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300% Returns Are Expected For Technology Stock Pick Due To Patent Case: Portfolio Advisor Cottingham Management Selects Other Current Stock Winners
Monday November 23, 9:44 am ET

67 WALL STREET, New York - November 23, 2009 - The Wall Street Transcript has just published its TWST Investing Strategies Report offering a timely review of the sector to serious investors and industry executives. This 55 page feature contains expert industry commentary through in-depth interviews with highly experienced Money Managers. The full issue is available via The Wall Street Transcript Online.

Topics covered: Investor Demand for Transparency - High-Liquidity Environment - Undervalued High Quality Companies - Inexpensive Valuation - Short Suggestions In Overvalued Growth Stocks - Stretched Balance Sheets - High Returns on Capital - Volume Growth - Multi-Cap Approach - Extreme Value Discipline - Macro Outlook - Value and Momentum - Lower Volatility Growth

Companies include: Belo Corp (BLC); 3M (MMM); A.H. Belo (AHC); Affiliated Computer Services (ACS); American Safety (ASI); Ameriprise (AMP); Apache (APA); Apple (AAPL); Atwood Oceanics (ATW); Bank of America (BAC); Boeing (BA); Brown & Brown (BRO); Bunge (BG); CME Group (CME); Capstead Mortgage (CMO); Chevron (CVX); ChinaCast Education (CAST); Citi Trends (CTRN); Coca-Cola (KO); Cognizant Technology Solutions (CTSH); Conseco (CNO); Consolidated Edison (ED); Costco (COST); Cypress Semiconductor (CY); Danaher (DHR); Duke Energy (DUK); FARO Technologies (FARO); GIII Apparel (GIII); Gannett (GCI); Gilead Sciences (GILD); Goldman Sachs (GS); Goodrich (GR); Google (GOOG); Halliburton (HAL); Harley-Davidson (HOG); IBM (IBM); IDEX Corporation (IEX); IMS Health (RX); JPMorgan (JPM); Johnson & Johnson (JNJ); Kimberly-Clark (KMB); Kinross (KGC); Legg Mason (LM); NIC Inc. (EGOV); Nestle and Alcon (ACL); New York Times  (NYT); Newmont Mining  (NEM); Owens-Illinois (OI); Penson Worldwide (PNSN); Precision Castparts (PCP); Procter & Gamble, (PG); Rambus (RMBS); Research In Motion (RIMM); Roper Industries (ROP); Schlumberger (SLB); Smucker (SJM); Stein Mart (SMRT); Steven Madden (SHOO); Talisman (TLM); Thermo Fisher Scientific  (TMO); Transocean (RIG); UnitedHealth (UNH); Universal Health Services (UHS); Wal-Mart (WMT); Washington Post (WPO); WellPoint  (WLP); Xcel Energy (XEL); Xerox (XRX); Yamana Gold (AUY).

In the following brief excerpt from just one of the in depth interviews in the 55 page Special Report, a top tier Money Manager discusses the outlook for the market for investors.

Stephen Bick is the Managing Partner of Cottingham Management Company LLC, a San Diego-based financial services company, where he operates as Portfolio Manager of Cottingham Development Fund LLC, a hybrid fund investing predominantly in stocks, commodities and futures. He holds a BA degree in economics from the University of Cape Town and is a Chartered Financial Analyst (CFA), a Certified Management Accountant (CMA) and a Certified Insolvency and Restructuring Analyst (CIRA). He worked as a turnaround strategist with Kroll Zolfo Cooper, where he performed business valuations, analyzed the risk in energy trading strategies and was involved with developing plans of reorganization for multibillion-dollar companies. He also ran a $500 million bond fund in London for two years for a German insurance company, and worked as an Analyst for six years, dealing in private and public equity business valuations, commercial litigation and bankruptcy.

TWST: What are some of the stocks in your portfolio that you feel are representative of your investment approach? Why were you attracted to them?

Mr. Bick: We've got everything from speculative plays to macro plays. I believe that there is a fundamental and a macro case for gold to appreciate from here. We've got some exposure to Yamana Gold (AUY) and Kinross (KGC). That's more of a macro play; and the fact that gold is appreciating should translate into appreciation for these stocks as their earnings should accelerate going forward, resulting in an excellent return.

Then in the technology sector, I have a decent exposure to a company called Rambus (RMBS), which is a speculative play. They are in a number of lawsuits to protect their patents, and I think those lawsuits should come to fruition in January 2010. That stock could easily have a 300% increase if the court rules in their favor. Up to now everything that I have seen points to that.

Another technology stock is Cypress Semiconductor (CY). I believe Cypress is really starting to take over from Synaptics in terms of the touch screen technologies. I actually at one point made a lot of money shorting Synaptics, but I think Cypress is a fantastic buy opportunity here.

In terms of fundamental investment ideas on the insurance side, I hold American Safety (ASI), and then I also hold Conseco (CNO). Both of those are significantly undervalued in terms of book value - both profitable, both profit margins are growing. Their book value is accelerating to the upside. Those are good plays.

Outside of that on the long side, we hold a Chinese investment, ChinaCast Education (CAST). They just announced earnings, which were fantastic. Their earnings have grown significantly through acquisitions. They provide various types of learning throughout China, both through the normal brick-and-mortar education channels through their universities and then also through online learning, which is really what accelerates the growth. The way China works is that every accredited university you own, you're able to attach onto that a certain number of online learning students, and that's what they are able to do because they are accredited on the online side. They can buy a university and then accelerate growth by adding on thousands of online students. That would be an example of another growth play where earnings are accelerating, and I think the stock can appreciate significantly from here.

STEPHEN BICK

Cottingham Management Company, LLC.

More of this interview can be obtained via The Wall Street Transcript Online .

The Wall Street Transcript is a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs and research analysts.

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