Institutional Investor All American Research Team | Page 14
72/research & rankings THE FUTURIST THE CHARTIST CONTENTS INSIDE II OP
DE II OPENING CAPITAL THE 2012 ALL-AMERICA RESEARCH TEAM INVESTING RESEARCH & RANKINGS THE FUTURIST THE CHARTIST CONTEAM INVESTING
would drive down prices and
undermine profits at Corning, a
New York–based manufacturer
of screens for computer monitors and televisions.Through
August the stock sank 19.9 percent, from $14.97 to $11.99.
Gelblum anticipates a pickup
in spending and “a second-half
rally, reversing what essentially
was a multiple compression
that over the past year got too
severe,” he says. “Longer term,
however, the telecom-carrierfocused side of the group is
likely to fall, under increasing
pressure from a consolidating
customer base and the inevitable stabilization of web traffic
growth patterns.”
— P
.B.
In March, after the stock had
zipped to $50.31 — for a gain
of 51 percent — the 46-yearold downgraded it to hold, on
valuation.The share price had
inched up to $51.84 by the end
of August. Looking ahead,
Mahaney is upbeat: “We continue to see secular growth
across the different Internet
verticals — retail, advertising,
travel and so on,” he says.
“We believe this creates the
opportunity for companies to
generate market-premium
earnings-per-share growth
rates for the foreseeable future,
if they execute well.” — P
.B.
cent, to $665.24, by the end
of August 2012 — soaring
73.6 percent in the past 12
months alone. Sacconaghi
“has done more work on Apple
than any other analyst on the
Street,” notes another loyalist.
Looking ahead, the researcher
believes that Apple and EMC
Corp. are the sector’s most
attractive long-term stocks; and
in the next nine to 12 months,
Apple and Hewlett-Packard
Co. offer the most opportunity
for upside.
— P
.B.
York–based company became
embroiled in a phone-hacking
scandal in the U.K.; where
others saw trouble Nathanson
spotted an opportunity in the
market overreaction. Good call.
The stock vaulted 54.2 percent,
to $23.55, through August 2012.
“He was an early and vocal supporter of News Corp. — for the
right reasons,” applauds one ally.
— P
.B.
Applied Materials from sell to
neutral in May, when the price
dipped to $10.46, and then
raised it to buy in early August,
at $11.78, reasoning that a new
executive team would help
boost performance. The shares
were trading at $11.69 at the
end of that month.
— P
.B.
TECHNOLOGY SUPPLY CHAIN
Jim Suva
SOFTWARE
Christopher Danely
SEMICONDUCTOR CAPITAL
EQUIPMENT
James Covello
MEDIA
Michael Nathanson
IT HARDWARE
Mark Mahaney
Citi
The buy side says:
“Mark makes the best stock calls
and earnings forecasts.”
S
an Francisco–based Mark
Mahaney, who earns his
fifth straight sector crown, “does
an excellent job of applying a
systematic and consistent investment template to his recommendations, which allows him to
avoid the waffling and inconsistencies you often see with other
analysts,” declares one loyalist.
The Citi researcher urged investors to buy IAC/InterActiveCorp
in April 2011, at $33.32, arguing
that the market was underestimating the growth potential of
the personal sites, such as
Chemistry.com and Match.com,
hosted by the NewYork–based
online-search-services provider.
A.M. (Toni) Sacconaghi
Sanford C. Bernstein & Co.
The buy side says:
“His deep dives and drill-downs
are insightful and invaluable.”
S
anford C. Bernstein & Co.’s
A.M. (Toni) Sacconaghi,
a member of the All-America
Research Team Hall of Fame,
claims the pole position for an
11th consecutive year. “Toni
takes a long-term structural
view of his stocks,” says one
buy-sider, and thus rarely
changes his ratings. But he did
so with Apple four years ago
and has held tight since.The
47-year-old researcher urged
investors to buy Apple in
October 2008, at $96.39, based
on the Cupertino, California–
based company’s long-term
growth potential. He has since
consistently reminded clients of
the shares’ appeal. The stock
had catapulted nearly 600 per-
I N S T I T U T I O N A L I N V E S T O R . C O M • O C T O B E R 2 012
unique ability to be both defensive in a tough market as well as
offensive — to benefit when
spending improves.” — P
.B.
