Kimmel Says 2014 is Most Unloved Bull Market in 25 Years, Shorts LinkedIn
By Vittorio Hernandez | June 26, 2014 12:56 PM EST
Jordan Kimmel, chief executive officer at investment education firm InvestView (OTCQB: INVU) said 2014 remains a bull market and described this year as the most unloved bull market since he joined the financial industry more than 25 years ago.
A security guard walks past the New York Stock Exchange in New York (Reuters)
In an interview with Forbes.com, Kimmel said each bull market ends differently and added that while the market does not need a speculative blow-off, the tremendous pessimism, the tremendous cash on the sidelines, and the Fed's policy of keeping interest rates at a mouth-watering level for companies (not investors), will keep pushing the bull market higher.
"That said, I have a fair amount of shorts that are working for me, because the market has pockets of over-valuation," Kimmel told Forbes and added, "But what I'd like first is to share some of my best ideas - and of course all of these are in our fund since I love to eat my own cooking."
Kimmel revealed he is short on popular social media Web site LinkedIn. He said LinkedIn is caught up in the social media frenzy and that its stock trades at a price-earnings ratio above 100. The social media site is also over-owned by institutions, Kimmel said. LinkedIn stock is already in a clear pattern of hitting lower tops and lower bottoms.
"And LinkedIn is currently one of Magnet's lowest-ranked stocks. So while I believe the bull market continues to have room to grow, I'm a firm believer in valuation, and coupling the Magnet scores with relative strength. When the fundamentals and technicals are telling the same story - long or short - I want that position to be in my portfolio. I'm happy to be both long and short in this market," Kimmel said.
As Jordan demonstrates in his analysis of the current market, whether bull or bear market when stocks meet his magnet criteria he is a buyer, and those that do not meet his strict criteria he is either neutral or a seller. His sage-like advice should be followed by every equity investor.
At the same time, Kimmel shared three stock positions he believes offer earnings opportunities. The first is Knightsbridge Tankers Limited, a company that is engaged in moving dry bulk commodities around the world. Knightsbridge is planning to double its current fleet and has recently broken out on higher volume.
Knightsbridge carries a dividend north of 5.5% and is one of the highest-ranked Magnet Stocks.
EastView also has position on Argentine bank Banco Macro (BMA). According to Kimmel, BMA has a tiny price-earnings ratio, very few other funds are invested in the company so far, and the stock has accelerating revenues, margins, and earnings that make it attractive to Magnet Stock.
But BMA is still down roughly 50 per cent from its 2010 high. Kimmel, however, is still optimistic about the bank's prospects because it registered a record 52-week high on significant volume. "I love stocks making a new 52-week high that still have lots of opportunity," Kimmel explained.
Kimmel also revealed InvestView's position on blue-chip biotechnology companies, Gilead Sciences which ranks out in his FACTS model. FACT is a model that identifies "the most trustworthy companies in America." Gilead posted $5 billion in sales in the last quarter, and its revenues are still growing. The biotech's profits are expected to break an all-time record this year.
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