67 WALL STREET, New York - July 9, 2013 - The Wall Street Transcript has just published its Investing Strategies Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Bottom-Up Stock Selection - Cyclical Sectors, Exposure to Emerging Markets - Large-Cap, Deep-Value - Value Oriented Strategy - High-Quality Companies - Value Investing, Deep Value - Longer-Term Investing
Companies include: Novartis AG (NVS), Chevron Corp. (CVX), Exxon Mobil Corp. (XOM), The TJX Companies, Inc. (TJX), Vertex Pharmaceuticals Incorpo (VRTX), Illumina Inc. (ILMN), Amgen Inc. (AMGN), Syngenta AG (SYT), Google Inc. (GOOG), Apple Inc. (AAPL), Toll Brothers Inc. (TOL), Whirlpool Corp. (WHR), Duke Energy Corp. (DUK), AT&T, Inc. (T) and many more.
In the following excerpt from the Investing Strategies Report, an expert portfolio manager discusses his portfolio-construction methodology and his investment philosphy:
TWST: What are some of your favorite investment ideas or themes right now, and are there any sectors you are underweight or cautious about?
Mr. Jostrom: Let me tell you one that we're cautious about. We are cautious about the retail trade. We think there is still a lot of fluff in that business. There are some companies that consistently seem to do alright, like T.J. Maxx (TJX), but on balance we have a zero weighting on that sector, and it's based more on our macroeconomic view, which says that, yes, we have seen significant deleveraging of consumers, but we think the renewed wealth effect, because of the uptrend in housing prices and the stock market, is probably encouraging more spending than they have the capacity to absorb.
As a result, we may be borrowing sales from the future. We just don't think the retail market is strongly underpinned economically. We don't see the growth in the job market, we see that structural unemployment still remains high, and wages, while rising, still have the headwinds of tax increases and the Affordable Care Act, etc. So we're going to give that group a pass for the moment.
What we do like, and this is probably the more aggressive money that we have put to work in, is biotechnology. We believe that companies that are known for very high burn rates have come a long way, and in the genomic area there are opportunities here and there, where there are some biotech-related companies that actually have positive cash flow. And they are growing and developing from a one-product company to a two-product and so on.
We have been very happy investors in Vertex (VRTX). We know that the stock can be a bit of a yoyo, but we think the company was well founded years ago, and it has stuck to its knitting and continues to be successful. But when the stock is as volatile as it...
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
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