Nomura Securities International
The buy side says:
“He is the most knowledgeable
sell-side analyst on the Street
covering media.”
M
ichael Nathanson is
No. 1 for a second straight
year — but that simple statement is hardly reflective of the
49-year-old’s accomplishments.
Last year the Media sector was
created through the merger of
Entertainment with Publishing
& Advertising Agencies; the
Nomura Securities International analyst ranked in both
and in predecessor categories.
In fact, he has racked up 11
team appearances, including six
first-place finishes, since 2006.
Nathanson has “the ability to
combine unrivaled industry
knowledge with an investment
process similar to the buy-side
clients he serves,” X\??[ ??B?[ K?H[?[ \? ?[?Y B?X?H??]???? ?[??[ B?? LK] MK???\? H?]???X??[Y[? ?]?^H ?][???8?'B??]?H ?^\?B?Bx?%0???????SP??HTURTQS? ??T?ST????SRP??P????S?T??U??YY][H \?\?8?'H[?[ H ?^\???\??[? X???[?? YH????? ?X\??X? \?] ??$?\?Y[?[??]?X?\??[??Z\??[?[ZX?? X??[?\??][?[[?[[? ???? ?X?\?HXY ]X\?\?Y?[??[????K?[Y???XK?HBx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x?$?\?Y???? ?[??[??H?^H ?YH ?^\???'H ??Y\????\?[????\?Y?H[????[?[ \?\??'B?????X?Z[Z[?? H ? ??Y?\???[[?? ? \? X?H\??YX\?\?? ?\??\?[?[ K? K?H?? ?[??[?[?[ \???'X]?\? H[??[?\?Z[?[???X?HXZ[ ??'H ?^\??H?Y[? ?[??\?[?? H \]\?8?'XZ?HYB??Y[Z?HH[HH \??\??[Z[ K??'H[?[ H8?% ??Y?Y[?[???] ???[??X\??[?[?? ?? ??Y??] ? L8?% \?YY?H?[?H?\?K?[Y???Xx?$??\?YZX?? ???\???X[?Y?X? \?\?[ H ?^H ??^H[?\ ?[?? LK] N ?K?[Y]?[?? ][^?][? ?]\?X\??[??[?\?[X]\?Y]?? ?H[? B????? ?\? ?\?Y ? ?\?K?]Y ??\??[?? ??H \??[? ? ?K?M ??HZY R?[?X\?K?]8?&\? ?[??H?[???[??\????$?\?Y??\?X\??\????YY] ??]] ?[ [[??[??\??? ]?^ X?][??Y?[X?Y ??Y?[? ] H??\[?H ?\?[X\??[??H\??H[??[??K???Y? Y?Z[???H]H]Y?\??[?[8?&\? ?\?\?Y ?\ Y?X?? ? ? ?8?'?H\?H ??]]?H??H ?X???? H?X\?[???Y[H? ?[??[??[?^B?H?^H ?YH ?^\???'H\? H[?[ \?[?? ?\?X?Y??HX[?Y?[Y[?[?\? Y\???'B????[???[??\????$?\?YY[B?? ? ?[?? ??????H \? ? ?ZY? YX\??8?'B?\? H?\? ?[??H? ?\?H ?[?[Y[?\? [ [??8?'HX???[?? ??HY ???]K?H[??[???[?^H ?\?X\??\?XYHB??? ?? ?\?X[?[?H[?X\? B??[?X\?H ?[?H?[YY?] ?^??\?[\?\? ? X???? B?YX\?\??Z[?? ][??\??? ?\?B?[?\?\?[X][?? H ?\?[Y[??B?? H ?\? X[ Y\???X\??]?[? ] H??]Y\?[K???Yx?$?\?Y??\[?x?&\? ?? X?]?\??] H8?% \?X?[\? B?[?\ X?][??] ???[??[????X??][?8?% ?\? [?\?\ ?X?X]Y ?H ?????? Y?? ??? \??[? ???H
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