Fresh ideas may be hard to come by in this tape but Breakout found someone willing to stick their neck out on names both obscure and hiding in plain sight. Hilary Kramer, editor of GameChangerStocks.com, has picks galore. With no further ado:
* Goldman Sachs (GS): With a regulatory overhang that's second to none, including a subpoena today and a stock that's fallen 20 percent in less than four months, you'd instinctively think to avoid buying. But Kramer says that's all wrong and "Goldman is good for a short-term bounce and a long-term home run." She says GS will successfully fight off any charges, adding that their ace in the hole is that their client base is very sophisticated and signed agreements saying that they understood the risks. She owns the July call options because she thinks a buyback announcement could be coming.
* Evercore Partners (EVR): Kramer says this boutique investment bank is the antithesis of Goldman in that it has no regulatory issues and they're building their franchise by taking talent from the now heavily regulated old-school competitors. One way they're doing it is through higher pay. Evercore is "very much a fiefdom where [employees] can take home what you kill." That's an employee magnet in the current environment for bankers, leading to a stock Kramer says could be as high as $100 in a few years. She points out that this small investment bank has been involved in five of the top 10 transactions in the past 12 months, including T-Mobile, and is poised to see its earnings explode as those deals close.
On the more defensive side of things two medical device makers are on her radar as takeout targets. Mako Surgical (MAKO) is one she describes as a cheaper, faster-growing version of Intuitive Surgical (ISRG). Robotic surgeries are less invasive and cheaper, thus experiencing rapid growth. "I want to wake up and see that MAKO has been acquired at $42 and I own it at $31," says Kramer.
Meanwhile, rival company TranS1 (TSON) is smaller but also susceptible to a takeout, Kramer says. She adds, their cheaper, less invasive spinal fusion franchise is growing rapidly and that could attract the likes of a Zimmer (ZMH), Stryker (SYK) or J&J (JNJ) which she also really likes at this level.
So there you have it. A little something for everyone. Bold. Defensive. Out of favor. Momentum. M&A-themed. Pure old-fashioned stock picking in a stock pickers market.
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- Intuitive Surgical
- Evercore Partners
- hiding in plain sight
- Goldman Sachs
- spinal fusion
- boutique investment bank
- medical device makers