Felix Zulauf’s Barron 2011 Roundtable Picks for Investors

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.

Felix Zulauf: Zaulauf is a Swiss investor, who manages the Zulauf Asset Management hedge fund in Zug, Switzerland.

  • SPDR S&P Metals and Mining (NYSE:XME): He says to short this stock.  The shares have traded in a 52-week range of $43.71 to $77.44 and most recently traded at $65.43.  Its net assets are $1.1 billion, its P/E ratio is 16, and its yield is 0.57%.  About the company:  SPDR Metals & Mining ETF is an exchange-traded fund incorporated in the USA. The Fund’s objective is to replicate as closely as possible the performance of the S&P Metals & Mining Select Industry Index, an equal-weighted index. Company Holdings: Hecla Mining (NYSE:HL), Allegheny Technologies (NYSE:ATI), Titanium Metals (NYSE:TIE), Cliffs Natural Resources (NYSE:CLF), Alpha Natural Resources (NYSE:ANR), Stillwater Mining (NYSE:SWC), Alcoa (NYSE:AA) and CONSOL Energy (NYSE:CNX).
  • Industrial Select Sector SPDR (NYSE:XLI): He says to short this stock.  The shares have traded in a 52-week range of $26.79 to $38.98 and most recently traded at $35.21.  Its net assets are $4.2 billion, its P/E ratio is 15, and its yield is 1.69%.   About the company:  Industrial Select Sector SPDR Fund is an exchange-traded fund incorporated in the USA. The Fund’s objective is to provide investment results that correspond to the performance of The Industrial Select Sector Index. The Index includes companies involved in industrial products, including electrical & construction equipment, waste management and machinery. Company Holdings: General Electric (NYSE:GE), United Technologies (NYSE:UTX), United Parcel Service (NYSE:UPS), Caterpillar (NYSE:CAT), 3M Company (NYSE:MMM), Boeing Company (NYSE:BA) and Union Pacific (NYSE:UNP).
  • Technology Select Sector SPDR (NYSE:XLK): He says to short this stock.  The shares have traded in a 52-week range of $20.01 to $27.09 and most recently traded at $24.77.  Its net assets are $7.88 billion, its P/E is 15, and its yield is 1.26%.   About the company: Technology Select Sector SPDR Fund is an exchange-traded fund incorporated in the USA. The Fund’s objective is to provide investment results that correspond to the performance of The Technology Select Sector Index. The Index includes products developed by defense manufacturers, microcomputer components, telecom equipment and integrated computer circuits. Company Holdings: Apple Inc (NASDAQ:AAPL), IBM (NYSE:IBM), AT&T (NYSE:T), Microsoft (NASDAQ:MSFT), Oracle Corp (NASDAQ:ORCL), Google (NASDAQ:GOOG), Verizon (NYSE:VZ), Intel (NASDAQ:INTC), Qualcom (NASDAQ:QCOM),
  • Financial Select Sector SPDR (NYSE:XLF): He says to short this stock.  The shares have traded in a 52-week range of $13.29 to $17.20 and most recently traded at $14.83.  Its net assets are $7.36 billion, its P/E ratio is 12, and its yield is 1.02%.  About the company: Financial Select Sector SPDR Fund is an exchange-traded fund incorporated in the USA. The Fund’s objective is to provide investment results that, before expenses, correspond to the performance of The Financial Select Sector. The Index includes financial services firms whose business’ range from investment management to commercial & business banking. Company Holdings: JP Morgan Chase & Co (NYSE:JPM), Bank of America (NYSE:BAC), Wells Fargo & Company (NYSE:WFC) and Citigroup (NYSE:C).
  • Consumer Staples Select Sector SPDR (NYSE:XLP): He says to buy this stock.  The shares have traded in a 52-week range of $25.30 to $32.46 and most recently traded at $30.91.  Its net assets are $4.59 billion, its P/E ratio is 15, and it yields 2.5%.  About the company: Consumer Staples Select Sector SPDR Fund is an exchange-traded fund incorporated in the USA. The Fund’s objective is to provide investment results that correspond to the performance of The Consumer Staples Select Sector Index. The Index includes cosmetic and personal care, pharmaceuticals, soft drinks, tobacco and food products. Company Holdings: Proctor & Gamble (NYSE:PG), Philip Morris (NYSE:PM), Wal-Mart (NYSE:WMT), Coca-Cola (NYSE:KO), Kraft Foods (NYSE:KFT), CVS Caremark (NYSE:CVS), Altria Group (NYSE:MO) and Pepsico (NYSE:PEP).
  • Utilities Select Sector SPDR (NYSE:XLU): He says to buy this stock.  The shares have traded in a 52-week range of $27.92 to $34.30 and most recently traded at $32.97.  Its net assets are $4.33 billion, its P/E ratio is 13, and it yields 3.94%.    About the company: Utilities Select Sector SPDR Fund is an exchange-traded fund incorporated in the USA. The Fund’s objective is to provide investment results that correspond to the performance of The Utilities Select Sector Index. The Index includes communication services, electrical power providers and natural gas distributors. Company Holdings: Southern Company (NYSE:SO), Exelon Corp (NYSE:EXC), Dominion Resources (NYSE:D), NextEra Energy (NYSE:NEE), Duke Energy (NYSE:DUK) and American Electric Power Company (NYSE:AEP).

(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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