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1. Long Enterprise Technology. Buy IBM (IBM) between $183 to $187.
Stable like a rock big blue will look towards ten bagger acquisitions for growth.
2. Long Enterprise Technology. Buy Ebay (EBAY) between $50 to $53.
Not a traditional enterprise tech play but the global dominance of the PayPal business unit allows plenty of room for growth & buffers the company from the outdated auctions business. We also hear rumors of a Paypal spinoff which might mean a special dividend.
3. Long Enterprise Technology. Buy Hewlett Packard (HPQ) between $24 to $27.
Meg Whitman has work cut out for herself but she has made sure HP is progressing on the right path.
4. Short Consumer Technology. Twitter (TWTR). Between $65 to $60.
Short term (FY 2014) revenues may not be able to keep up with market valuations.
5. Construction. Buy Caterpillar (CAT). Between $84 to $88.
US housing recovery & a bottoming out in Europe should help CAT offset slower growth in the BRICs.
6. Banks. Buy Deutsche Bank (DB) Between $45 to $47.
Surprise rate cut (repo) announcement in Nov. by the ECB and a low interest rate environment should boost fixed income trading and corporate lending businesses. Also it's the last of the 'too big too fail' bank stocks trading at the same level as in March 2009.
7. Mining. Buy Vale (VALE). Between $15 to $16.
Monstrous tax bill which was reduced under amnesty should help the company slow asset sales and support the stock as earnings recover into 2H 2014.
8. Agriculture. Buy Potash Corp (POT) between $30 to $33.
If you believe the world needs food. Your portfolio needs Potash. Stock has been hammered three years in a row on pricing concerns & volatility of potash prices, which are should stabilize by mid-2014. This will help increase demand & support a earnings rebound going into the 2H of 2014.
9. Mining. Buy Arcelor Mittal (MT). Between $16 to $18.
3 years of pounding under a heavy debt load, company should see some relief as steel demand kicks back into gear by mid 2014. Lowering of debt will also support the stock of the worlds largest steel company.
10. Non Cyclical. Buy Proctor & Gamble (PG). Between $77 to $80.
Management continues to execute well despite AG Lafley coming on board for just a couple of years. P&G is bringing down it's marketing expenses as a % of revenue in countries like emerging markets which bodes well for future growth.
11. Short Consumer Tech. Short (Sell) Baidu (BIDU) between $175 to $190
Like Twitter (TWTR), it faces short term headwinds and valuation based on revenue/profit growth is already priced in.
12. Distressed. Buy Sears Holdings (SHLD) between $44 to $47
Sears has a long way to go to come out of distressed territory but Eddie Lampert's strategy of selling assets (eg: Lands End) might just leave it more leaner & therefore manageable in 2014.
13. Gold. Buy ABX (Barrick Gold) between $16 to $18.
Gold has been annihilated in 2013, but as the Fed taper accelerates going into 2H of 2014 and the USD/YEN weakens, gold & stocks associated with gold should see some recovery.
14. Distressed. Buy DryShips (DRYS) between $3.80 to $4.25
Its taken a while for the shippers to crawl themselves out of a hole, but the Baltic Dry Index which tracks shipping rates has seen a bottoming out of rates with a modest recovery. George Soros & Wilbur Ross have bet on a bunch of shippers, DryShips the worlds second largest drybulk shipper is likely to be a beneficiary.
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