Muddled by inconsistent earnings and stock performances, one sector appears tougher and tougher to predict, CNBC's Jim Cramer says.» Read More
Don Wordell has some mid-cap ideas to help position your portfolio for recovery.
His four-star RidgeWorth Mid-Cap Value Fund is up an average of 12.29 percent per year for the last five years.
"Our process revolves around three things: Yield, valuation and fundamentals," he told CNBC.
His first pick is Mattel.
"They have the licensing arrangement for 'The Dark Knight,'" he said. "That's a tremendous blockbuster movie that's going to drive toy sales."
And that's not all.
"They have great brands: American Girl, Fisher-Price, Hot Wheels, and then, they've got the new Elmo Live toy coming toward the end of the year," he said. "We really are excited about the opportunity for Mattel."
Also on Wordell's list is Hanover Insurance Group.
"(They're) selling their life insurance business to Goldman Sachs, which is feeing up about $200 million in excess capital that they can then redeploy in higher- ROE [return on investment] businesses by making acquisitions or buying back some stock," he said. "We really think a stock trading at a discount to book value here is just a compelling opportunity."
Disclosure information for Don Wordell was not immediately available.
Jonathan Barratt, managing director of Commodity Broking Services, sees more upside to oil prices. He told CNBC that he believes oil prices could return to the $130- to $135-per-barrel level.
See Barratt's energy-market insights.
- Exxon Mobil
- Energy Select Sector SPDR
RNC Genter Capital Management's Dan Genter thinks the market has found a bottom. Dave Rovelli of Canaccord Adams isn't so sure. Both men have some ideas for investors about where to go from here.
"I think we have a floor below us that's somewhere around 5 or 6 percent below where we are right now," Genter told CNBC. "You have to buy into this market; you have to get a ticket on this ride, or you will eventually be left behind sometime in `09, but I think you have to be very selective in the sectors and the stocks you go into."
RNC Genter Capital Management's Dan Genter thinks the market has found a bottom. Dave Rovelli of Canaccord Adams isn't so sure. But both men have some ideas for investors about where to go from here.
Rovelli says Thursday morning's report on higher-than-expected initial claims for unemployment benefits was "a disaster," tying the hands of Federal Reserve policymakers who cannot now raise interest rates to counter inflation.
Rovelli's one recommendation is in the field of alternative energy.
"First Solar: Great earnings -- they beat on the top line and the bottom line -- we love this stock," he said.
Genter has far more ideas for investors than Rovelli. "In the techs...I'd stay more in the semis, and look...at Intel or an Analog Devices type of issue."
So Exxon Mobil has just broken its own record again, reporting a mind-boggling $11.6 billion profit on $138 billion in sales.
While it would be easy to protest -- and some will -- and easy to simplistically label it a windfall -- and many will -- the fact of the matter is that Microsoft is three times more profitable than Exxon.
Instead of only looking at the absolute numbers, professionals assess the degree of earnings power a company has via profit margins (net income divided by total sales). By that measure, Exxon doesn't even land on the medal platform of the the mega-cap corporations.
Herewith, the profit margins of the some of the biggest, using latest quarterly results:
- Exxon 8.4%
- Microsoft 27%
- Google 23%
- Johnson & Johnson 20%
- Apple 14%
- GE 10.8%**
- WalMart 3.2%
So the next time Congress thinks about hauling in the big oil CEOs to grill them about ruthless profiteering and gouging the American people, ask them to also invite Bill Gates, the world's 3rd-richest man -- and have him do some 'splainin'.
And dont even get me started on marketshare!!
More CNBC Investor Intelligence:
- Dow Oil & Gas Index
** GE is corporate parent of CNBC.
Options are playing on early morning earnings action, according to Rebecca Darst of Interactive Brokers.
Disney, Starbucks, Visa, Tyco Electronics, Electronic Arts: earnings season is in full swing and investors are wondering how to read the news.
Steven Wieting of Citigroup and Dirk Van Dijk of Zacks Investment Research offered CNBC their insights.
As oil prices pullback and inflation continues to rise, now is the time to invest in mining stocks, two investment strategists told CNBC Wednesday.
Bob Doll, CIO of global equities at BlackRock, named the stocks his firm is buying. His picks include Travelers -- and financials such as JPMorgan and Bank of America.
He also offered CNBC his market insights.
CNBC Video Reports:
"We think equities are the asset class to be in," David Fording told CNBC. The manager of the four-star William Blair Growth Fund also has some ideas about the star pupils in that class.
"We're buying a company like Fastenal," he said. "They're an industrial distributor, about a $7 billion market cap; we do think there will be a re-acceleration in U.S. growth, probably before the re-acceleration in global growth."