PE that means you're not overpaying for the stock but it is up 29%.
Europe for year and finally US home systems US HS I haven't really -- this one but it's it's in essence a specialty home improvement company -- what got what a deal with Home Depot.
There are really a 100%.
Distributed through Home Depot there in the kitchen and -- service provider for -- -- that.
The value proposition here for a household is a fairly can get a re done.
Kitchen or -- for roughly 13 the cost of traditional -- out and reinstall.
It's it's it's been retracted.
The the the impact.
-- been the backlogs in new orders have been up in the near the double digits 203040%.
-- and that's vs.
Similar comes from a year ago so it looks looks to be sustainable you are radio voice second listen -- -- -- patrol told.
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