Leclerc was quoted in a recent Forbes article featuring the top 2014 investment ideas from advisors and money managers. He told Forbes:
“One sector in the admittedly expensive U.S. stock market that remains attractive is ‘mega-cap’ IT Companies. They are selling for low multiples of earnings/cash flow. They represent relatively high current shareholder rewards: the dividend plus buyback yields are more than 5% (and the payout ratios are low with room to grow). As a group, they represent high financial strength. Admittedly, they have disappointed investors over the past couple of years but I argue that has been baked into their current valuations.”
The portfolio manager said Cisco is a “dominant player” in global telecommunications infrastructure that has grown by acquisitions and possesses industry leading financial strength.
Regarding IBM, Leclerc told Forbes he likes the company’s balance sheet and significant economies of scale.
Read the full article here.
DISCLAIMER: The opinions provided above are those of the contributors and not necessarily those of Covestor. The investments discussed are held in client accounts as of December 31, 2013. These investments may or may not be currently held in client accounts. The reader should not assume that any investments identified were or will be profitable or that any investment recommendations or investment decisions we make in the future will be profitable. Past performance is no guarantee of future results.