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Goldman has a few stock picks for you
By Rob | April 28, 2008
What a lousy day in the market, a? I think you’d have much more fun reading about my dating experiences last week, but here it comes:
Goldman initiated Visa (V) with buy and gave a $90 target. Visa is definitively one of the strongest-positioned companies we cover across both Data Processing and Specialty Finance, with unique brand value and processing scale that differentiate the company from its payment peers. Visa will report its first quarterly earnings report since its IPO after the close on April 28.
Potash(POT) was taken off the Convinction List at Goldman with negative consequences for the stock. Here is what Goldman said: ” Nevertheless, with an increasing focus on escalating food prices, we believe that much of the incremental positive news flow has occurred and near-term surprises may be more tempered and less lucrative for the stock. Macro issues such as a strengthening US dollar and political discussions of revisiting ethanol policies could have a transitory impact on the path of commodity prices and influence POT’s valuation. Furthermore, less aggressiveness on the pricing font could disappoint momentum investors. ”
Homebuilders are expected to still face more music this year. I estimate that home prices are also likely to decline a further 5%-10% from current levels on average. And I remain concerned that many builders have much more land than they need for years to come. However, Goldman believe that new home sales will fall 10-20% more. The might be right, but who can really tell for sure.
Hospitals are also starting to do well. At the close of the first week of hospitals’ 1Q2008 reporting, the group is up 12%, outperforming the S&P 500 by over 11.5%. Across-the-board appreciation likely reflects positive data points emerging from Health Management Associates and Universal Health Services, the first two hospital companies to report. Goldman likes Community Heath and LifePoint the best.
Two other stocks that kick ass are Bucyrus(BUCY) and Joy Global (JOYG) mining equipment manufacturers stand as major beneficiaries of the intensifying energy reinvestment cycle, with global coal companies’ cash flow forecast +30%+ in 2008-09
Last, the firm expects Akamai (AKAM) and Symantec to report good earnings. About Akamai: “In general, we view Akamai as relatively insulated from slowing economic conditions given its positioning in rapid growth markets. However, we are somewhat cautious on the company’s outlook given the “nice-to-have” nature of content acceleration in some areas of its market and signs of slowing advertising spending on a macro level. Our 12-month price target is $35.00. ”
Three keys to a long life: Eat less. Make family a priority. Banish stress. (Good luck.) Eating less is function of portion control.
Alavert is great for allergy control: Allergy season, for some of us, is here. My friends swear by Alavert, an over-the-counter pill. Don’t take it unless you really need it. The “adverse effects” detailed here will turn you off living.
New York taxis will be all hybrid. By 2012 all of New York’s 13,000 taxis will have to get at least 30 miles a gallon on the city’s streets. Hybrids are the only ones that can meet that goal. Today about 7.8% of the fleet are hybrids, 83% of which are the Ford Escapes. My own questioning of cabbies: They spend $22 for a 12 hour shift with a Ford Escape, but $45 with a Ford Crown Victoria. For more on The Greening of the Yellow Fleet.
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