Barron’s 2011 Roundtable Investor Picks: Marc Faber

Barron’s collected the opinions of ten market observers this weekend.  Following is a summary of one of these investors’ calls on the market. What do you think of their selections?  Be sure to stay tuned for an analysis of the other nine pundits’ calls.

Marc Faber: Marc Faber is a Swiss investor and market analyst who has gained fame, in part, for his consistently bearish views on the US and world economy.  Faber gives a number of picks in the Barron’s article.  The ones that follow are the one which trade on US exchanges.

  • Procter & Gamble (NYSE:PG): The stock has traded in a 52-week range of $58.92 to $67.72 and most recently traded at $64.77.  Its market capitalization is $180.79 billion, its P/E ratio is 17..07, its earnings per share is $3.80, and it pays a dividend of $2.10 per share.  About the company: The Procter & Gamble Company manufactures and markets consumer products in countries throughout the world. The Company provides products in the laundry and cleaning, paper, beauty care, food and beverage, and health care segments. Proctor & Gamble’s products are sold primarily through mass merchandisers, grocery stores, membership club stores, drug stores, and neighborhood stores.  Competitors include: Church & Dwight Co., Inc. (NYSE:CHD), Colgate-Palmolive Co. (NYSE:CL), The Clorox Company (NYSE:CLX), Kimberly Clark Corp (NYSE:KMB), and Johnson & Johnson (NYSE:JNJ).
  • Johnson & Johnson (NYSE:JNJ): The shares have traded in a 52-week range of $56.86 to $67..37, its market capitalization is $182.53 billion, its P/E ratio is 15.10, it earned $4.41 per share last year, and it pays a dividend of $2.28 per share.  About the company: Johnson & Johnson manufactures health care products and provides related services for the consumer, pharmaceutical, and medical devices and diagnostics markets. The Company sells products such as skin and hair care products, acetaminophen products, pharmaceuticals, diagnostic equipment, and surgical equipment in countries located around the world.  Competitors include: Pfizer, Inc. (NYSE:PFE), Merck & Co. (NYSE:MRK), GlaxoSmithKline (NYSE:GSK), Novartis AG (NYSE:NVS), Abbott Laboratories (NYSE:ABT), Eli Lilly & Co. (NYSE:LLY), Watson Pharmaceuticals (NYSE:WPI), Stryker Corporation (NYSE:SYK), Boston Scientific Corp. (NYSE:BSX), and Medtronic, Inc. (NYSE:MDT).
  • Roche Holdings (RHHBY:PINK): The shares have traded in a 52-week range of $31.69 to $44.46 and most recently traded at $41.98 per share.  Its market capitalization is $35.74 billion, its P/E ratio is 3.5, and it earned $11.99 per share last year.  The shares have traded in a 52-week range of $31.69 to $44.46 and most recently traded at $41.98.  Its market capitalization is About the company:  Roche Holding Ltd operates in the fields of pharmaceuticals and diagnostics worldwide.  It discovers, develops, and provides diagnostic and therapeutic products and services that enable patients and healthcare professionals in the early detection, prevention, diagnosis and treatment of diseases.  Competitors include: Novarts AG (NYSE:NVS), Johnson & Johnson (NYSE:JNJ), GlaxoSmithKline plc (NYSE:GSK), Merck & Co. (NYSE:MRK), Bristol Myers Squibb Co. (NYSE:BMY), Abbott Laboratories (NYSE:ABT), Sanofi-Aventis SA (NYSE:SNY), Pfizer Inc. (NYSE:PFE).
  • H.J. Heinz (NYSE:HNZ): The shares have traded in a 52-week range of $42.88 to $55 and most recently traded at $53.33 per share.  Its market capitalization is $17.16 billion, its P/E ratio is 17.43, it earned $3.06 per share last year, and it pays a dividend of $1.92 per share.  About the company:  H.J. Heinz Company manufactures and markets processed food products throughout the world. The Company’s principal products include ketchup, condiments and sauces, frozen food, soups, beans and pasta meals, infant nutrition and other processed food products. Competitors include: Campbell Soup Company (NYSE:CPB), Ralcorp Holdings, Inc. (NYSE:RAH), TreeHouse Foods, Inc. (NYSE:THS), The Hain Celestial Group (NASDAQ:HAIN), ConAgra Foods, Inc. (NYSE:CAG), Kraft Foods Inc. (NYSE:KFT), General Mills, Inc. (NYSE:GIS), and Unilever plc (NYSE:UL).
  • Raytheon (NYSE:RTN): About the company:  Raytheon Company operates in defense, homeland security and other government markets. The Company provides electronics, mission systems integration in the areas of sensing, effects, command, control, communications and intelligence systems, and mission support services. Raytheon provides products and services worldwide.  Competitors include: The Boeing Company (NYSE:BA), General Dynamics Corp. (NYSE:GD), Northrop Grumman Corp. (NYSE:NOC), Lockheed Martin Corp. (NYSE:LMT), Kratos Defense & Security (NASDAQ:KTOS), ITT Corporation (NYSE:ITT), Rockwell Collins Inc. (NYSE:COL), Honeywell International Inc. (NYSE:HON), FLIR Systems, Inc. (NASDAQ:FLIR), and Alliant Techsystems, Inc. (NYSE:ATK).
  • iShares iBoxx$High Yield CorpBdFd (NYSE:HYG): Faber says to short this stock.  About the company:  iShares iBoxx $ High Yield Corporate Bond Fund is an exchange-traded fund incorporated in the USA. The Fund seeks investment results that correspond to the price and yield performance of the iBoxx $ Liquid High Yield Index.
  • Salesforce.com (NYSE:CRM): The shares have traded in a 52-week range of $83.61 to $153.99 and most recently traded at $137.10.  Its market capitalization is $18.36 billion, its P/E ratio is 400.88, and it earned $0.34 per share last year. Faber says to short this stock.  About the company:  Salesforce.com, Inc. provides software on demand. The Company supplies a customer relationship management service to businesses worldwide providing a technology platform for customers and developers to build and run business applications. Clients use Salesforce.com to manage their customer, sales and operational data.  Competitors include: Microsoft Corporation (NASDAQ:MSFT), Servisource Intl, Inc. (NASDAQ:SREV), SAP AG (NYSE:SAP), Oracle Corp. (NASDAQ:ORCL), Google Inc. (NASDAQ:GOOG), Pegasystems Inc. (NASDAQ:PEGA), NetSuite Inc. (NYSE:N), CA, Inc. (NASDAQ:CA), LivePerson, Inc. (NASDAQ:LPSN), and Constant Contact, Inc. (NASDAQ:CTCT).

(Note: All the original Barron’s article can be seen here.  Selected financial data is taken from Yahoo! Finance.  All data are assumed to be accurate.)

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