A more de­fen­sive ‘Baker’s Dozen’

The Oklahoman - - MONEY & MARKETS -

Sabri­ent Sys­tems’ an­nual “Baker’s Dozen” stock picks have mostly out­paced the broader mar­ket over the last decade.

Last year’s port­fo­lio notched an av­er­age to­tal re­turn of 26.5 per­cent, in­clud­ing div­i­dends, by the end of the year. By com­pari410 5+( 5$0'$3' 113’s

500 in­dex had a to­tal re­turn of 20.2 per­cent over the same pe­riod.

In com­pil­ing this year’s 13-stock port­fo­lio, Sabri­ent looked for stocks that, given the mar­ket’s run-up in 2017, wouldn’t be over­priced.

“We wanted to be more de­fen­sive than we had been the last few years,” says David Brown, the firm’s chief mar­ket strategist. “We don’t want to be buy­ing the com­pa­nies that are the most over­val­ued,

even if they ap­pear to have a lot of growth com­ing this year.” Brown is bet­ting there are big val­ues to be had in en­ergy. This year’s list in­cludes three en­ergy com­pa­nies: Cabot Oil & Gas, +(7310 $0' $3$5+10 (531.(6/

He also ex­pects semi­con­duc­tor com­pa­nies like Lam Re­search and ON Semi­con­duc­tor to be big gain­ers as de­mand ramps up for con­nect­ing de­vices to the in­ter­net.

“We’re very pos­i­tive on the smart chips, on the in­ter­net of things,” Brown says.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.