Stock Picks: MBA Ideas
Cory Scott is a second-semester MBA student at the Walton College of Business at the University of Arkansas. And he's been doing his homework.
He's already wading into the tricky waters of managing investments. There's about $350,000 in his fund, the student-managed Shollmier Fund -- and it's up an average of 7.5 percent per year over the last three years.
What's Scott's strategy?
"We're actually value investors, mixed between value and growth," he told CNBC. "We actually have a hybrid fund, so we have great flexibility; we have futures, options, and a lot of possibilities we can run with."
Recommendations:
His first pick is no surprise: Arkansas' own Walmart.
"Americans like to save money, and Walmart fits the bill," he said. "We like them, we like their growth in China, and Mexico, and the things they're doing."
Energy also figures in the plan.
"We like Transocean," he said. "They're flush in cash...they're also in prime position in the industry in case Congress lifts the (ban on offshore drilling)."
His third pick combines health care and technology.
"We also like Medtronic, medical devices; that's the inevitable future of the actual demographic of the United States population," he said.
Scott isn't just concerned about plus signs; there are a few minuses on his mind as well.
"We do a lot of shorts," he said. "I would actually like to short Research In Motion right now; with the cell phones and the smart phones...the market is coming to maturity."
