As markets edge higher Monday, CNBC asked the experts how to leverage your portfolio.
Valuing Tech: RIMM
“That’s one of the best fundamental stories in technology in our views right now. They’re going to report next week, and it’s— I think they’re going to see a significant guide in consensus. Their business is just hitting right now, and it’s because wireless Internet has finally hit the inflection and their carrier channel is so big, 325 carriers around the world, that they’re pushing this product harder and the penetration is very low.”
- Rob Sanderson, American Technology Research
Picking Up Retail
“From the point of view of a money manager, or from the point of view of an investor, if you have more than a one-year time horizon, there are some great opportunities right now… The first name is Phillips Van Heusen , which is a great retailer… The stock trades at only ten times earnings and Calvin Klein is really the growth opportunity within this company.”
- Jonathan Vyrost, Paradigm Value Fund portfolio manager
Bullish on IBM
"Well if you look in tech there are some very attractive valuations. You’ve got to find stocks where—you know—the street is underestimating the long-term prospects and where there’s a near-term positive catalyst. And IBM is a good example there...Their geographic diversification gives them a cushion against what’s going on in the U.S. The growing large service revenues—about 75 percent of revenues right now, from software and services -is a much less volatile earnings stream."
- Mary Jane Matts, Fifth Third Asset Management
"General Mills is actually my top pick of the U.S. big caps right now. I think they have great innovation, great top line growth, and because there’s so much worry about grains, they have 'Mills' in their name; it makes people worried about it. But, they do have pricing power, and 15 P/E [Ratio], and I'm very comfortable with that name."
- Jonathan Feeney, Wachovia Securities analyst