6 Value Plays For Investors: Strategists
Turn to invest in individual stocks that didn’t perform as well in 2010, said Matt Fahey, director of equities at M&I Investment Management.
“I looked at stocks that didn’t perform well last year that I think will do well this year, and they are scattered among different sectors,” Fahey told CNBC.
“All these firms have strong franchises, strong free cash flow, but lagged last year for various reasons.” (Scroll down for his full picks)
In the meantime, Maury Fertig, CIO of Relative Value Partners, said he sees some good opportunities in the closed-end fund area.
“In November and December, we saw a real breakdown in the fixed income closed-end funds which had been strong throughout the year,” he said. “When rates backed up, retail investors ran for the exits and dumped these funds in a big way—and I think there’s decent opportunity there.”
Fahey’s Value Picks:
Whirlpool —“They will probably earn between $9.50 to $10 a share this year," Fahey said of the firm. "About a third of their business is now in Latin America and Asia—they’ve divested away from the domestic market."
Blackrock Pref. —“This fund is a multi-sector bond fund and has a BBB average rating and yields 7 percent," said Fertig. "An interesting aspect is that it’s trading at a 14 percent discount, and the average fund in this sector right now is trading at about a 4 percent discount.”
Royce Value Trust
Scorecard—What They Said:
- Fahey's Previous Appearance on CNBC (Jul. 13, 2010)
- Fertig's Previous Appearance on CNBC (Nov. 11, 2010)
More Market Intelligence:
- Markets Will Grind Higher in First Half of 2011: Strategist
- US Markets—The 'Place to Be' This Year: Stock Pickers
- 6 Strong Recovery Stock Plays: Strategists
CNBC Data Pages:
Fahey owns shares of WHR, TDW and LXK in the Marshall Midcap Fund.
No immediate information was available for Fertig or his firm.