Best Ideas Portfolio Working Overtime!, by Brian Nelson, CFA
The past few weeks have been slow in terms of news flow, but the Best Ideas portfolio (see page 8) has been working overtime! Apple (AAPL) and Altria (MO) continue to advance nicely, and the portfolio benefited from the recent performance of DirecTV (DTV), which was removed from the portfolio May 23 at ~$84 per share. If you are not receiving our Best Ideas transaction alert emails, please be sure to let us know. For those following the portfolio closely, Apple completed a 7:1 stock split and Union Pacific (UNP) completed a 2:1 stock split. All told, the Best Ideas portfolio added 150 basis-points of outperformance since the last update.
There are a few things worth paying attention to in this edition. First, the piece on Intel (INTC)—see page 2—goes into how the chip giant is making inroads in mobile as PC demand stabilizes. The company has been a fantastic performer this month, and we may see upside to its $30 fair value estimate if the pace of operating improvement continues. On page 10, we address a number of items impacting Best Ideas portfolio holding eBay (EBAY), and while we’re not happy with them, significant valuation upside exists with shares. Our fair value for eBay is close to $90 per share. On page 13…
To continue reading, please click .
INSIDE THIS ISSUE
1 Best Ideas Portfolio Working Overtime!
2 10-year Highs: Intel Makes Splash in Mobile (ticker: INTC)
3 AIG Scooping Up Its Own Underpriced Shares (ticker: AIG)
4 The Hidden Advantage
7 The M&A Environment Remains Robust (see article for tickers)
8 Our Best Ideas Portfolio (see article for tickers)
10 Assessing Materiality of 5 Relatively Poor Incremental Data Points from eBay (ticker: EBAY)
13 Siemens-Mitsubishi Consortium Looking to Spoil General Electric’s Deal (tickers: SI, GE)
14 Analyst Job Preservation and the Conflicts of Interest That Prevail
17 The Watch List
19 Featured Reports of Business Quality: ABT, XOM, PG
22 Our Stock-Selection Methodology
29 How We Use the Valuentum Buying Index in the Best Ideas Newsletter Portfolio